The Fortescue Metals Group Limited (ASX: FMG) share price surged 7% higher to $6.39 this afternoon despite the Pilbara-based iron ore miner releasing no specific news to the market.
For the half-year period ending December 31 2019 Fortescue posted a net profit of US$644 million on revenue of US$3,540 million, with basic earnings per share of US20.8 cents translating into A$0.308 cents in dividends.
This was a strong result on the back of an iron ore price that averaged just US$63.58 per tonne through July 2018 up to an average price of US$74.17 per tonne in November 2018.
While as at March 1 2019 the average iron ore price tonne had reached US$85.98 according to data provider Market Index, with the big iron ore price rises translating into a share price that has climbed 70% over just the last six months.
The other factor unfortunately supporting the share prices of Fortescue and other iron ore miners like BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are worries over falling iron ore supply out of Brazil after the tailings dam disaster in the country that reportedly killed at least 122 people.
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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.