Fortescue has announced the delivery of record shipments and billions in profits over the first six months of the 2024–25 financial year (H1 FY25).
Iron ore shipments were up three per cent on H1 FY24 to 97.1 million tonnes (Mt). Fortescue treated investors to a fully franked interim dividend of $0.50 per share after banking $US1.6 billion ($2.5 billion) in profits for H1. The dividends represent a 65 per cent payout of H1 profits after tax.
“It’s been an outstanding operational performance for the first half of FY25 with the team achieving our highest ever half year shipments while keeping costs low,” Fortescue Metals chief executive officer Dino Otranto said.
“The delivery of our decarbonisation plan is progressing well following a $US2.8 billion ($4.3 billion) partnership signed with Liebherr for zero emissions mining equipment where Fortescue Zero will supply the battery power systems.
“Our award winning Billion Opportunities program also went from strength to strength, with now $6.5 billion in contracts awarded to First Nations businesses since 2011.”
Takeover bid draws near
Red Hawk Mining announced yesterday that Fortescue had officially acquired more than 90 per cent of the company’s shares, triggering a compulsory acquisition under the Corporations Act 2001.
Fortescue will pay $254 million for Red Hawk with the aim of accessing its Blacksmith iron ore project 30km west of Fortescue’s Solomon operations in the Western Hub.
Blacksmith offers Fortescue 243 million tonnes of ore at 59.3 per cent iron grade.
Fortescue’s bid has been swift and decisive, with the iron ore giant gaining 78 per cent of Red Hawk at the start of February just over a week after the takeover wheels were set in motion.
A cornerstone of the iron ore major’s plan has hinged on a quick sale, which saw it sweeten the pot with an offer to pay a 48 per cent premium should Red Hawk accept its offer by February 4.
Now, the remaining Red Hawk shareholders who accept Fortescue’s offering by March 3 will have access to the premium, which will see the miner acquire all of Red Hawk’s fully paid ordinary shares for cash consideration of $1.20 per share.
