Fortescue (ASX:FMG) shares grabbed investors’ attention today, here’s why

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Fortescue (ASX:FMG) shares grabbed investors’ attention today, here’s why

Rio Tinto, South32 Limited, ASX-listed miners, Fortescue Future Industries, Fortescue Metals Group Limited.
Image source: © Viewimage | Megapixl.com

Highlights

  • The S&P/ASX 200 Materials Sector (ASX:XMJ), which traded in the green in the initial hours of trading on Tuesday, closed 0.418% lower at 17357.100 points today.
  • The share price of Fortescue Metals Group Limited closed 0.289% higher at AU$20.770 per share on ASX.
  • The ASX200 closed lower today, down 0.28% at 7,128.80 points.

Today, the share price of Fortescue Metals Group Limited (ASX:FMG) closed 0.289% higher at AU$20.770 per share on ASX. The slight increase in the company’s share price is not attributed to any new update from its side on the ASX board but it seems to be linked to the recent increase in iron ore price. 

At a broader level, the S&P/ASX 200 Materials Sector (ASX:XMJ), which traded in the green in the initial hours of trading on Tuesday, closed 0.418% lower at 17357.100 points.

Meanwhile, the ASX200 closed lower today, dropping 0.28% at 7,128.80 points. Eight of 11 sectors traded lower today, while the financial was the best performing sector.

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Image Source: © Intst | Megapixl.com

Fortescue Metals Group Limited is an ASX-listed global iron-ore mining company with a market capitalisation of AU$63.76 billion. 

The company’s iron ore business consists of integrated mining, rail, shipping and marketing teams working jointly to export more than 180 million tonnes of iron ore annually. The company claims to be the world’s lowest-cost iron ore producer.

Fortescue Metals’ operations include three mining hubs in the Pilbara and Western Australia.

In the last one year, the share price of Fortescue Metals Group has fallen 4.93%, while the stock is 4.03% year-to-date (YTD). 

Fortescue Metals’ Q3 FY22 results

In Q3 FY22, the company’s Iron ore shipments stood at 46.5 million tonnes, 10 % higher than Q3 FY21, contributing to record shipments for the nine months to 31 March 2022 of 139.5mt. Based on the solid operating performance in the nine months to 31 March 2022, the company has upgraded its guidance for FY22 shipments to 185-188mt (previously 180 - 185mt). 

In the third quarter, the company completed the acquisition of Williams Advanced Engineering (WAE), providing Fortescue with the required technology and expertise in high-performance battery systems and electrification. Together with Fortescue Future Industries (FFI), WAE plans to develop the Infinity Train, the world’s first regenerating battery-electric iron ore train, eliminating diesel and CO2 emissions from Fortescue’s iron ore trains. 

Fortescue metals’ shares have been on investors’ watchlists because of the attractive dividend yield offered by the company. Meanwhile, shares of other major iron ore miners like Rio Tinto (ASX:RIO) and South32 Ltd (ASX:S32) were up 0.885% and 0.214% at AU$110.470 and AU$4.680, respectively. 

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