Fortescue Metals Group

Mining company, Fortescue Metals (ASX:FMG) has announced its first half results to the sharemarket.

• Fortescue Metals Group Net Profit US$478 million, down 40 percent from US$801 million in the previous corresponding period.
• Revenue was $US3.301 billion, down 2 percent from $US3.357 billion.

Fortescue Metals (ASX:FMG) has sealed a $1.4 billion deal with Leighton Contractors (ASX:LEI) to deliver a five year full service mine management with a possible two year extension.

• The five year full service is for its Firetail iron ore deposit at Solomon in Western Australia's Pilbara region.

After facing debt turmoil Fortescue Metals (ASX:FMG)is awarded a new debt financing deal from Credit Suisse and JPMorgan.

• $US4.5 billion (AUD$4.3 billion) debt facility refinancing deal is underwritten by Credit Suisse and JPMorgan.
• SMH reports that Deutsche Bank's analysts estimated Fortescue now had available funds of $US6.7 billion after the deal.

Fortescue Metals (ASX:FMG) is seeing debt fears affect its share price on the ASX stockmarket. The shares closed yesterday at a three year low, down 48 cents to $2.99.

• Share prices fell as reports hit the market about Fortescue requesting waiver for all debt covenants for the next 12 months.
• After ASX stockmarket closed, FMG released an announcement:

Iron ore miner, Fortescue Metals (ASX: FMG) have released their full year financial results for FY 2012 to the ASX stockmarket.

• Full year net profit US$1.6 billion, up 53 percent.
• Record revenues $6.7 billion.
• operating sales revenue up 41 percent to $US6.7 billion ($A6.40 billion), last year: $US5.4 billion ($A5.16 billion).
• Iron ore mined: 60 million tonnes (up 46 percent)

Fortescue Metals (ASX:FMG) is raising US$1.5 billion in junk bonds to fund their expansion in iron ore operations in Western Australia to 155 million tons per annum (mtpa).

The securities issued by FMG are eight year notes at 8.25 percent interest and are callable after four years. The amount was raised by a subsidiary: FMG Resources (August 2006) Pty. Ltd. The previous expansion to 55 mtpa was completed in June 2011.

Fortescue Metals (ASX:FMG) chief Nev Power expressed his disappointment with the company's share price and is out to boost this price by ending scepticism.

Power said the price will rise when the sceptics have heard the iron ore miner's story. While he believes that the share price did well, he said it should have done better.

Newly minted Fortescue Metals (ASX:FMG) chief executive New Power is aligning himself with businesses against the Gillard government's handling of the economy.

He said the government should not focus on taxation alone, but it should also raise revenue through growth.

Fortescue Metals (ASX:FMG) and US equipment titan Caterpillar have teamed up to use automation at the miner's proposed Solomon iron ore mine. The two companies signed the agreement yesterday, with the participation of a Caterpillar dealer, WesTrac.