I am always reluctant to use the words Bull Case, but I will stick my neck out here and say it for FMG.

AN ASX announcement for a partnership with Liebherr for Green Mining Haul Trucks. Along with the trillions that will be spent in the world to develop green energy, this quiet achiever is in a prime place to benifit through FFI.

https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02531985-4FMCFRNKAT8LP7SO8OLUP1NCM6/pdf?access_token=0007wQgIXKnyfQ6aWg0UJD2PIqHt

With the events in Europe there will be a lot of countries thinking about where their energy comes from. Noone will want to risk their energy requirements at the whim of a madman murderer, This will accelerate the move to alternatives, including hydrogen.

This is from an artice in Barron's by Goldman Sachs: September 2020

"Analysts at Goldman Sachs are bullish on the long-term prospects for so-called green hydrogen, which is when renewable energy powers the electrolysis of water. Calling it a once-in-a-lifetime opportunity, Goldman Sachs estimates the addressable market could be worth €10 trillion ($11.7 trillion) by 2050, split between Asia, the U.S. and Europe."

FMG through it's fully owned Fortescue Future Industries is a world leader in the development of Green Hydrogen. Andrew Forrest recently said: 3 rd February 2022

" Indian billionaire Mukesh Ambani, for example, has just announced plans to invest $75 billion in renewables, electrolysers and green hydrogen. The world is realising a new industry is about to dawn. I want Australia to do what it does best – lead."

It is going to happen. FMG has the funds, and most importantly the leadership with the vision and determiation to make it happen. I invest in FMG because of this leadership, and admire Twiggy as a businessman for what he has achieved.

Hi Remorhaz,

It is always good to read an alternative view. It is a shame when no positive alternative plan or action is laid out, other than attacking people. It shows what rock I must be living under as I had no idea who Mike Cannon-Brookes is. I find his negative ramble quite bizarre.

1776 Hydrogen was first identified as a distinct element by British scientist Henry Cavendish. For those interested in the history of hydrogen : https://www.altenergymag.com/article/2009/04/the-history-of-hydrogen/555/

In the 2021 FY FMG paid :

Govt Royality US $ 1.56 Billion Income Tax Expense: US $ 4.427 Billion. Total nearly US $ 6 Billion. Paid in Australia.

 $300 million in the Australian government’s Fuel Tax Credit for Heavy Diesel Vehicles. When, then, will Fortescue cease accepting this fossil fuel subsidy?

Mike Cannon-Brookes: In the 2020 year:Tech giant worth $50 BILLION pays NO Australian tax but says that's fair because of its spending on research - while founder's help for bushfire victims could also turn a profit

• Atlassian paid no income tax in Australia despite annual revenue of $1billion
• It argued that was because it claimed tax offsets for research and development 
• The software giant listed in the United States has a market worth of $A54billion

Co-founder Mike Cannon-Brookes wants more action on renewable energy  Tech giant Atlassian paid zero income tax despite taking in more than $1billion in revenue, tax records have revealed.Its Australian billionaire founders Mike Cannon-Brookes and Scott Farquhar are fond of telling the government how to tackle climate change.  The renewable energy they advocate is largely dependent upon tax receipts to fund government subsidies. Despite that, Atlassian - with a market capitalisation of $54billion - has not contributed to that revenue.The most recent figures from the Australian Taxation Office show Atlassian paid no income tax in 2017-18 despite having a taxable income of almost $138million from corporate revenue of $1.044billion.

In the Financial Review from 21st October, 2021 was the following article, once again, it had no substance as to what action they wete going to take. Andrew Forrest at least outlines a clear plan.

Mike and Annie Cannon-Brookes are raising the bar on climate investment, pledging to devote $1.5 billion of their personal wealth by 2030 to financial and philanthropic ventures intended to ramp up the urgency in cutting carbon emissions.

As a long term holder of Fortescue ,FMG, their move to establish Green Hydrogen is not just a pipe dream.

