Overview Of The Raw Material Mining Momentum Of Weather-resistant Boards Abroad

FMG Group, the world's fourth largest and Australia's third largest iron ore producer, announced its financial report for the first half of the 2013/14 fiscal year (second half of 2013). Net profit increased significantly by 260% to US$1.72 billion, reaching a record level. Revenue increased 77% to US$5.87 billion, and earnings before interest, taxes, depreciation and amortization (EBITDA) increased 184% to US$3.22 billion.

The sharp increase in FMG's net profit was mainly due to increased iron ore sales, relatively strong ore prices and large-scale debt reduction. After significantly increasing iron ore production, Fortescue's shipments increased by 51% in the second half of last year, reaching 53.9 million tons. The company is also accelerating its debt repayments, with stronger mining prices late last year also helping it repay debt accumulated during its expansion. The development and growth of raw materials for Q295NH weather-resistant board in the ore industry have played a strong role in the weather-resistant board market.

FMG used a large amount of borrowing to build land assets, energy and water infrastructure, railways and port facilities in the resource-rich Pilbara region of Western Australia, and achieved rapid development. However, when mineral prices fell sharply in 2012, the company was forced to urgently contact its lenders and has been working to rebuild its balance sheet ever since.

As the mining boom gradually cools down, Fortescue, like other large mines, has prioritized debt reduction and asset sales over the past year. It has also actively taken measures to reduce costs in an attempt to protect its profitability from the impact of falling commodity prices.

As of December 31 last year, FMG's net debt had dropped to US$8.6 billion from US$10.5 billion in the middle of last year. After the company repaid US$1 billion of debt in advance in November last year, it will repay US$1.64 billion in advance in March this year. Senior unsecured notes mature in 2015 and 2016, at which time the company's net debt will fall to $7.8 billion.

FMG's cash flow in the first half of the fiscal year surged to US$3.6 billion from only US$500 million in the same period a year ago, and capital expenditures fell from US$3.1 billion to US$1.4 billion. As the expansion project nears completion, capital expenditures will continue to decline this fiscal year. It is expected to be US$2.1 billion.