Hi
@Ferginator,
Cheers and no problem at all.
Where we're seeing significant progress in decarbonisation is in the mining sector.I believe short term new revenue streams are going to come from Fortescue’s key energy hubs worldwide for heavy haul and battery cells and electric vehicles.
Fortescue already have their Hazelmere hub in Perth and they've now opened two additional facilities, one in Kidlington and the other plant at Banbury in the UK. The Kidlington facility will focus on prototype development of power systems for multiple green mobility applications. The Banbury facility will focus on manufacturing heavy industry, zero emission battery modules and fully assembled power systems. Then there's the battery facility that will most likely open in the US soon. Remember they're working extremely hard and at speed to be a supplier to the mining industry. Adding to this will be the Elysia battery management software. Note, we are rapidly approaching 2026 and their own goals for their in-house operations is to have electrics trucks on site in just a few short years.
Now to answer your question...
Definitely not from the specific green energy projects at this stage. However there's two parts to this - the green energy projects AND the Fortescue Capital Platform component. The latter is what has a big question mark over it at this stage that hasn't been factored in and for good reason - we just don't know.
Here's what we do know...
*Fortescue Energy "revenue from external customers" came in at a multiple of 4 x 2022 ($26m). Revenue in 2023 was US$107m. Refer to page 116 of the Annual Report.
I'd like to see current revenue for this sub-segment increase at least 5 fold in their next Annual Report whilst keeping expenses under control as they too have been increasing, which is normal at this early stage of development. What's important is that they have all of this factored in their allocated budget/ guidance. I'd like to see them turn this to profit asap. What else is worth noting? Their Elysia Software product only launched in April 2023 and they already are getting customers onboard. One year has just about passed since launch, so it will be interesting to see what factor this plays into their overall plan.
Partnering with Liebherr for the development and supply of green mining haul trucks is the other significant and important new business opportunity where I see a new revenue stream opening up for both parties.
So in summary my thoughts on where I see short term new potential revenue streams opening up for Fortescue outside of their main Iron Ore segment...
1. Fortescue's WAE battery systems business segment.
2. Fortescue WAE Elysia battery management software platform.
3. The development and supply of green mining haul trucks via their partnership with Liebherr.
4. What hasn't even been factored in (for obvious reasons) is what Fortescue Capital official launch late last year will bring to the table short to medium term. I'll reserve my thoughts on this until we hear more on this front, but this could potentially be significant.
I'm not sure if this helps but just my thoughts.
Tony
(20min delay)