The current price of around $14.00 must surely be based on the iron ore value alone. From a previous video presentation by Andrew Forrest, he claimed the hydrogen part of the business will be as valuable as the iron ore business. Undoubtebly, two commodoties the world needs, iron ore, and green hydrogen. I regard FMG as a real investment, proven record, the funds, and more importantly the credability to promote the vision to world leaders.

For those interested, there is a link to FFI, Fortrescue Future Industries, website, and an extract from The West Australian newspaper. With COP26 in Glasgow there has been a lot of news about green hydrogen.

Link to FFI website: https://ffi.com.au/news/fortescue-future-industries-acquires-commercial-assets-of-xergy/

From The West Australian:

Andrew Forrest’s Fortescue Future Industries and Argentina unveil $11.2b green hydrogen hub ambitions

Nicolas Misculin and Agustin Geist Reuters Tue, 2 November 2021 8:25AM

Reply to NewbieHK re FMG.

I was lucky enough to "INVEST" in FMG in March, 2016. The following stats are from ShareSight on that investment:

151.57% Capital Gain p.a

115.01% Dividends p.a Fully Franked = Franking Credits

266.57% Total Return p.a 

Who knows what will happen tomorrow, let alone next year. If The whole world crashes everything will go with it, not just iron ore. Fortescue is also investing in hydrogen, positioning themself as not just one shot in the locker business.

Ben Graham from the Intelligent Investor said: you must aspire to "adequate", not exrtaordinay performance.

He also said on dividends: far from being an afterthought,dividends are the greatest force in stock investing.

Obviously he is refering to a well managed business, that can afford to pay a dividend, and those dividens are reinvested in other good investments. 

I think FMG at my cost price has been much more than adequate. I did not sell when I thought"wow" I have made a few bucks.

Have you heard the story about the old bull and the young bull? I will change the story slightly for the post here.

The young bull and the old bull were standing on a hillside looking at the prospects below. The young bull said, let's rush down and do a few things quickly. The old bull said, let's stroll down and do everything properly.

I have never made a quick killing from investing. it has always taken time. I have made some quick losses ! :-(

Fundamentals from Commsec closing last Friday.

• Market Capitalisation$47.231B
• P/E Ratio3.46
• EPS$4.433
• PE Growth-
• Debt to Equity24%
• Price to Book2
• 5 Year Beta0.88
• Margin Lending LVR65%
• View Financials

Dividends

• Most Recent$2.110
• Dividend Yield23.8%
• Franking100%
• Actual DPS$3.580
• Dividend Stability89.2%
• Ex-Dividend Date06 Sep 2021
• Pay Date30 Sep 2021

In One Up on Wall Street, Peter Lynch shows some of the best investments are in what we see in our everyday life. Things that might not be glamorous and surrounded by hype.  Big dirty dusty excvavators, loading big dusty haulers, but what an investment. Not a maybe, a might be or a gunneroneday. If the person cleaning the lunchroom at FMG had invested in FMG in 2016, just five years ago, they would have had a total return of around 900%. The total Fully Franked dividend this year alone would be more than the shares cost in 2016. Free shares, free money in the form of Fully Franked dividends. Thank you, FMG.

I see words like unicorn, and monster that we all like to find, I am happy with my rhinoceros, in FMG. What new investors want to do with their hard earned cash is up to them, but build in a solid base first, then when you start getting free shares and free cash, go hunting for the unicorns and monsters. Good luck. 

Fully franked final dividend of A$2.11 per share, increasing total dividends declared in FY21 to A$3.58 per share, equating to A$11.0 billion and an 80 per cent payout of NPAT

It is not only about iron ore.

Hydrogen too.

FMG has the funds to develop this, no IPO with a maybe, or possible capital raising along the way.

