It’s not every day that a 40 per cent fall in earnings would be applauded by the market.shows that although lower iron ore prices may have taken the sheen off revenue and profit numbers in the 2022 financial year, she leaves the hot seat with the group in rude health.
The program Gaines has led to decarbonise Fortescue’s mining operations is starting to pay dividends, with a new solar gas stationary energy project helping to displace 78 million litres of diesel during the year.
“Or, we can transition into a global green metals minerals, energy technology and development company, capable of delivering not only green iron, but also the minerals critical to the green energy transition.”Advertisement This is an industry-wide problem, of course, and Fortescue remains right at the bottom of the iron ore’s cost curve. But the pressure to protect margins will step up.magnetite iron ore project. Not only has the venture become more expensive than previously expected, but it has also caused Gaines some serious managerial heartburn; a smooth ramp-up is vital.
, developing green energy-powered mining trucks and trains, and exporting green hydrogen to the world.FFI’s ever-increasing portfolio of partnerships, agreements and memorandums of understanding can make it hard for investors to sort the cool ideas from the likely projects, but the bottom line is that Fortescue is planning to spend between $US600 million and $US700 million in FFI in 2023, with $US100 million going towards capital expenditure and the remainder in operating expenditure.
And finally, Fortescue is not the scrappy underdog anymore. It’s a robust, well-run, $60 billion miner. In other words, it’s exactly the type of company that can keep multiple plates spinning.