Fortescue Metals Group Ltd Fall in price of the iron ore

Fall in price of the iron ore:Fortescue Metals Group Ltd (ASX: FMG) stock fell over 6.8% as on April 13, 2017 after the iron ore price plunged 8.5% overnight as per Metal Bulletin updates (April 12, 2017) due to the lack of buyers, accelerating the commodities downturn. The iron ore spot price was found to be sitting around $US68.04 a tonne, which is a loss of 28% from its high in February of US$94.86. Meanwhile, the company has announced the March 2017 quarterly production report. FMG in its March 2017 quarterly has reported shipments of 39.6 million tonnes of iron ore. The cash production costs (C1) were US$13.06 per wet metric tonne (wmt), which is a 12% improvement over the prior comparable period and 4% above the December 2016 quarter due to wet weather impacts on production and shipments. Moreover, FMG has repaid a further US$1.0 billion of debt in the March quarter, reducing the gross debt to US$4.3 billion, inclusive of US$0.7 billion of finance leases with US$1.5 billion cash on hand at 31 March 2017. This debt reduction has lowered gross gearing to 31% with net gearing of 22%. Additionally, FMG is on track to deliver the guidance of between 165 and 170 million tonnes for the full year 2017 at a C1 cost of US$12-13/wmt.

To read the complete report CLICK HERE. To get your free report CLICK HERE 


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation.Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product.The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
Copyright © 2015 Kalkine Pty Ltd ABN 34 154 808 312. No part of this website, or its content, may be reproduced in any form without the prior consent of Kalkine Pty Ltd.
Kalkine is a trading name of Kalkine Pty Ltd ABN 34 154 808 312, which holds Australian Financial Services Licence No. 425376.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s