FMG released its financial performance report for the fiscal year 2020-2021 (June 30, 2020-July 1, 2021). According to the report, FMG’s performance in the 2020-2021 fiscal year reached a record high, achieving sales of 181.1 million tons, a year-on-year increase of 2%; sales reached US$22.3 billion, a year-on-year increase of 74%; after-tax net profit reached US$10.3 billion, a year-on-year increase 117%; dividend of 2.62 US dollars per share, an increase of 103% year-on-year; operating profit and operating cash flow achieved the best results in history.
From the perspective of financial performance, as of June 30, 2021, FMG has a cash balance of US$6.9 billion, total liabilities of US$4.3 billion, and net cash of US$2.7 billion. In addition, FMG’s main business net cash flow for the 2020-2021 fiscal year was US$12.6 billion, a year-on-year increase of 96%, reflecting the growth of potential EBIDTA (earnings before interest, taxes, depreciation and amortization).
For the 2020-2021 fiscal year, FMG’s capital expenditure is 3.6 billion U.S. dollars. Among them, 1.3 billion U.S. dollars was used to maintain mine operations, mine hub construction and renovation, 200 million U.S. dollars for exploration and research, and 2.1 billion U.S. dollars for investment in new growth projects. In addition to the above project expenditures, FMG’s free cash flow for the 2020-2021 fiscal year is 9 billion U.S. dollars.
In addition, FMG also determined the guidance target for the 2021-2022 fiscal year in the report: iron ore shipments will be maintained at 180 million tons to 185 million tons, and C1 (cash cost) maintained at $15.0/wet ton to $15.5. /Wet ton (based on AUD/USD average exchange rate of 0.75 USD)