Fortescue share price lifts on production update

The Fortescue Metals Group Ltd (ASX: FMG) share price closed 1.18% higher on Tuesday.

Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore stock finished the day at $20.56 apiece after closing at $20.32 a share on Monday.

Here’s what helped push the Fortescue share price higher today.

What are ASX 200 investors considering?

Fortescue looks to be receiving some tailwinds from an increase in the iron ore price.

The critical steel-making metal gained 0.5% overnight to US$118.85 per tonne.

And it was not just the Fortescue share price that marched higher today. The S&P/ASX 300 Metals & Mining Index (ASX: XMM) closed up 2.45%.

ASX 200 investors were also likely poring over Fortescue’s non-price sensitive production update, released this morning.

Fortescue reported that first production at its Western Australia Iron Bridge Magnetite Project has been revised to the second half of April. First production had previously been planned to commence in the March quarter.

The project is an unincorporated joint venture between Fortescue’s subsidiary, FMG Magnetite (69%) and Formosa Steel (31%).

The miner said that despite inclement weather impacting activity and associated infrastructure at Iron Bridge, crews continue to make “significant progress”. Amid that progress, Fortescue reported the entire steel concentrate and return water pipelines have been welded and buried.

Once fully operational, Iron Bridge will produce 22 million tonnes of high-grade 67% iron magnetite concentrate every year.

According to the release, the project’s capital estimate won’t be affected by the revised production date. Capex remains estimated at US$3.9 billion. Fortescue’s share of that investment works out to approximately US$3 billion.

Fortescue share price snapshot

As you can see in the chart below, the Fortescue share price has gained 6% over the past 12 months. This compares to a loss of 5% posted by the ASX 200 over that same period.

The post Fortescue share price lifts on production update appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How I’d invest $20k in ASX 200 shares to earn a second income of $140 a month
• Guess which ASX All Ords stock is lifting on a $55m deal with Fortescue
• Fortescue share price marching higher amid green iron ‘major breakthrough’
• Why did the Fortescue share price slide today?
• How big will the Fortescue dividend be in 2024?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/2JrWp7i