Bulletin: Fortescue's Bumper Earnings Boost Growth Plans

SYDNEY (S&P Global Ratings) Aug. 24, 2020--S&P Global Ratings today said that Fortescue Metals Group Ltd.'s (BB+/Stable/--) healthy free cash flow generation and robust balance sheet provide meaningful financial support for its sizable growth ambitions. Fortescue's results for the year-ended June 30, 2020, benefited from elevated iron ore prices amid COVID-19-related supply disruptions to Brazilian iron ore and fresh Chinese demand stimulus. Underlying EBITDA (company's measure) was a record US$8.375 billion on the back of bumper shipments of 178.2 million ton (mt). Shipments are set to rise again in fiscal 2021 to between 175mt and 180mt. That said, our latest metal price assumptions anticipate a moderation in iron ore prices beyond calendar year 2020 (see article, "Metal Price Assumptions: Gold

...August 24, 2020 SYDNEY (S&P Global Ratings) Aug. 24, 2020--S&P Global Ratings today said that Fortescue Metals Group Ltd.'s (##+/Stable/--) healthy free cash flow generation and robust balance sheet provide meaningful financial support for its sizable growth ambitions. Fortescue's results for the year-ended June 30, 2020, benefited from elevated iron ore prices amid COVID-19-related supply disruptions to Brazilian iron ore and fresh Chinese demand stimulus. Underlying EBITDA (company's measure) was a record US$8.375 billion on the back of bumper shipments of 178.2 million ton (mt). Shipments are set to rise again in fiscal 2021 to between 175mt and 180mt. That said, our latest metal price assumptions anticipate a moderation in iron ore prices beyond calendar year 2020 (see article, "Metal Price Assumptions: Gold Shines, While Slow Recovery Flattens Other Metal Prices", July 2, 2020). In our opinion, Fortescue's strong operating and financial performance positions it well for a period of...

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