Insights

Own Fortescue (ASX:FMG) shares? Here’s what to look for during reporting season

Fortescue’s FY21 results are right around the corner. What should investors expect?
The post Own Fortescue (ASX:FMG) shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia. –

The Fortescue Metals Group Limited (ASX: FMG) share price looks like it has fallen off a cliff, sliding 7.7% in the last two trading sessions.

Despite the recent weakness in iron ore prices driving down the Fortescue share price, investors might want to turn their attention to the company’s upcoming FY21 results on 30 August.

What should investors look out for?

Record shipments and earnings

Fortescue released its June quarter and full year FY21 activities update last Friday, which should give investors a solid preview of the company’s upcoming results.

According to the announcement, Fortescue delivered a record 49.3 million tonnes (mt) in the June quarter and 182.2 mt for FY21, topping its guidance of 182 mt.

In addition, the company’s average revenue for iron ore was US$135/dry metric tonne in FY21.

The upbeat announcement helped drive the Fortescue share price to an all-time record high of $26.58 last Friday.

By comparison, the company shipped 178.2 million wet metric tones (wmt) in FY20 at a realised price of US$78.62/dmt.

All eyes on dividends

The Fortescue share price paid a significant 147 cents interim dividend in March this year, almost higher than its entire FY20 dividend of 176 cents.

With record shipments and impressive revenue per tonne of iron ore, investors should have their eyes peeled on what the total dividend will be for FY21.

In the past two years, Fortescue has maintained a dividend payout ratio of net profits of 77% and 78% respectively.

Why the Fortescue share price is selling off before its results

Despite a highly anticipated full year results announcement right around the corner, the recent decline in iron ore spot prices might take the spotlight.

Iron ore spot prices have been trading above the US$200/tonne level since early May.

However, in a quick turn of events, have tumbled from highs of US$220 to US$178.97 in the past week, according to Markets Insider.

Mining.com reports that the sudden collapse was driven by China’s move to reduce domestic steel output in order to meet its decarbonisation goals.

The post Own Fortescue (ASX:FMG) shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia.

Should you invest $1,000 in Fortescue right now?

Before you consider Fortescue, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Fortescue wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Fortescue (ASX:FMG) share price under most pressure as iron ore crashes to bear market
The Fortescue (ASX:FMG) share price is falling on Monday
Why Fortescue, Over The Wire, Pro Medicus, & Whispir shares are dropping

ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high

5 things to watch on the ASX 200 on Monday

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!