Fortescue Metals Group Limited (ASX: FMG) is a reputed iron ore miner with a global footprint and is engaged in the exploration, development, production, processing and sale of iron ore. It has four mine sites in the Pilbara region and operates designed rail and port facilities for supply to Port Hedland.
Fortescue Metals Group has announced an ordinary fully paid dividend on 14th May 2019. The distribution amount of A$0.600 per share is payable on Friday, 14th June 2019. The ex-date and record date for the dividend are Wednesday, 22nd May 2019 and Thursday, 23rd May 2019, respectively.
The company released its operational and financial highlights at the BAML Conference Presentation on 14th May 2019.
The company is delivering growth and income for shareholders. It declared a fully franked dividend of $0.60 per share recently. The total dividend for FY19 stands at A$0.90 per share, out of which $0.19 per share was fully franked interim dividend, $0.11 per share was fully franked special dividend, and $0.60 per share was fully franked dividend. The company underwent a share buyback of $139.0 million.
FMG has integrated operations and marketing, with strong demand for its products in China and other regions. As per the National Bureau of Statistics, in the March quarter, China steel production increased by 9.9% year-on-year (Y-o-Y).
Fortescue has a diverse customer base along with proximity to high growth regions and is responsive to the market needs. The half-yearly sales for the group outside China remained at 10%, with its maiden shipments to new Indonesian and German customers.
On the Eliwana mine and rail project front, Fortescue is on target for delivery on time and on budget. Majority of the major equipment was tendered by the company and was in line with its budget. Fortescue made a US$1.275 billion capital investment in the 30mtpa dry OPF 143km rail project.
Further, the company invested US$2.6 billion in Stage 2 of the Iron Bridge Magnetite Project underpinned by its track record in development and operations. It has a globally competitive low capital intensity and operating cost in the project along with an industry-leading energy efficient operation and innovative design incorporating a dry grinding and crushing circuit.
On the financial performance front, Fortescue reported an underlying EBITDA of US$1.6 billion during HY19. Further, it reported a net profit after tax of US$644 million.
On the price-performance front, at the time of writing on 15th May 2019, AEST 03:45 PM, the stock of Fortescue Metals Group was trading at $8.150, with a market capitalisation of $24.91 billion. The stock has yielded a YTD return of 98.35%. It has shown significant volatility with returns of 107.35%, 30.25% and -0.74% over the past six months, three months and one-month period, respectively. Its 52-week high price stands at $8.270 with a 52-week low price of $3.455 and an average trading volume of ~18.40 million. The stock is trading at a PE multiple of 20.460x, with an annual dividend yield of 3.83%.
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