Despite controversial murmurs of company-led spying, the Fortescue Ltd (ASX: FMG) share price is moving with a spring in its step today.
In afternoon trade, the iron ore miner's shares are up 3.5% to $22.70. However, the exuberance is not isolated to the mining company Andrew Forrest founded in 2003. As this is being written, materials are leading the Australian share market, climbing 2.26%.
Yet, today's rally is somewhat shrouded in contention as details of an investigation emerge.
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Money spent on spies
In June, Fortescue launched legal action against Element Zero, a green metal startup started by former Fortescue employees Michael Masterman, Bart Kolodziejczyk, and Bjorn Winther-Jensen.
The case alleges that the ex-employees smuggled green iron intellectual property out of Fortescue and applied it at Element Zero, committing "industrial-scale misuse." As such, Wither-Jensen and Kolodziejczyk have been the targets of an investigation to substantiate these allegations.
According to newly released court documents, Fortescue hired private investigators to 'spy' on its former employees (Wither-Jensen and Kolodziejczyk) and their families to obtain information needed to issue search warrants.
Fortescue hired the investigators, who followed the two executives, locating and photographing their homes, wives, and children.
The court documents show surveillance at Kolodziejczyk's family home continuing after the Element Zero co-founder departed from the Melbourne airport, with the investigator's notes reading:
In the meantime, surveillance continues at the Hadfield, Victoria residence, where Dr Kolodziejczyk's wife and child are permanently residing.
Following the surveillance, both former employees were subjected to raids on their homes. The Element Zero co-founders were required to relinquish passwords to their devices — including those of their family members — for copies of their data to be taken.
Both men completely reject the claims made by Fortescue.
Iron ore reignites Fortescue shares
Fortescue investors seem to be more focused on the price of iron ore, with shares rallying today.
Following a rough month in June for the steel-making commodity and Fortescue shares, prices have been on the uptick this month. Iron ore is fetching around US$110 per tonne, rising nearly 4% from late June.
The revitalisation arrives amid stimulus measures announced by Beijing to support its struggling property sector. As part of the measures, people in China will see mortgage interest rates and the minimum down payment reduced.
Fortescue shares are closely linked to China's property market. In 2022, approximately 88% of the company's revenue was derived from the People's Republic.
