Fortescue Metals Group: Steady result but guidance on the soft side

About the author:

Author name:

By Adrian Prendergast

Job title:

Senior Analyst

Date posted:

28 July 2023, 8:00 AM

Sectors Covered:

Mining, Energy

• Fortescue Metals Group (ASX:FMG) posted an in-line 4Q23 result in terms of shipments, pricing and costs.
• FY23 shipments totalled 192mt, coming in at the top end of guidance.
• C1 costs again impressed, tracking ahead of some larger competition.
• FMG is excited about its Belinga project in Gabon, with first shipment expected by CY23 year end. But we see a lot more work to be done on the project.
• FY24 guidance was given with total shipments of 192-197mt, C1 costs of US$18.00-19.00/wmt, and capital expenditure of US$2.8-$3.2bn.
• We maintain our Reduce rating with a Target Price of (login to view).

Find out more

If you would like more information, please contact your adviser or nearest Morgans office.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.