Overview of Fortescue Share Price History
Fortescue Metals Group, commonly known as Fortescue, is an Australian iron ore company founded in 2003 by Andrew Forrest. It is the fourth-largest iron ore producer in the world, and the second-largest in Australia, after Rio Tinto. The company has been listed on the Australian Stock Exchange since 2003, and over the last two decades, its share price has seen a steady rise. As of 2023, Fortescue shares are trading at $17.40 per share, up from $1.62 in 2003.
The company's share price has been on a steady upward trajectory since its listing, with the share price rising from $2.10 in 2006 to $17.40 in 2023. Over the same period, the company's market capitalisation has grown from $1.3 billion to $26.3 billion. The company's share price has also been supported by a number of strategic acquisitions, including the purchase of Atlas Iron in 2017 and the acquisition of BC Iron in 2018.
Fortescue’s Performance in Recent Years
The company's share price began to rise in 2018, when the company announced its intention to double its iron ore production by 2025. This announcement was followed by a series of acquisitions, including the purchase of Atlas Iron and BC Iron, and the establishment of a joint venture with Rio Tinto. This allowed the company to increase its iron ore output and diversify its product portfolio.
In 2020, the company's share price rose to a record high of $18.36, as the demand for iron ore increased due to the pandemic. This was followed by a steady decline in the share price in 2021, as the demand for iron ore declined due to the economic downturn. However, the share price has since recovered and is currently trading at $17.40 per share.
Fortescue’s Growth Prospects
Fortescue is well-positioned for future growth, as the company is currently investing in its expansion plans. The company is also focusing on its planned production expansion, which is expected to double its iron ore output by 2025. This will provide a further boost to the company's share price, as the increased production will result in increased demand for iron ore.
The company is also investing in new technologies, such as autonomous mining and robotics, which will help the company to increase its efficiency and reduce costs. This will further improve the company's performance and share price in the future. Additionally, the company has also announced plans to diversify its product portfolio, which should further increase the company's share price.
Risks Involved with Investing in Fortescue
As with any investment, there are risks involved with investing in Fortescue. The company's share price is subject to fluctuations due to changes in the iron ore market. Additionally, the company is heavily dependent on the Chinese market, and any changes in the Chinese economy could have a negative effect on the company's share price.
The company is also exposed to the risks associated with its expansion plans. If the company fails to meet its production targets, this could have a negative effect on the company's share price. Additionally, any delays in the company's expansion plans could also affect the share price.
Conclusion
Fortescue has grown rapidly over the last two decades, and its share price has seen a steady rise since its listing in 2003. The company is currently investing in its expansion plans, which should further boost the share price in the future. However, the company is subject to the risks associated with the iron ore market and the Chinese economy, and any delays in its expansion plans could have a negative effect on the share price.