Fortescue Metals Group (ASX: FMG) is one of the few huge success stories from the hundreds of listed explorers on the ASX, and today turned in a US$314 million net profit, and started paying dividends to the tune of $0.03 per share.
A decade ago Fortescue was closer to a 'penny dreadful' stock, and has grown into a $21 billion goliath after a meteoric rise in the company's share price after a decade of sensational drilling results and strong management.
Many investors have already forgotten about the one for ten stock split the company had to undertake in late-2007, as the share price skyrocketed towards $100 a share, with the split aimed at increasing liquidity into the stock.
Today's interim highlight is not just the underlying EBITDA of US$1.3 billion, on total revenue of US$2.5 billion, but the fact that the balance sheet now provides a springboard for a massive expansion.
The Fortescue plan is to become a 155 million tonne annual producer, almost three times the current 55 million tonnes.
The funds have already been approved for the capital expenditure, with an US$8.4 billion thumbs up from the board.
Fortescue remains very well funded, with US$2.4 billion cash on hand.