Fortescue embraces the hope

Fortescue is out with a good result. With the market giving it 3%:

But from the annual report the following is woefully inadequate:

That’s the Fortescue assessment for iron ore prices. I know ore is going to bounce some time, perhaps soon, but this is ridiculously thin coverage of the primary risk facing the company.

Still, what’s a total lack of substance between friends. Check out the last line:

Aug. 23 (Bloomberg) — FY net income $1.56b vs est. $1.55b

(15 analysts, range $1.37b-$1.74b).

* Sales $6.68b vs est. $6.76b (19 analysts)

* EPS 50.06 cents vs est. 51.7 cents

* Final div 4 Australian cents vs BDVD est. A$0.04

* Co. sees FY13 total capex $6.2b; Sees FY14 indicative capex

$1.5b

* 18 buys, 1 holds, 2 sells; avg PT A$6.22 (upside 51%)

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.