Did Fortescue really just buy 60,000 sheep?

increasing rural asx share price represented by happy looking sheepincreasing rural asx share price represented by happy looking sheep

The Fortescue Metals Group Ltd (ASX: FMG) share price is roughly flat this afternoon as reports filter through of fleecy acquisition.

In an otherwise uneventful day for the iron ore miner, shares finished up 0.38% at $20.94 apiece. An influx of buyers into the close helped Fortescue shares higher after dipping to an intraday low of $20.70 around 3pm.

What is next on Twiggy’s buy list?

Fortescue executive chair and founder Andrew ‘Twiggy’ Forrest has become known for taking stakes in other companies and making acquisitions. However, the latest reported target might raise a few eyebrows at first glance.

According to The Australian Financial Review, the billionaire businessman has his sights set on Rawlinna Station. The renowned sheep station, situated 400km east of Kalgoorlie, spans more than one million hectares of red dirt.

Unlike previous Western Australian purchases made through his private investment group Tattarang, however, it is believed the Rawlinna deal would be made by Fortescue Metals Group directly.

At present, Rawlinna Station is known for its 60,000-odd head of Merino sheep. Though, it seems unlikely Fortescue is eyeing the station for a foray into the wool business. After all, it’s iron ore that has boosted Fortescue shares to new heights and minted much of Twiggy’s wealth.

Instead, utilising the land for developing renewable energy infrastructure could be on the cards under the guise of Fortescue Future Industries. The green hydrogen hopeful is expected to soon begin shedding light on its planned projects, with the details of the first development slated before the end of June.

Reports suggest that pastoral activities would ‘co-exist’ with the potential clean energy developments. The deal has yet to be solidified as it still requires government approval.

Was it a good week for Fortescue shares?

It was a lacklustre week for the iron ore miner. A steep fall in the steelmaking commodity, acting like a magnet, pulled the company’s share price to the downside. As a result, Fortescue shares finished the week 5.5% worse off.

Fortescue’s falling quarterly production certainly didn’t do it any favours either. According to the release, mined production dropped 16% quarter-on-quarter for the three months ending 31 March 2023.

The report left Goldman Sachs reiterating its sell rating on the miner. Citing an overvaluation compared to peers, analysts from the investment bank tagged Fortescue shares with a $15.80 price target.

The post Did Fortescue really just buy 60,000 sheep? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Fortescue Metals Group Limited right now?

Before you consider Fortescue Metals Group Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Fortescue Metals Group Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of April 3 2023

(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

Motley Fool contributor Mitchell Lawler 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/20ruf5W

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s