One of Australias largest, and most talked about mining companies, Fortescue, have today reported a massive 628% increase in first half profits on the previous reporting period. Consequently, a maiden dividend to shareholders has been annoucned at 3 cents per share.
First half net profit increased to $US314.1 million ($311.2 million), up 628 per cent from the $US43.2 million in the prior corresponding period.
Fortescue agressively increased production during the period to take advantage of iron ore prices that almost doubled. Revenue doubled to US$2.53 billion.
Cheif Executive Andrew Forrest said,
The past six months have seen Fortescue take major steps in the realisation of its Pilbara vision.
Strong production, board approval for new mining operations and expanded port and rail systems, together with the refinance of the original project debt, lay the foundations for an exciting future.All this was done within a trading environment of strong demand for our product in a strengthening iron ore market underpinning our expansion plans and enabling Fortescue to make a maiden dividend payment.
Fortescue share are currently trading at $6.88 on the Australian Share Market at the end of the trading week, up 1 cent.