Fortescue Metals Group Limited (FSUGY)

Holding up pretty well a little under water on a smaller holding of RIO. My MLP’S up high twenties YTD.
With great income. This is a very unusual time, my word for the “Market” is Wonderland as in Alice.
Up is down Down is up. FSUGY will be just fine but I highly recommend Natural Gas MLP’S.
EPD is the safest but ET is moving higher.
Best Luck to All
John

Nice day in my Stagfolio, everything up. Investing in only HARD ASSETS Companies with solid dividends/distributions has been a great solution for this difficult time we are in. The only advantage
to being old I did Stagflation and fought it with youth and smarts, not having. either this time around
I had to rely on knowledge and experience to retreat to only safe investments last year.
Best Luck
John

I bought more today with my dividends and some other dividends. November is a great distribution income
month for me and I will continue to buy. I rode 200 shares all the way down. I now have 410 I will continue to buy to increase my holdings to at least 1000 I hope to get my basis under $25.00 or less.
The turn has happened and although they may not get back to $40.00 for a long time they will go up.
China will not keep their steel mills closed and risk permanent market share loss and will settle for a partial
victory in reducing Iron Ore input cost. Fortescue will obviously use this period to diversify their customer
base as much as possible. Being the lowest cost producer they of course will take share from the three larger
but higher cost mines. This reminds me very much of the period after the crash in 2020 I had great distribution units one got down to a $1.68 a unit and paid $.66 distribution unreal. Of course this is not a
universal crash just a strategic attack on the Iron Industry but the opportunity is huge.
I know these boards have agenda driven statements, that’s not me, I sincerely want everyone to do well
I have been blessed to even be functional.
I hope my ramblings help anyone, as a kind soul helped me about the $1.68 shares I paid $9.00 for which
ended today at $8.44: it still pays $.66 but if you bought and bought at 2,3,4,5,6,7 it does add up.
He told me they are a solid company not going away buy all you can.
The time to buy is when it’s down of course it could dip lower but it will recover over time.
Best Luck to All
John

@Katerina @John. John first, people are very excited about this company and if you watch the trading on the home Australian symbol, FMG.AX, you will be astounded by the volume. I too was very perplexed over the last year with the lack of trading on our U.S. ADR, FSUGY or the other one that represents only one share of the Aussie ordinary shares. I can't wrap my mind around how big institutional investors trade in the Aussies shares but I assume they have Aussie trading accounts. This was my largest single holding until the price collapsed mid year. So I not only lost a lot of face value, but I also got nervous and sold 25% of what I owned. I still have enough to where if it came back into mid 30's, it would still be my largest holding. So Katerina, I have been confused how we can be the lowest cost producer with a low grade iron ore. I am clearly able to do that math. It must be that we have lower mining costs and shipping costs, but the product itself is not high grade. Who has the best quality and is it good enough to offset their higher production costs?? Last but not least, I also own quite a bit of South 32, which is basically an Aussie Aluminum producer and secondly has huge Manganese reserves and production. Also, S32 recently got into copper in Chile in a big way! So there is no overlap with these two companies at all. For instance, I would never buy VALE in addition to FMG. Your thoughts on SOUHY?? Katerina, I gather that you think he is going to use a lot of our Iron ore cash flow to fund the whole Green Ammonia / Blue Hydrogen plan? I am neutral on it. I value your thoughts on that as well.

For all of you below discussing FMG future dividends and future hydrogen production. There will be billions in build out costs for hydrogen production facilities. Here is my rub. Where is all this hydrogen capital coming from? I really wish he would have retained even half of that $10 billion payout last month. It would simply be insane to borrow money to build out hydrogen facilities when we had it sitting in the bank. Instead, he pays it all out to us and then announces this entire new expensive plan. I am all for the hydrogen plan, I just want to use iron ore money to do it, not bank money or new bonds.

I completely forgot about FSUGY ex date, just realized I will see nice cash in April.
Have been recommending this to my friends on MLP boards, similar strategy.
High hard assets nice cash income. Would push even harder my own investment if not for China.
I was steadily adding then Schwab started charging $6.95 per transaction so no more 4 share purchase’s.
Much less the occasional 1 bought quite a bit that way. Definitely in my open to buy range as cash flows
in.
Best Luck
John

On the plus side-Under statistics: Low P.E. of 5.83, 52 wk. change 108.68%, high R.O.E. of 31.35%, (yoy)Q.R.G. of 100.3%,
(yoy) Q.E.G. of 1184.3%. These are AMAZING NUMBERS!

On the minus side-Under Historical Data: Annual Stock closing price 12/01/2014 $4.45, 2015 $2.68, 2016 $8.38, 2017 $7.64,
------------------------------------------------2018 $5.95 and currently @about $12.00/share. Add to these the irregular dividends,
there is a lot to be desired.

For the current and next year, at the least, a quarterly dividend of $0.30 or a semi annual of $0.60 should go a long way to prove the validity of the "statistical" estimates of the company's growth to be trusted.

Currently owns 5k shares and FSUGY may soar again to a higher level (imho).

The Chinese are sharp, tough and ruthless; they are gaming several things to reduce their cost going forward.
Iron is definitely one. I added a little FSUGY to lower my basis and will add more as some of my distributions come in. Fortunately my first purchases were under $35.00.
Would any long term holders have some thoughts to share as to dividends stability.
Regards
John