- Fortescue Metals has achieved record profits during the 2019 financial year, totalling US$3.2 billion
- The booming price of iron ore saw revenue increase to US$10 billion, despite shipping one per cent less ore
- Fortescue’s share price is down 4.1 per cent this morning, currently sitting at $7.26 apiece
During the 2019 financial year, Fortescue Metals delivered recorded breaking profits, totalling US$3.2 billion.
The mining mogul shipped one per cent less ore during the year, however, the booming price of iron ore saw revenue increase to US$10 billion.
Fortescue attributes its revenue growth partly to the rising shipments of its 60.1 per cent iron product, West Pilbara Fines, among others. Additionally, Chinese steel production is up in comparison to the 2018 financial year.
Underlying earnings before, interest, tax, depreciation and amortisation increased 90 per cent on the previous year, coming in at US$6 billion.
Fortescue’s CEO Elizabeth Gaines said combining operations across the company, including marketing, processing and cost management has led to the companies financial success.
“Cash on hand increased to US$1.9 billion at 30 June, while net debt reduced to US$2.1 billion, the lowest level since achieving current production capacity in FY14,” Elizabeth added.
The company expects its near US$4 billion investment in projects such as the Eliwana Mine and rail development, and the Iron Bridge Magnetite will drive iron production up.
Shareholders will receive a fully franked final dividend of $0.24 per share, bringing the total for the year to $1.14 per share.
Despite record breaking profits, Fortescue’s share price is down 4.1 per cent this morning, currently sitting at $7.26 apiece, as of AEST 10:53 am.