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Fortescue Metals Group (FMG) reported a 49 per cent increase in full-year net profit in FY2020....

Fortescue Metals Group (FMG) reported a 49 per cent increase in full-year net profit in FY2020. How much was this profit and what explained the increase in profit of 49%?

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Answer #1

Fortescue metals group reported a 49% growth in earnings because of elevated iron ore price all across the world and the group was able to report a higher amount of net profits and due to lower cost in operations also it has a leverage of reporting higher profits that can be said that due to the increased cost of iron ore & fortescue metals group was able to report a higher growth in profits.

Fortescue metals group total revenue was above 11 billion dollars and it started to report earning of around more than 1 billion dollars which led to surge in the share price

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