The Motley Fool

Guess who made $500 million in 2 minutes?

Andrew ‘Twiggy’ Forrest’s paper fortune ballooned by $500 million this morning, after Fortescue’s share price surged, jumping 51 cents within the first 2 minutes of trading.

The company has secured a credit facility of up to US$4.5 billion that will be used to refinance all existing bank facilities and provide Fortescue with additional liquidity. As the owner of more than 1 billion of Fortescue Metals Group (ASX: FMG) shares, representing 32% of the company, Twiggy’s fortunes are closely tied to the company he founded. This could be the turnaround the company needs, while the spot iron ore price remains volatile.

In more good news, the iron ore price posted its second day of gains overnight, rising to US$105 a tonne. Although it’s still volatile, Fortescue, Rio Tinto (ASX: RIO), Atlas Iron Limited (ASX: AGO) and Mount Gibson Iron (ASX: MGX) will be watching the price on a daily basis.

Fortescue is now out of the woods from debt perspective, given the earliest it has to repay any debts is November 2015. Previously it had US$1.5 billion due to be repaid in December 2013. The news should make it easier for Twiggy to sleep at night, and will also give reassurance to other miners.

Last week, Fortescue had asked its lenders to waive all covenants on its debt for 12 months, as the low iron ore price could have seen the miner breach those debt covenants in December this year.

If you’re in the market for some high yielding ASX shares, look no further than our “Secure Your Future with 3 Rock-Solid Dividend Stocks” report. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

Motley Fool writer/analyst Mike King doesn’t own shares in any company mentioned. The Motley Fool’s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here’s the best part: we think there’s one ASX stock that’s uniquely positioned to profit immensely from this explosive new industry… taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more