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FMGAU is the fourth largest participant in the seaborne iron ore market behind Rio Tinto, BHP, and Vale with the majority of its sales going to China. FMGAU underwent a massive growth phase over 2012-2015. The firm spent $9.0 bn of capex to build out its infrastructure (rails & ports) and expand its production capabilities from 55 mtpa to 165 mtpa. The bulk of the capex was spent in FY12 and F1H13. FMGAU is operating at a run-rate of ~170 mtpa. Management's initiatives to improve safety, productivity, and efficiency include the introduction of autonomous haulage technology in the Chichester Hub, autonomous drilling, and a relocatable conveyor. These initiatives will be rolled out over a three year period with cost benefits expected to commence in the latter part of FY18, continuing through to FY20. (17 Sep 2018)

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Transcript: 2018 IG & Crossover Conf-Basics Panel

Transcript: 11 Dec 2018, 5:51 AM ET - We present a transcript of the Basic Industries Panel discussion given at the CreditSights Investment Grade & Crossover conference on December 4, 2018.
Focused

FMGAU: Lower F1Q19 Shipments, Same Guidance

Worth Watching: 29 Oct 2018, 10:24 PM ET - FMGAU (Ba1/BB+) shipped 40.2 mn wmt of iron ore including third party product, down 9% YoY and 14% QoQ. C1 cash costs increased 9% YoY and 8% QoQ to $13.19/wmt, due to higher overburden removal, scheduled maintenance, and higher fuel costs, partia ..
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FMGAU: A$500 mn Share Buyback

Worth Watching: 11 Oct 2018, 12:00 PM ET - FMGAU (Ba1/BB+) announced a 12 month on-market share buyback program of up to A$500 mn ($355 mn at current exchange rates), which follows the lead of its big-cap mining peers to increase shareholder rewards. Much of the deleveraging work to improv ..
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FMGAU F2H18: Pricing Weighs Down Results

Earnings Note: 21 Aug 2018, 6:01 AM ET - Not surprisingly, larger price discounts for FMGAU's lower quality iron ore negatively impacted results. 
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FMGAU: Record F4Q18 Shipments, Meets Guidance

Worth Watching: 30 Jul 2018, 9:59 PM ET - FMGAU (Ba1/BB+) revealed record shipment numbers in its production results and 7% lower C1 cash costs QoQ. FMGAU shipped 46.5 mn wmt of iron ore including third party product, up 4% YoY and 20% QoQ. C1 cash costs remained flat YoY but decreased ..
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FMGAU: Buys Stake in Atlas Iron

Worth Watching: 07 Jun 2018, 9:40 PM ET - FMGAU (Ba1/BB+) announced the acquisition of 19.9% of struggling Atlas Iron for A$56 mn at $0.04-$0.05/per share, derailing the proposed merger between Atlas Iron and Mineral Resources. The acquisition allows FMGAU to acquire prospective acreage a ..
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FMGAU: $1.275 bn Eliwana Project Approved

Worth Watching: 29 May 2018, 2:38 PM ET - FMGAU (Ba1/BB+): The BoD approved the three-year, $1.275 bn Eliwana Project. The Eliwana mine, which is also located in the Pilbara region of Western Australia, is expected to start up in December 2020 and will replace the aging Firetail operation ..
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FMGAU: F3Q18 Shipments Down, Costs Rise

Worth Watching: 24 Apr 2018, 10:09 PM ET - FMGAU (Ba1/BB+) revealed lower shipment numbers in its production results with an increase in C1 cash costs. FMGAU shipped 38.7 mn wmt of iron ore including third party product, down 2% YoY and 4% QoQ. C1 cash costs increased 1% YoY and 9% QoQ to ..

BHP: F3Q18 Production Results, IO Disappoints

Worth Watching: 19 Apr 2018, 11:36 PM ET - BHP (A3/A) posted mixed F3Q18 production results for the quarter that ended on March 31, 2018. WAIO iron ore production of 67 Mt on 100% basis came in below analyst estimates of 69 Mt. Iron ore production was up 8% YoY due to record production at ..

