Last week, in an unexpected move, Chief Executive Officer Fiona Hick resigned from the world’s fourth-largest iron ore producer after less than six months in the role. Two more senior leaders in the group were soon gone, including Guy Debelle, the high-profile former deputy governor at Australia’s central bank, raising difficult questions that are now dominating post-earnings meetings between Fortescue executives and investors.
Fortescue has declined to comment on the meetings or specific concerns, but Forrest himself has brushed worries about exits or China’s property sector aside.In an interview with Bloomberg this week, he cited the need for focus as the company tries to reinvent itself: “They were good people, but we need constant alignment of interest,” he said. “It’s difficult to grow a new industry, and it’s difficult to break into a new industry while you’re growing.
Fortescue’s shares have fallen about 7% since their close on Aug. 25, ahead of Hick’s resignation and annual profit figures dented by China’s disappointing post-Covid rebound. Bloomberg wasn’t immediately able to reach Morris or Hick. In a LinkedIn post, Hick said: “I have valued the experience at Fortescue and I thank the company and its people for the opportunity.” Debelle, who was CFO of the energy arm, declined to comment on the reasons for his departure.Forrest is an Australian mining heavyweight with a storied history.
And yet, along with annual results, Fortescue dropped a policy to allocate 10% of earnings to the green-energy arm. Now, metals and energy projects will compete for capital on an equal basis.The firm’s reputation for capital discipline seems to have “gone out the window” with the green-energy push, said David Coates, analyst at Bell Potter Securities Ltd. Jefferies Inc.
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