AUST'S FORTESCUE METALS GROUP POSTS SEPT LOSS AFTER ADJUSTMENTS

Fri. October 16, 2009; Posted: 05:59 AM

SYDNEY, Oct 16, 2009 (AsiaPulse via COMTEX) -- FSUMF | Quote | Chart | News | PowerRating -- Fortescue Metals Group Ltd (ASX:FMG) has reported a net loss of $US18 million for the September quarter after adjustments for foreign exchange and a note liability.

The iron ore miner, which has switched to reporting in UD dollars from Australian dollars in 2009, said in a special purpose financial report that the result compared to a restated profit of $US99 million for the prior September quarter.

Fortescue said the net result was partly due to a $US68 million increase in the value of its Leucadia Note liablity and a $US25 million foreign exchange adjustment.

Gross profit for the September 2009 quarter was $US151.6 million, down from a restated $249.4 million.

Fortescue said it was obliged to review the note valuation at each reporting date and the increase in projected liability came due to an independent expert's forecast rise in future iron ore prices.

The iron ore producer exceeded expectations for its shipped ore in the September quarter, and predicted the market for the valuable commodity will tighten.

The West Australian iron ore miner shipped 9.53 million tonnes (Mt) in the three months to September 30, up from 7.98Mt in the June quarter.

On an annualised basis production was 38Mt per annum, compared to the 35Mt a year forecast.

Fortescue said it hoped to spend $360 million to ultimately expand production to more than 50Mt per annum by upgrading its Christmas Creek mine.

Fortescue reported in August an annual net profit for the year ended June 30 of $US508.04 million ($A609.45 million), compared to a loss of $US771.77 million ($A925.83 million) previously.

(AAP) lm

For full details for FSUMF click here.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.