Fortescue Metals (ASX: FMG) share price just jumped 3% this morning
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the Fortescue Metal Group Limited (ASX: FMG) the share price has jumped well in the green this morning since the market opened.
Shares of the iron ore mining and exploration company jumped 2.89% to a high of $ 24.23 just after the opening. However, they are down to $ 23.80 at the time of writing, up 1.06% for the day so far.
Let’s take a closer look at the Fortescue share price.
What has Fortescue been up to recently?
While no market-sensitive information has been released to explain the rise in Fortescue’s share price today, the company announced on July 6 that it had met the “lofty and ambitious goals” for its first decarbonisation projects.
Fortescue is studying the possibility of producing “100% renewable green energy”, setting decarbonisation targets and aiming to eliminate carbon emissions from its own operations.
A key element of the report was that Fortescue embarked on the “successful production of high purity (> 97%) green iron ore” during the initiative.
The tests also looked at the use of green waste to make green cement and successfully burned ammonia in locomotive fuel. Further tests are underway for the company’s transport trucks and ore carriers.
Speaking on the success of the trial, Fortescue CEO Elizabeth Gaines said:
At Fortescue, we are leading the heavy industry battle against global warming, moving from being a major importer of fossil fuels to a major exporter of green and renewable energy and products.
Regarding the company’s future in decarbonization, Gaines said:
At Fortescue, we are all committed to its decarbonization. Our great progress to date and our ongoing projects underpin Fortescue’s plan to become a major exporter of renewable energy products and industry. As part of this plan, we aim to meet or exceed our industry-leading internal goal of achieving carbon neutrality by 2030.
Iron ore prices have also been a key factor in the growth of the Fortescue share price over the past year. The price of iron ore has skyrocketed from around US $ 100 per tonne to around US $ 218 per tonne today.
Fortescue sits near the top of the iron ore production matrix, being one of the largest iron ore producers in the world. As such, significant increases in the price of the commodity are great news for the bottom line of the business.
Analysts Macquarie have an outperformance rating on Fortescue shares, citing a price target of $ 27 that correlates with the booming iron ore markets. This target implies a potential increase of 13% compared to the current share price.
Fortescue Share Price Snapshot
Since the start of the year, the Fortescue share price has returned approximately 1.5% and has posted gains of 62% over the past 12 months.
The gains were lower than those of S & P / ASX 200 Index (ASX: XJO) since the start of the year (11%), but has exceeded its returns by 23% over a 12-month period.
At the current market price, Fortescue has a market cap of $ 73.2 billion and is trading at a price / earnings (P / E) ratio of 8.4.