Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1

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Fortescue Metals : Ships More Ore; Steps Up Cost-Cutting
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07/22/2015 | 08:11pm US/Eastern
By Rhiannon Hoyle

SYDNEY--Fortescue Metals Group Ltd. (FMG.AU) said it shipped slightly more iron ore than expected last fiscal year, as it outlined plans to step up cost-cutting amid a downturn in prices.

The Perth-based iron-ore producer Thursday said iron-ore shipments totaled 165.4 million metric tons in the year through June, up 33% on-year and a touch higher than its earlier projection of 160-165 million tons. It shipped 42.4 million tons in its fiscal fourth quarter, up 5% on-quarter and 10% on-year, the company said.

Still, Fortescue said it intended to deepen cost cutting at a time when the price of iron ore has tumbled to a decade low. It said it expects to cut a further US$1.4 billion of annual costs this fiscal year, following a reduction of US$1.6 billion over the past two years.

Fortescue estimated its breakeven price was around US$39 a ton. Spot iron ore Wednesday traded at US$50.70 a ton.

Write to Rhiannon Hoyle at [email protected]
 
Fortescue Deepens Cuts as Iron-Ore Downturn Bites
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07/23/2015 | 02:54am US/Eastern
By Rhiannon Hoyle
SYDNEY-- Fortescue Metals Group Ltd. said it intends to cut costs in the year ahead by nearly as much as the two prior fiscal years combined, as the miner steps up its defense against a slumping iron-ore price.

Once a tiny explorer, Fortescue took on major producers Vale SA, Rio Tinto PLC and BHP Billiton Ltd. in a decadelong expansion that turned it into the world's fourth-largest iron-ore exporter. But the cost of digging up its ore is higher than those rivals, and the miner also sells its raw material, which is lower quality, for less. That leaves it vulnerable as iron-ore prices fall.

In 2012, executives set about cutting costs from the business, spooked by a sharp dip in prices that sparked emergency talks with lenders. Cutbacks were wide-ranging, from job layoffs to company funded barbecues.

Now, Fortescue thinks it can go deeper. On Thursday, the miner said it expects to cut costs a further US$1.4 billion in the year through June, 2016, almost matching the US$1.6 billion of savings recorded over the 24 months prior.

"That means we will produce the same amount of tons as we did last year, and we will spend US$1.4 billion less in doing so," Chief Financial Officer Stephen Pearce said on a conference call.

The miner is renegotiating rates with suppliers and changing how it blends and processes ore. Mr. Pearce wouldn't say whether there would be more job cuts, although he said: "We will always continue to refine our organization."

Chief Executive Nev Power said Fortescue aims to "close the gap" with BHP and Rio Tinto. All three companies operate large mines in the Pilbara region of Western Australia.

Analysts praised the miner's efforts on costs, and its higher production. The Perth-based producer said iron-ore shipments totaled 165.4 million metric tons in the year through June, up 33% on-year and at the top end of its earlier projection of 160-165 million tons.

But that wasn't enough to turn investors' attention away Thursday from the weak iron-ore price, said traders.

The spot price declined 2.7% late Wednesday to US$50.70 a ton. Earlier this month, the price fell to a decade low of US$44.10 a ton, down 38% this year and more than two-thirds on the start of 2014.

"Again, not a day to be in iron ore," said Quay Equities head of trading Tristan K'Nell. Fortescue shares were recently down 6%.

Analysts predict iron ore will fall further later this year, largely on rising supplies, including from billionaire Gina Rinehart's new 55-million-ton-a-year Roy Hill mine in Pilbara. BHP and Rio Tinto are also producing more.

"The well-documented continuation of rising seaborne supply continuing to overwhelm weak demand from China remains the dominant theme in the iron-ore market," said Argonaut Securities analyst Helen Lau. Citi analysts forecast prices to fall into the US$30s before year-end.

Fortescue said it would now hold production steady at 165 million tons. The miner estimates it has a break-even price of US$39 a ton, although that estimate has a lot of moving parts, including the value of the Australian dollar. A falling Australian dollar is good for resources exporters, who have their costs in that currency but sell their commodities in U.S. dollars.

Mr. Power argues Fortescue's balance sheet is in good shape to weather further price dips. The miner recently managed to refinance its debt, albeit at a higher interest rate.

"With US$2.4 billion in the bank and no debt due until 2019, we are in an incredibly strong position" to hold on through any declines below that break-even price, he said.

Still, Fortescue's stock has lost nearly two-thirds of its value in the past year as investors have fretted over both its high debt pile and its ability to compete with BHP and Rio Tinto, which are also cutting costs.

"This Darwinian environment demands cost advantage and a strong balance sheet," Morningstar Inc. analyst Mathew Hodge said recently. "Fortescue Metals Group has neither."
 
Le tre "occasioni" che si presentano in questo momentum sono: Peabody, Amd, Bombardier. Opinioni, pareri & suggestion ?
 
ho fatto shopping Bombardier ...
2025 in usd ...
ora vedendo la 2021 in Eur a 95 ......quasi quasi ........
area 90-95 x me buy

p.s. comunque sia TOO BIG TOO FAIL ....
al limite sara' acquisita ....
ma la vedo meno rischiosa di molte altre....
 
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