Fortescue profits fall 88%, shares tank, Twiggy makes $20 million

Andrew

Billionaire mining magnate Andrew Twiggy Forrest just made about $20 million from the final year dividend from Fortescue Metals company.

The company’s share price is tanking, in a falling market, after posting a disappointing 88% drop in full year profit to $317 million from $2.7 billion the year before.

The stock was the biggest faller in the ASX200 today, closing down 14.62% to $1.635.

The pure play iron ore miner is still paying dividends — a fully franked two cents a share — despite the result.

This means that Forrest, the chairman, founder and owner of about one-third of the company, will get a cheque for about $20 million.

“This modest dividend demonstrates Fortescue’s confidence in the long term market for iron ore and ability to drive down costs to improve its position on the global cost curve,” Fortescue said when announcing the dividend.

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