The Fortescue Metals Group Limited (ASX: FMG) share price is racing higher in early afternoon trade.
This follows the company's release of its full-year results for the 2021 financial year.
At the time of writing, Fortescue shares are swapping hands for $21.21 apiece, up 6.05%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is sitting at 7,479 points, down 0.12%.
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How did Fortescue perform in FY21?
Investors are scrambling to buy Fortescue shares after the company achieved another year of record growth.
The world's fourth-largest iron ore miner reported an outstanding operating performance, driven by record annual shipments, higher realised prices and low-cost production.
Over the 12-month period, Fortescue delivered 182.2 million tonnes of iron ore, a 2% increase compared to FY20. Coupled with the average price of US$135 per dry metric tonne, this translated to a bumper revenue for the company.
Fortescue recognised the expansion of sales channels including increased sales through its China-based trading company, FMG Trading Shanghai. In addition, the continued strength in Chinese steel production supported the benchmark iron ore price.
In total, Fortescue collected US$22.3 billion in revenue, up 74% on the prior corresponding term.
Furthermore, its industry-leading C1 cost position of US$13.93 per wet metric tonne helped drive the company's bottom line. Net profit after tax came to US$10.3 billion, soaring 117% from this time last year.
Fortescue advised it had US$7.9 billion of liquidity at the end of June 2021. This comprised US$6.9 billion in cash on hand and a US$1 billion undrawn revolving credit facility.
Total debt stood around US$4.2 billion, inclusive of US$810 million of leases. The gross gearing ratio (total debt divided by the book value of equity) came to 19%. This indicates a good measure of a company's financial leverage.
Fortescue share price snapshot
Over the last 12 months, Fortescue shares have travelled in circles reflecting mediocre gains of just 10% for investors. This can be attributed to the spot price of iron ore, which rose strongly during the year, before falling in recent months.
Fortescue commands a market capitalisation of roughly $64.1 billion, making it the eighth largest company on the ASX.
