Your capital is at risk. CFDs can result in losses that exceed your initial deposit. Please ensure you fully understand the risks involved. Your capital is at risk. CFDs can result in losses that exceed your initial deposit. Please ensure you fully understand the risks involved.

FMG share price: where next following record FY21 result?

We examine the highlights from the mining giant’s full-year report.

The Fortescue Metals Group (ASX: FMG) share price opened firmly higher on Monday, after the pure play iron ore miner posted a record set of full-year FY21 results.

By 12:22 PM the stock was up 6.05% to $21.21 per share.

Across the board FMG’s operational results headed north, total iron ore shipments edged higher to come in at 182.2 million tonnes, while earnings EBITDA and profits (NPAT) all running off the back of the recent iron ore boom.

Cash in hand, the miner looks to be spending big to keep its shareholders happy, declaring a record final dividend as part of the results.

FY21 Results

Boosted by a rampant commodity market, the miner saw its total revenue hit US$22.2 billion in fiscal 2021.

That was driven partly by the sale of slightly more iron ore during the year, but primarily by the recent surge in commodity prices, which saw FMG’s average revenue increase 72% to US$135 per tonne in 2021.

Profits didn’t waver either: the miner booked earnings (EBITD) of US$16.4 billion and recorded an earnings margin of 73%. Meanwhile, post-tax profits doubled: underlying NPAT was US$10.3 billion, equating to earnings per share (EPS) of US 335 cents or AUD 445 cents per share.

Of the back of all this the miner retained a seemingly unassailable dividend policy, declaring a final dividend of AUD$2.11 per share. That takes FMG’s total dividends in FY21 to AUD$11 billion or AUD$3.58 per share - implying a favourable 80% payout ratio. Funnily enough, this was actually behind the market consensus, which pegged FMG at paying out a dividend of AUD$2.17 per share.

Click here to read our beginners’ guide to fundamental analysis.

Commenting on those results, FMG CEO – Elizabeth Gaines – said:

‘Guided by our unique culture and Values, the Fortescue family has delivered a second consecutive year of record performance, with shipments, earnings and operating cashflow surpassing any year in Fortescue's history.'

'Through the Iron Bridge Magnetite project and Fortescue Future Industries, we are investing in the growth of our iron ore operations, as well as pursuing ambitious global opportunities in renewable energy and green industries.'

FY22 outlook

Looking forward, the miner said it expected to ship between 180 million tonnes to 185 million tonnes of iron ore in fiscal 2022.

From a costs perspective, across 2022 C1 costs are expected to come in at between US$15.00 to US$15.50 per wet metric tonne, while total CAPEX, on an ex FFI basis, is expected to come in at between US$2.8 billion to US$3.2 billion.

Those estimates are based on an average Australian dollar exchange rate of 75 cents.

Do you have a view on FMG? Whatever you think, you can use CFDs to trade stocks and other assets, through IG’s world-class trading platform.

For example, to buy (long) or sell (short) a variety of local and international stocks using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter <Company name> in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

For investors not looking to trade stocks, you can invest in shares directly through our share trading service.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.