ASX 200 surges to new record, Fortescue drops, Inghams flies higher

The S&P/ASX 200 Index (ASX:XJO) jumped higher today. However, the Fortescue Metals Group (ASX:FMG) share price fell after an update.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) hit a new record today, it ended up 1.2% to 7,180 points.

Here are some of the highlights from the ASX:

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price ended the day lower by 0.7% after giving investors an update.

Fortescue gave an Iron Bridge update saying that it's on track to deliver 22 million tonnes per annum of high grade 67% Fe magnetite concentrate product with first production by December 2022.

The miner has made an investment to provide an enhanced product range and increase production and shipping capacity to meet strong customer demand.

Fortescue has revised its capital estimate to US$3.3 billion to US$3.5 billion, with FMG Iron Bridge Ltd's share being US$2.5 billion to US$2.7 billion.

The joint venture has incurred capital expenditure of US$1.5 billion as at 30 April 20021, with FMG Iron Bridge's investment being US$1.3 billion.

Fortescue said that the 67% Fe content low impurity concentrate product is anticipated to receive a premium to the Platts 65% Fe CFR Index.

The miner believes it will have a competitive cost structure with the life of mine C1 cost estimate being US$33 to US$38 per wet metric tonne (wmt) and sustaining capital expenditure of US$5 to US$7 per wmt.

Inghams Group Ltd (ASX: ING)

The Inghams share price went up around 8% after saying to investors that it expects to beat the market's profit expectations for FY21.

Inghams said that it's deriving benefits from operational efficiencies implemented throughout the year.

There has also been an improvement in general trading conditions as the impact of COVID-19 restrictions have decreased over the last six months, although that excludes the seven-day lockdown has just started in Victoria.

The ASX 200 share said it also received a research and development tax credit relating to a prior financial year.

Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to come in between $438 million to $448 million. Statutory net profit after tax (NPAT) is expected to be between $80 million to $87 million.

To enable comparison to pre AASB 16 figures, Inghams said underlying EBITDA is expected to be between $203 million to $213 million and underlying NPAT is expected to be between $96 million to $103 million.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price was one of the best performers in the ASX 200 today, going up more than 4%, after confirming it has received a takeover offer for its PEXA shares from KKR.

The proposal represents an enterprise value for 100% of PEXA at $3 billion plus cash on the balance sheet as at the date of settlement. At 31 March 2021 the cash balance was $126 million.

KKR said the offer is open and can be accepted until 5pm on 30 May 2021. Domain Holdings Australia Ltd (ASX: DHG) is expected to partner with KKR.

The Link board is now considering the proposal. No decision has been made yet. Both the trade sale process and exploration of the viability of an IPO continue to proceed.

Tristan Harrison owns shares of Fortescue Metals Group Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Person pointing finger on on an increasing graph which represents a rising share price.
Broker Notes

These ASX shares could rise 20% to 30%

Big returns could be on the cards for buyers of these shares according to analysts.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Broker Notes

All about the momentum: Which ASX 200 stocks does Macquarie currently favour?

These stocks have strong positive momentum.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

CBA shares hit another all-time high. Can they surpass $200 in 2025?

CBA shares have a tailwind pushing up their price that has nothing directly to do with the bank's business performance.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Alliance Aviation, Cogstate, Collins Foods, and Findi shares are roaring higher today

These shares are having a good session on Tuesday. Let's find out why.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why APA, DroneShield, EOS, and Woodside shares are tumbling today

These shares are missing out on the good times on Tuesday.

Read more »

Woman checking out new iPads.
Broker Notes

'Lock in profits at these levels': Expert's verdict on 2 ASX 200 shares

Tony Locantro of Alto Capital says it might be time to take profits on these high-flying ASX 200 shares.

Read more »

asx share price growth represented by hand holding hourglass surrounded by dollar signs
Opinions

'Patience isn't passive': Expert reveals 2 ASX shares his team won and lost on

They say patience is a virtue. This asset manager says it can also determine your investment success.

Read more »

A pilot stands in an empty passenger cabin smiling with his arms crossed looking excited
Travel Shares

Virgin Australia shares take flight on ASX return after IPO

The airline's long-awaited return has started strongly.

Read more »