Fortescue Metals (ASX: FMG)

Fortescue Metals (ASX: FMG) An iron ore production and exploration company

2003

FOUNDED

LARGE

SIZE

MINING + MATERIALS

Industry

Product / Service

  • Fortescue is the world’s fourth largest iron ore producer

  • Fortescue owns its rail and port facilities, allowing it to own the supply chain from mine to customer delivery

  • This includes 620km of heavy haul rail track

  • About 98% of world iron ore production is used to make iron in the form of steel.  Iron and steel are used widely in the construction of roads, railways, infrastructure, appliances and buildings  

  • A steel skeleton supports most large modern structures such as stadiums and skyscrapers, bridges and airports

  • Fortescue conducts exploration activities focussed on identifying new targets for bedded mineralisation in and around its existing operations

History

  • Fortescue was founded in 2003 and listed on the ASX in the same year via a backdoor listing

Customers

  • Fortescue’s main customers are iron ore steel mills that process iron ore into steel

Operations

  • The company is headquartered in Perth

  • The company’s operations are in Western Australia

The safest, lowest cost, most profitable iron ore producer

Profitability Table

Year Revenue (USD m) % change EBIT (USD m) % change
FY 2009 1,829 (88.6) 1,288 P
FY 2010 3,220 76.1 1,135 (11.9)
FY 2011 5,442 69.0 2,634 132
FY 2012 6,681 22.8 2,612 (0.8)
FY 2013 8,120 21.5 3,019 15.6
FY 2014 11,753 44.7 4,633 53.5
FY 2015 8,574 (27.0) 1,049 (77.4)
FY 2016 7,083 (17.4) 1,815 73.0

Fun Facts

  • In 2016, Fortescue accounted for 18 per cent of China’s total iron ore imports

  • Nev Power’s (CEO) total remuneration in FY 2016 was $8.5m

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