Fortescue Future Industries (FFI) is wholy owned by FMG. In the future FFI could be split from FMG, being a real bonus to shareholders. In the mean time shareholders get a fully franked dividend, with yield of 12.8%

Climate change is a real tailwind for this type of technology.

There is an article on ShareCafe this morning about WA as a hydrogen hub and a lot of the big companies are showing interest.

I hold, and regard FMG as a keeper.

From the FFI website :

Jul 29, 2021

Fortescue Future Industries (FFI) has entered into a framework agreement with JSW Future Energy Limited, a wholly owned subsidiary of JSW Energy Limited, to explore opportunities to develop green hydrogen projects in India. Under the agreement, FFI and JSW Energy will collaborate and conduct scoping work on potential projects relating to the production of green hydrogen and explore opportunities to utilise it for green steel making, hydrogen mobility, green ammonia and other mutually agreed industrial applications in India.

FFI CEO, Julie Shuttleworth said, “FFI’s goal is to become the world's leading fully renewable energy and green products company.

“Green hydrogen is going to be the disruptor in the clean energy space and in the near future we believe it will replace the fossil fuels used for various industrial applications as well as in the transportation and mobility sector.

This is a link from FMG regarding the Fortescue Future Industries. I would not have a clue how much value the hydrogen prospect might add to the value of FMG. With a dividend yield of 12.1 %  with a fully franked dividend, I only wish I could find another FMG.

FFI Delivers on Ambitious Stretch Targets

Agree Odlott, Iron ore price might fall. FMG is also involved with developing Green Hydrogen. In the mean time it is a real business, making real money, paying real dividends.

Money that makes money.

Fortescue joins forces with Hyundai and CSIRO to fast track development of hydrogen technology

Aug 20, 2020

Fortescue Metals Group (Fortescue) announced today that it has signed a Memorandum of Understanding (MOU) with Hyundai Motor Company (Hyundai) and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) to advance scientific collaboration and accelerate the development of renewable hydrogen technology.

The MOU outlines areas of cooperation that involve the development and future commercialisation of the metal membrane technology (MMT) which has been developed by the CSIRO, supported by a landmark partnership with Fortescue. Hyundai will seek to demonstrate the viability of the technology for renewable hydrogen production and vehicle fuelling in Korea. 

Fortescue has a portfolio of projects underway associated with renewable hydrogen production, storage and use, including:

• Entering a five year partnership with the CSIRO in 2018 for the development of new hydrogen technologies, including the MMT which provides the potential for the bulk transportation of hydrogen through ammonia 
• Construction of a renewable hydrogen refuelling facility at its Christmas Creek operations to support the deployment of a fleet of hydrogen fuel cell coaches from mid-2021 
• Partnering with ATCO Australia to build and operate the first combined green hydrogen production and refuelling facility in Western Australia, to support the transition to the next generation of zero-emission transport  

Fortescue Deputy Chief Executive Officer Julie Shuttleworth said, “This important strategic partnership with Hyundai and the CSIRO signals Fortescue’s ongoing commitment to the ramp up of a competitive domestic and global renewable hydrogen industry, to support the transition to a lower carbon future.   

“It builds on our investment in new hydrogen technologies that ensures Fortescue is well-positioned to meet the demand for hydrogen as both an export opportunity and to contribute to the decarbonisation of our operations in the Pilbara,” Ms Shuttleworth said.  

Hyundai Chief Innovation Officer Dr Young Cho Chi said, “This MOU will allow the realisation of the global supply of clean hydrogen, contributing to the successful transition to a hydrogen economy in Korea and Australia. This sets an example of the potential for a global hydrogen infrastructure business based on clean hydrogen.” 

CSIRO Executive Director for Environment Energy and Resources Dr Peter Mayfield said, “A domestic and export hydrogen industry will require a highly collaborative approach. We’re pleased to continue our partnership with Fortescue, alongside Hyundai, to ensure that hydrogen can play a role in supporting low emissions transport.