Hello...
Bazinga!
Amazing news for owners of shares in Fortescue Metals Group (ASX: FMG), which reported a monster net profit after tax of $2.7 billion (US $2.1 billion) today.
That's an increase of +112 per cent from the prior year.
The dividend was tripled to 45 cents per share, while future payout ratios will be higher too.
That's one heck of a payday for Mr. Forrest.
That's one heck of a payday for Mr. Forrest.
The dividend in FY2015 was only 5 cents per share.
FMG racked up US$3.5 billion in free cash flows in FY2017, helping the group to massively reduce its debt pile.
Fortescue aims to have its costs down to US$11-12/wmt in FY2018, which is a truly extraordinary cost performance from US$48 in FY2012.
Meanwhile, the price of Australia's most valuable commodity has a rocket under it.
The below charted benchmark iron ore spot price closed just shy of $80 at $79.93/tonne.
That's now well over $100/tonne in Aussie dollar terms.
A budget bonus indeed, to help at least in part compensate for lower than forecast wages growth!
FMG's share price soared by +6.36 per cent to $5.85.
