Fortescue shows its vulnerability

Thursday 24 October 2024

FMG’s Q1 production report is out and appeared decent on the surface regarding volumes but it did not take long to expose the problem:

83% price realisation is up 1% QoQ but is still poor and $83 per tonne is even poorer. The high-quality ore missed as well, slipping from 101% the prior quarter.

This puts FMG behind consensus revenue and EBITDA outlooks:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.