Checkout FMG quarterly report out today (all positive relative to last quarter, Cash on hand was US$863 million at 30 June 2018, but no mention of AGO):
BALANCE SHEET
• Cash on hand was US$863 million at 30 June 2018. Fortescue’s US$525 million Revolving Credit Facility remains undrawn.
• US$160 million of debt was repaid during the quarter completing the repayment and refinancing of the 9.75% Senior Secured Notes. Over the last 12 months gross debt has been reduced by US$0.5 billion due to the repurchase of the Solomon Power Station and repayment of the Senior Secured Notes.
• Gross debt reduced to US$4 billion at 30 June 2018 with net debt of US$3.1 billion.
• Fortescue’s balance sheet has been restructured on low cost, investment grade terms while maintaining flexibility for additional repayment and future growth with no repayment due until 2022.
• Annual borrowing costs have reduced by US$130 million following the refinancing and repayment of the high cost debt. One off pre-tax charges of US$213 million in cash costs and US$76 million of non-cash costs will be expensed in FY18.
• Total capital expenditure for the quarter was US$249 million inclusive of sustaining capital, ship construction, exploration and development expenditure bringing total FY18 capital expenditure to US$890 million.
• Iron ore prepayments remained unchanged at US$794 million at 30 June 2018. Amortisation of prepayments is expected to be US$270 million in FY19 with the balance in FY20.
AGO Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
