The Fortescue Metals Group Limited (ASX: FMG) share price is coming under pressure today. This is despite the iron ore mining outfit providing a robust June quarterly performance last week.
At the time of writing, Fortescue shares are fetching $24.37, down 2.17%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is sitting at 7,497 points, up 1.4%.
What did Fortescue report?
Investors appear to be profit-taking after Fortescue shares hit an all-time high of $26.58 last Thursday.
The world 4th largest miner delivered record iron ore shipments of 49.3 million tonnes (mt) for the 3 months ending 30 June. This resulted in the company achieving 182.2mt for FY21, exceeding its guidance of 182mt.
Furthermore, Fortescue reported a record average revenue of US$168 per dry metric tonne (dmt) for the Q4 period. The strong iron ore price over the last year has resulted in the company averaging US$135/dmt for FY21.
C1 costs increased to US$15.23 per wet metric tonne (wmt), up 2% attributed to COVID-19 related expenses and inflationary impacts. For the year (FY21), C1 costs came to US$13.93/wmt, which was in line with the previous guidance.
Cash on hand stood at US$6.9 billion, with net cash of US$2.7 billion. Gross debt was reduced to US$4.3 billion due to the completion of the refinancing of the senior unsecured notes.
What do the brokers think?
After releasing its fourth-quarter results, a number of brokers rated the company with varying price points.
American multination investment bank, Morgan Stanley cut its price target for Fortescue by 0.5% to $18.55. Credit Suisse followed suit to also reduce their rating by 4.3% to $22.
The most recent broker note came from Goldman Sachs last week, which has initiated a price of $19.90 for the iron ore miner. This implies a downside of about 20% on the current Fortescue share price.
Fortescue share price snapshot
Regardless of Fortescue shares being lower today, over the last 12 months, its shares have rocketed 40% higher. When looking further back, the company's share price is up roughly 430% from this time 5 years ago.
Based on valuation metrics, Fortescue presides a market capitalisation of approximately $75.1 billion.
