FMG’s revenue in FY23 were 90.8% from iron ore, making this by far the purer bulk commodity play, but we do prefer BHP’s increasing copper exposure over the coming years. We’re also concerned around governance and their unqualified push into green energy – it’s hard to quantify the potential impact here when the company steps back from previously stated guidance on future expenditure. While FMG is definitely an option for income with the stock estimated to yield over 9% in the next 12 months, it is unlikely to show up in our portfolios.
- We do not hold FMG across our portfolios, preferring BHP for respective exposure.
MM is cautiously bullish on FMG into 2024, but we’re unlikely to own it
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