What happened to Fortescue’s share price?
After a 9.3% rise in its share price yesterday, Fortescue Metals Group [ASX:FMG] gained another 5.8% today. FMG has risen for four straight sessions, gaining 20% after trading opened at just below $2.00 on Tuesday morning.
Why are FMG shares rising?
The positive sentiment has carried over, after yesterday’s report that FMG’s December quarter iron ore exports were better than analysts had expected. FMG said that the rise in exports, plus a focus on slashing costs, will help offset the lower iron ore price.
What now for Fortescue Metals Ltd.?
Fortescue have maintained their full year production and shipping guidance, and continue to expect a 17% rise in full year 2015 earnings.
The company has cut its full year cost guidance by 9%, saying that lower freight costs this quarter would further improve its margins. The company believes that productivity gains can still be found at its Pilbara operations, and has dismissed suggestions that it is considering mine closures.
FMG reports its half-year earnings results on February 19.
for Markets and Money