The Fortescue Metals Group Limited (ASX: FMG) share price is performing positively on Wednesday.
In morning trade, the mining giant's shares are up 2.5% to $14.40.
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What's going on with the Fortescue share price today?
Fortescue's shares are rising on Wednesday despite another pullback in iron ore prices on Tuesday night.
According to Metal Bulletin, the price of benchmark 62% fines fell US$7.66 or 7.4% to US$95.77 per tonne. It was a similar story for the low grade iron ore that Fortescue predominantly mines. The 58% fines iron ore price fell US$6.24 or 8.4% to US$67.70 per tonne.
However, it appears as though a pullback in the Fortescue share price on Tuesday afternoon had already factored this in.
But why are its shares rising?
Today's gain by the Fortescue share price could be due to growing interest in Fortescue Future Industries and its exposure to green hydrogen, as well as a delayed reaction to a bullish broker note out of Bell Potter yesterday.
In respect to the latter, according to the note, the broker has retained its buy rating but trimmed its price target to $19.75.
In addition, Bell Potter is forecasting a very generous $2.25 per share fully franked dividend in FY 2022.
Based on the current Fortescue share price, this suggests that there is potential for a whopping ~53% total return for investors over the next 12 months.
Why is the broker positive?
The note reveals that Bell Potter's analysts were pleased with the company's performance during the quarter and continue to see a lot of value in its shares at the current level. Particularly given its strong free cash flow generation, which it expects to support big dividends.
Bell Potter concluded: "Strong free cash flows, good cost control and an 'on-track' production performance emphasise the quality of the business and we retain our Buy recommendation."
The Fortescue share price is down 42% in 2021.