Basic Industries: 1Q18 In Review and a Look Ahead

Sector Analysis: 17 Apr 2018, 4:12 AM ET - We review the performance of the Basic Industries sector  YTD, comparing themes in our outlook with actual developments. We also talk about unexpected developments, and what we think will shape the balance of the year. 
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FMGAU: Guides to Weaker F2H18 Price Realization

Worth Watching: 27 Mar 2018, 2:06 PM ET - FMGAU (Ba1/BB+) reduced its price realization guidance to 65% of the average benchmark Platts 62 CFR index for fiscal year 2018, down from the prior guidance of 70%-75%. We estimate price realization will be ~62% in F2H18, given that the price rea ..
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FMGAU: $1.4 bn Bond Tender Early Results

Worth Watching: 08 Mar 2018, 8:51 PM ET - FMGAU (Ba1/BB+) announced the early tender results of its recent $1.4 bn tender offer. The company has agreed to purchase $447 mn of the aggregate principal amount of its 9.750% Senior Secured 2022s. The offer expires at 11:59 PM New York time on ..
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FMGAU: Rating Agencies Upgrade Unsecured Debt

Worth Watching: 05 Mar 2018, 9:30 AM ET - FMGAU (Ba1/BB+): Both Moody's and S&P upgraded the Australian iron ore miner's senior unsecured rating by one-notch from mid-BB to high-BB. The ratings upgrades reflect the lower secured debt in the capital structure, which will improve the recove ..
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FMGAU: Pass on the 5NCL Bond Offering

Worth Watching: 01 Mar 2018, 11:41 AM ET - FMGAU: The Ba2/BB rated pure play Australian iron ore miner plans to issue $500 mn in 5NCL notes. The initial price talk is 5%-5.25%. In conjunction with the proceeds from a new $1.4 bn term loan, the proceeds from the bond offering will be used t ..

Tronox: EU Pauses Review of Cristal Merger

HY Note: 28 Feb 2018, 4:52 AM ET - The EU Commission paused its review of the Tronox/Cristal merger until it receives additional information from the two companies.  Although some may be alarmed, it is a fairly regular component of the EU Phase 2 process.
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FMGAU: Prices and Dividends Pressure FCF

Earnings Note: 21 Feb 2018, 7:38 PM ET - We examine FMGAU's F1H18 results and take a look at the reasons for the rise in net debt. 
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FMGAU: F2Q18 Realizations Fall, Net Debt Jumps

Worth Watching: 30 Jan 2018, 8:25 PM ET - FMGAU (Ba2/BB) revealed lower shipment numbers in its production results, while further reducing C1 cash costs to a new record low. FMGAU shipped 40.5 mn wmt of iron ore including third party product, down 4% YoY and 8% QoQ. C1 cash costs declined ..

Iron Ore: China Stockpiles at Record Highs

Worth Watching: 22 Jan 2018, 9:22 PM ET - Iron Ore: Imports of iron ore into China remain elevated with port stockpiles at record levels. Stockpiles totaled 148.1 Mt at YE17 and are currently at 154.4 Mt as of last Friday. This follows a pattern from the 2016 winter period, when iron ore ..

Metals 2018 Outlook: Valuations Over Fundamentals

Sector Outlook: 15 Jan 2018, 9:19 PM ET - We analyze the broad trends within the metals & mining sector, delve into sub-sector developments, and then examine name-specific recommendations.
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FMGAU: Eliwana Project, Widening IO Discounts

Worth Watching: 08 Nov 2017, 1:44 PM ET - FMGAU (Ba2/BB) plans to develop the Eliwana deposit in the Western Hub region to replace the depleting production from the Firetail mine. Construction with a development cost of ~$1.5 bn may begin in 2H19 with first production the following year.  ..

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