Up 223% in 5 years, how Fortescue (ASX:FMG) shares have been performing lately?

Highlights:

• In a month, shares of Fortescue have posted almost 3% of gain on ASX.
• Almost a week back, Fortescue shared the June quarter production report, pushing shares to AU$18.70 apiece.
• As at 30 June 2022, the cash balance of the iron core company stands at US$5.2 billion.

On Friday, Fortescue Metals Group Limited (ASX:FMG) shares were up by 1.42% to trade at AU$17.91 per share (at 10:21 AM AEST). No price-sensitive news was shared by the company and therefore it is likely that broader market movement is driving its share price up.

At 10:44 AM AEST, ASX 200 Materials (INDEXASX:XMJ) was by 1.04% to 15,599.30. Meanwhile, ASX 200 (INDEXASX:XJO) was up by 0.25% to 6,992.10.

Fortescue stock performance

Yesterday (4 August 2022), shares of Fortescue kept buzzing in the green territory throughout the trading session and cooled down flat at AU$17.66 per share. The shares defied the broader market movement, as ASX 200 Materials headed south and closed 1.06% down, and ASX 200 closed 0.014% lower.

In the last five trading sessions, Fortescue's share price has recorded a fall of 2.41% but has gained 2.71% in last one month. The shares surged to AU$18.70 per share the day the company released its quarterly production report.

Following the benchmark movement, the shares have dropped by more than 17% in the last six months, and the year-to-date fall is over 11%. In 12 months, the share price dropped by 24%.

Looking at the bigger picture, Fortescue shares have surged by a whopping 223% in the last five years (as of 11:20 AM AEST).

Things have been choppy for the mining giant. The question that arises here is, what to expect from Fortescue?

Image source: © Kuzma | Megapixl.com

Production guidance by Fortescue

On 28 July 2022, Fortescue shared the quarterly production report, and along with this, it shared the guidance for the financial year 2023 (FY23).

The iron ore exporter expects to ship 187 to 192mt of iron ore in FY23. It includes circa 1mt from the Iron Bridge Magnetite project. The estimated C1 cost for hematite is US$18.00 to 18.75/wmt.

C1 cost stands for the net direct cash cost. It shows the direct cost incurred for the production of iron ore in Fortescue.

In FY23, the company expects to incur a capital expenditure of US$2.7 to US$3.1 billion. For the green leg of Fortescue, FFI (Fortescue Future Industries), the expected expenditure is US$600 to US$700 million.

The financial position of the mining giant

As of 30 June 2022, the company's net debt position was US$0.9 billion. The cash balance during the same date stood at US$5.2 billion.

In FY22, the company recorded a capital expenditure of US$3.1 billion, with US$766 million of capital expenditure in the June quarter.