Ann: June 2024 Quarterly Production Report, page-78

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TonyIndo

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30/07/24

21:02

Post #: 74990150
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Originally posted by madamswer: ↑

"Each project is different because of their operating needs in different environments around the world. They’re working hard on making sure they get the right returns and if anyone knows what the IRR needs to be it's Fortescue . "

Can't disagree more.

The owners of the business need to know what the IRR is (even if only on a weighted average across all the projects being undertaken) on the capital being invested. After all, it is their money.

If FMG management know what the rate of return on invested capital will be, why don't they share that information with shareholders, along with the assumptions behind it?

"I'm not sure how that uplift in value can manifest itself in the financial performance of the company if FID's have only come through last year and up until this point the financial details haven't been provided? As they get through the FIDs they've got a lot of work then to get to financial close. They have mentioned many times that they will let investors know as soon as they get through those discussions."

Hang on a minute. You quoted them as far back as 2021 stating they are "actually acquiring" projects for X and adding 40-fold value to them (noting that the link that verifies that no longer exists on their website). To wit:

"In the transcript call below they highlighted that they're actually aquiring projects for $5000 per megawatt and then add value at say $200,000 per megawatt and that's even before a massive premium, that's a very impressive uplift in value - by 40 times!"
(Your words, not mine)

You made that sound like it is happening in real time; which is decidedly different to the relevant FIDs still being awaited, three years later.

" I have faith that they know what is best ...."

Yeah, absolutely no doubt about that.
The basis for doctrinal religions is also "having faith".

However, the problem is that the overwhelming majority of investors respect their capital too much to part with it on the basis of a "Just Trust Twiggy" level of faith.

It's your family's money though: so, worship away.

.

Expand

Fortescue said their target is for double digit IRR.

I have the patience to wait for the details and for the financials.

FMG Price at posting: $18.28 Sentiment: None Disclosure: Held
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Last $18.97		Change -0.300(1.56%)		Mkt cap ! $58.40B

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Ann: June 2024 Quarterly Production Report, page-78

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Ann: June 2024 Quarterly Production Report, page-78

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