AAP reported that Fortescue Metals Group shares are heading towards a 6 month high after breaking through USD 5 amid global optimism and an increase in the iron ore price.
The Pilbara focused iron ore miner closed 2.4% higher at USD 5.04, ending speculation about its profitability in the wake of weak commodities prices last year. It was the first time the stock had closed above USD 5 since July 4th last year.
Enthusiasm for debt laden Fortescue comes a week after it announced work would resume on expanding the Kings deposit at its Solomon iron ore mining hub this month after a rebound in commodity prices.
Mr Nev Power CEO of Fortescue said that the company would extract an extra 40 million tonnes per annum of iron ore from Kings, allowing it to reach its total production target of 155 million tonne per annum by December.
Recently, iron ore reached USD 144.90 a tonne, almost 70% higher than the USD 86 it fell to in September 2012. In line with the depressed iron ore price at the time, Fortescue's shares reached a low of USD 2.97 that month. The stock has gained almost 30% over the past month.
Source:
http://www.steelguru.com/raw_material_news/FMG_share_climb_continues/297179.html
