Chinese miners are killing Fortescue Metals

The celebrated ‘new force in iron ore’ is bleeding. Iron ore prices have fallen from peaks of US$180 a tonne to just over US$60 a tonne and savaged Fortescue Metal’s share price, which has fallen from $6 just 12 months ago to about $2 today. With net debt of over $9bn and a shrunken market capitalisation of just over $6bn, things appear grim for the one time market darling. It isn’t just that iron ore prices have fallen or that Fortescue carries comparatively more debt than just about any other producer. The real problem bleeding the business is the refusal...

The celebrated ‘new force in iron ore’ is bleeding. Iron ore prices have fallen from peaks of US$180 a tonne to just over US$60 a tonne and savaged Fortescue Metal’s share price, which has fallen from $6 just 12 months ago to about $2 today.

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