Bulletin: Fortescue Has Headroom To Pay Higher Dividends

SYDNEY (S&P Global Ratings) May 15, 2019--S&P Global Ratings today said that Australia-based mining company Fortescue Metals Group Ltd. (FMG; BB+/Stable/--) can accommodate larger dividend payments in the year ending June 30, 2019, within the current rating level. We consider the increased returns to be opportunistic, enabling the accelerated distribution of franking credits to eligible shareholders. The company's proposed fully franked dividend of A$0.60 per share will bring total dividends to date to A$0.90 per share for fiscal 2019. We anticipate total shareholder returns announced to date will amount to about US$2.4 billion in fiscal 2019, including ordinary dividends, special dividends, and share buybacks. Fortescue continues to benefit from elevated spot iron ore prices. Prices have sustained above US$90 per

...May 15, 2019 SYDNEY (S&P Global Ratings) May 15, 2019--S&P Global Ratings today said that Australia-based mining company Fortescue Metals Group Ltd. (FMG; ##+/Stable/--) can accommodate larger dividend payments in the year ending June 30, 2019, within the current rating level. We consider the increased returns to be opportunistic, enabling the accelerated distribution of franking credits to eligible shareholders. The company's proposed fully franked dividend of A$0.60 per share will bring total dividends to date to A$0.90 per share for fiscal 2019. We anticipate total shareholder returns announced to date will amount to about US$2.4 billion in fiscal 2019, including ordinary dividends, special dividends, and share buybacks. Fortescue continues to benefit from elevated spot iron ore prices. Prices have sustained above US$90 per dry metric ton (/dmt) over the past month due to supply disruptions amid robust demand. We have also observed a material improvement in price realization for 58%...

Bulletin