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ASX 200 surges to new record, Fortescue drops, Inghams flies higher

The S&P/ASX 200 Index (ASX:XJO) jumped higher today. However, the Fortescue Metals Group (ASX:FMG) share price fell after an update.
The post ASX 200 surges to new record, Fortescue drops, Inghams flies higher appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) hit a new record today, it ended up 1.2% to 7,180 points.

Here are some of the highlights from the ASX:

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price ended the day lower by 0.7% after giving investors an update.

Fortescue gave an Iron Bridge update saying that it’s on track to deliver 22 million tonnes per annum of high grade 67% Fe magnetite concentrate product with first production by December 2022.

The miner has made an investment to provide an enhanced product range and increase production and shipping capacity to meet strong customer demand.

Fortescue has revised its capital estimate to US$3.3 billion to US$3.5 billion, with FMG Iron Bridge Ltd’s share being US$2.5 billion to US$2.7 billion.

The joint venture has incurred capital expenditure of US$1.5 billion as at 30 April 20021, with FMG Iron Bridge’s investment being US$1.3 billion.

Fortescue said that the 67% Fe content low impurity concentrate product is anticipated to receive a premium to the Platts 65% Fe CFR Index.

The miner believes it will have a competitive cost structure with the life of mine C1 cost estimate being US$33 to US$38 per wet metric tonne (wmt) and sustaining capital expenditure of US$5 to US$7 per wmt.

Inghams Group Ltd (ASX: ING)

The Inghams share price went up around 8% after saying to investors that it expects to beat the market’s profit expectations for FY21.

Inghams said that it’s deriving benefits from operational efficiencies implemented throughout the year.

There has also been an improvement in general trading conditions as the impact of COVID-19 restrictions have decreased over the last six months, although that excludes the seven-day lockdown has just started in Victoria.

The ASX 200 share said it also received a research and development tax credit relating to a prior financial year.

Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to come in between $438 million to $448 million. Statutory net profit after tax (NPAT) is expected to be between $80 million to $87 million.

To enable comparison to pre AASB 16 figures, Inghams said underlying EBITDA is expected to be between $203 million to $213 million and underlying NPAT is expected to be between $96 million to $103 million.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price was one of the best performers in the ASX 200 today, going up more than 4%, after confirming it has received a takeover offer for its PEXA shares from KKR.

The proposal represents an enterprise value for 100% of PEXA at $3 billion plus cash on the balance sheet as at the date of settlement. At 31 March 2021 the cash balance was $126 million.

KKR said the offer is open and can be accepted until 5pm on 30 May 2021. Domain Holdings Australia Ltd (ASX: DHG) is expected to partner with KKR.

The Link board is now considering the proposal. No decision has been made yet. Both the trade sale process and exploration of the viability of an IPO continue to proceed.

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The post ASX 200 surges to new record, Fortescue drops, Inghams flies higher appeared first on The Motley Fool Australia.

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