FMG posts giant profit
Fortescue Metals has posted a $14 billion profit.
The local resource iron ore giant has reported its highest-ever annual profit after shipping a record amount of iron ore amid soaring prices.
The world's fourth-largest iron ore miner says its full-year profit of $14 billion is an increase of 117 per cent since last year.
The price of the steelmaking material hit a record-high of $US233 per tonne in May this year. This was due largely to strong demand from its top consumer, China, and supply issues in Brazil.
Prices have fallen sharply since then to around $US158 a tonne, after China declared a tougher stance on emissions reduction and Brazilian output restarted.
“We fear the peak has passed, the iron ore price cycle and by extension the earnings and share price cycles are also ... lower over time,” analyst Peter O'Connor of Shaw and Partners has told reporters.
Fortescue shipped 182.2 million tonnes of iron ore in the 2020-21 fiscal year, and is predicting it will export up to 185 million tonnes in the current financial year.