Chinese miners are killing Fortescue Metals

Intelligent Investor

Independent Financial Research

Chinese miners are killing Fortescue Metals. The celebrated 'new force in iron ore' is bleeding. Iron ore prices have fallen from peaks of US$180 a tonne to just over US$60 a tonne and savaged Fortescue Metal's share price, which has fallen from $6 just 12 months ago to about $2 today. With net debt of over $9bn and a shrunken market capitalisation of just over $6bn, things appear grim for the one time market darling. It isn't just that iron ore prices have fallen or that Fortescue carries comparatively more debt than just about any other producer. The real problem bleeding the business is the refusal of producers, especially Chinese domestic miners, to cut output in response to lower prices. (VIEW LINK)

2 topics

Intelligent Investor
Intelligent Investor
Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment