Fortescue – FY19 Earnings Result

Fortescue Metals Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

The FY19 earnings result was solid with underlying EBITDA US$6b, the strong result helped to drive down net debt to US$2.1b which reflects a gearing ratio of 16%.

A final dividend of A$0.24 was declared, lifting the full-year payment to
A$1.14, translating to a yield of 16%.

Volatility in spot iron-ore prices continues to be a key driver of the share price.  Iron ore futures are now trading at their lowest price in more than six months.

Note: RIO at $83 is now on our watchlists and we suggest tracking the short-term indicators for a reversal higher.