Fortescue Metals Group (ASX:FMG) Reports Robust Earnings on Strong Iron Ore Sales for FY2024

August 28, 2024 10:17 AM AEST | By Team Kalkine Media

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Fortescue Metals Group (ASX:FMG) Reports Robust Earnings on Strong Iron Ore Sales for FY2024 — Image source: shutterstock

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Fortescue Metals Group Ltd (ASX:FMG) has announced impressive financial results for the 2024 fiscal year, marking its third-highest earnings in the company’s history. The strong performance is largely attributed to record iron ore shipments, which have solidified FMG’s position as one of the leading players in the global mining industry.

Key Financial Highlights

EBITDA Growth: FMG reported an underlying EBITDA of US$10.7 billion, representing a 7% increase compared to the previous fiscal year. This growth reflects the robust performance of the company’s iron ore operations, with shipments reaching 191.6 million tonnes (Mt) during FY2024.

Net Profit and EPS: The company achieved a net profit after tax (NPAT) of US$5.7 billion, accompanied by earnings per share (EPS) of US$1.85 (A$2.82). These figures underscore FMG’s ability to generate substantial returns from its core business activities, despite fluctuating commodity prices.

Operational Milestones

CEO Dino Otranto emphasized that FY2024 was a year of significant achievements for FMG. Among the milestones celebrated were the first ore production from the Flying Fish and Hall Hub deposits. These developments have contributed to the company’s ongoing expansion and operational efficiency.

Additionally, FMG successfully commissioned its gaseous and liquid hydrogen plant, the largest of its kind on a mine site in Australia. The hydrogen produced from this plant will be integral to the company’s Green Metal Project, which began earlier this month. This initiative aligns with FMG’s broader commitment to sustainability and innovation in the mining sector.

Shareholder Returns

Reflecting its strong financial performance, FMG has declared a fully franked final dividend of A$0.89 per share. This brings the total dividends declared for FY2024 to A$1.97 per share, representing a 70% payout of net profit after tax. The company’s commitment to delivering substantial shareholder returns remains a key focus as it continues to drive growth and value creation.

Conclusion

FMG’s strong earnings for FY2024, driven by record iron ore shipments and strategic operational milestones, highlight the company’s resilience and growth potential in the global mining industry. With ongoing projects like the Green Metal Project and a focus on sustainability, FMG is well-positioned to maintain its leadership in the sector while delivering robust returns to shareholders.

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