Pilbara iron ore mine and rail operator Fortescue Metals Group has reported a $4.72 billion profit in FY19 off the back of solid volumes and improved prices.
FMG funnelled 167.7 million tonnes of iron ore through its mining, processing, rail and port supply chain in FY19, down 1 per cent.
But it received an average US$65 per dry metric tonne for that product, a 48 per cent increase compared to FY18. The result was record figures for earnings and net profit.
Underlying earnings before interest, tax, depreciation and amortisation were US$6.0 billion (A$8.86 billion).
Underlying net profit after tax was US$3.2 billion (A$4.72 billion).
That result allowed FMG to fork out a fully franked final dividend of 24c per share, adding to the 90c in dividends already handed out through FY19, bringing the total figure to $1.14, a near four-fold increase on dividends on FY18.
Fortescue’s share price has risen from $3.95 this time last year, to a $7.31 opening value on August 27, 2019 – a rise of $3.36, or 85 per cent.
With its existing Pilbara mine and rail operation running smoothly, the company is now turning to its US$3.9 billion investment in its Eliwana Mine and Rail development and Iron Bridge Magnetite projects.
The Eliwana project includes the construction of 143 kilometres of new railway.
FMG chief executive Elizabeth Gaines was upbeat looking into FY20.
“Fortescue has never been in a stronger position to continue to optimise margins and cashflows, underpinning the resilience in our earnings through all market cycles,” Gaines said.