RIO, BHP and FMG: ASX miners in focus as iron ore hits 1-month high

Iron ore prices surged past US$161 per tonne on 4 April 2022, the highest level in over a month. The commodity’s prices had been in a free fall since August last year, falling from over US$200 per tonne to around US$90 per tonne in November 2021.

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However, November turned out to be a turnaround month for iron ore, changing the course of its direction.

On that note, let us have a look at three ASX iron ore miners and how they fared today in the wake of iron ore rallying to a month’s high.

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1. Rio Tinto Limited (ASX:RIO)

Rio Tinto is one of the largest miners in the world and has a market capitalisation of AU$44.79 billion. Apart from iron, it also explores and develops projects for gold, copper, aluminium, titanium dioxide and other minerals and metals. In FY21, the company recorded a total revenue of AU$63.5 billion and a net profit of AU$21.09 billion.

The company is also a regular dividend payer and is about to pay a dividend of AU$6.628 per share on 21 April 2022, translating into a dividend yield of 11.79%. On 5 April 2022, the RIO share price closed 0.34% down at AU$120.24 and its year-to-date (YTD) return stands at a decent 20.61%.

2. BHP Group Limited (ASX:BHP)

Melbourne-based BHP Group is an Australian mining gian, having a market capitalisation of AU$265.5 billion. The company produces and processes coal, iron ore, copper and manganese ore. It is also involved in hydrocarbon exploration, production and refining. In FY21, the company clocked a revenue of AU$56.92 billion and a net profit of AU$11.3 billion.

BHP shares have rallied over 22.58% for this year, last closing at AU$51.95 on 5 April 2022. The stock is also trading at a handsome dividend yield of 9.14%, having declared its most recent dividend of AU$2.081 on 28 March 2022.

3. Fortescue Metals Group Limited (ASX:FMG)

The last iron ore miner on the list is FMG, which is a vertically integrated green energy and resources group, incorporating green energy solutions for mining, processing and transporting of iron ore and other metals. The company has a market capitalisation of AU$66.81 billion and recorded a net profit of AU$10.3 billion in FY21.

High profits also allowed the company to pay a handsome dividend of AU$3.58 per share in CY21, translating into a dividend yield of 13.68%. Today, FMG shares jumped 0.09% to AU$21.72 and the stock’s YTD return stands at 9.42%.

Bottom Line

Iron ore prices have been recovering since they hit bottom in November last year. The recent panic buying in the commodities market amid the Russia-Ukraine war has only helped support the metal prices. However, before investing in any stock, investors must do a proper due diligence.

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