Fortescue (ASX:FMG) is looking at a $US1.5 billion-plus boost to revenue and a corresponding boost to earnings for the year ending June, judging by a comparison of average iron ore prices received by the company over the past two years.
Fortescue stated in the June quarter production and sales report that its average iron ore price was around $US103 per tonne, just over $US8 per tonne more than the $US94.74 received for 2022-23.
The boost from the higher price will more than offset the small dip in shipments: 191.6 million tonnes, including 1.2 million tonnes of magnetite from its 69% owned Iron Bridge mine, compared with 192 million tonnes in 2022-23, with all tonnes shipped in that year consisting of hematite fines.
The boost of just over $US1.5 billion equates to around $A2.4 billion, which will be important for the final dividend, which is paid in Australian currency while the company reports everything else in U.S. dollars.
Total dividends for 2022-23 were $A1.73, with a final of $1 per share. After paying an interim dividend earlier this year of $1.08 per share, a final dividend of well over $A1 per share would not be too much to expect.
Looking at earnings, the company reported a net after-tax profit of $US4.796 billion for the year ending June 2023, with an underlying figure of $US5.5 billion.
The company’s margin fell to 59% from 61% a year ago.
