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expectations High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/b8d93878-6817-11e6-a0b1-d87a9fea034f.html#ixzz4I3wt75si Australian iron ore miner Fortescue has shrugged off low commodity prices to more than double its full-year net profit, rewarding investors with a sixfold dividend increase. The company, which had previously flirted with breaching its borrowing covenants, on Monday said it had cut its net debt from $7.2bn to $5.2bn during the financial year to June 30. The miner said it would continue to pay off its debt from operating cash flow. More ON THIS TOPIC Vale and Fortescue forge iron ore pact Lex Fortescue — debt ore Lex Miners — in search of wiggle room Fortescue knocked by iron ore price slump IN MINING Miners sweat the big and small stuff BHP targets recovery after record loss BHP’s mini-Macondo Writedowns drag BHP Billiton to $6.4bn loss Get your essential guide to the impact of the UK-EU split every day by email. Exclusive to FT subscribers. Sign up now “They’ve done a good job of cutting their debt burden,” said Angus Nicholson, a market analyst at IG Markets in Melbourne. “They certainly will survive as a continuing entity.” Lower prices for the steelmaking raw material have piled pressure on the Australian iron ore industry. The price of ore with 62 per cent iron content fell 12.9 per cent in the 12 months to June 30, and had been down as much as 39 per cent at multiyear lows in December. But Fortescue was likely to be a beneficiary of a “steadily improving commodities environment globally”, said Mr Nicholson at IG. Last week BHP Billiton suggested commodities prices were no longer in freefall, offering investors some reason for optimism even as the world’s most valuable miner reported a record $6.4bn annual loss and cut its dividend 75 per cent. BlueScope Steel, the Australian steel producer, also reported full-year earnings on Monday, with net profit for the 12 months to June 30 up from A$136.3m to A$353.8m year on year. Revenue was A$9.2bn, up from A$8.5bn the year before. BlueScope offered a bullish forecast for its performance next year, saying first-half underlying earnings before interest and tax would be some 50 per cent higher than the A$340.4m it reported in the second half of its financial year through June 2016. Analysts at JPMorgan said BlueScope’s performance was “particularly strong”. Fortescue’s Sydney-listed shares fell 1 per cent to A$4.88 in early afternoon trading with the company’s strong performance already factored into the price. BlueScope’s shares were up 4 per cent at A$8.59. In the past year Fortescue and BlueScope have been among the str

As rumours continued to swirl that a bid approach could be around the corner, Ferrexpo maintained its advance up the mid-tier index last night after investors were told to bet on its long-term potential. The miner shifted forwards 25p to 499p, meaning its share price has gained more than 17 per cent in just six sessions of trading. Takeover speculation has played a part in this, with Vale and Rio Tinto – 25.5p ahead at 4,360 – among the names rumoured to be potentially interested, and the chitter-chatter was reheated by market gossips again yesterday. ADVERTISING inRead invented by Teads Ferrexpo was also driven forwards by Seymour Pierce after the broker initiated coverage with a "buy" recommendation and a target price of 569p. As well as citing the strength of iron ore, its analysts said that "with sizeable production increases in the medium- to long-term and one of the largest unexploited iron ore resources in the world, much of Ferrexpo's true value does not reside in its near term earnings".

Ophir Energy Plc with EPIC LON:OPHR had its stock rating noted as ‘Reiterates’ with the recommendation being set at ‘OVERWEIGHT’ this morning by analysts at Barclays Capital. Ophir Energy Plc are listed in the Oil & Gas sector within UK Main Market. Barclays Capital have set a target price of 225 GBX on its stock. This is indicating the analyst believes there is a potential upside of 88% from today’s opening price of 119.7 GBX. Ophir Energy Plc LON:OPHR has a 50 day moving average of 145.95 GBX and a 200 day moving average of 161.32 GBX. The 1 year high for the share price is 256.4 GBX while the 52 week low for the share price is 112.7 GBX. Ophir Energy Plc LON:OPHR is a United Kingdom-based oil and gas exploration company. The Company is engaged in the development of offshore and deepwater oil and gas exploration assets. The Company has a portfolio of exploration interests across East and West Africa. The Company’s assets include Equatorial Guinea, Gabon, Offshore Senegal and Guinea Bissau Joint Development zone (AGC) and Saharawi Arab Democratic Republic (SADR) in West Africa and Tanzania, Kenya and Somaliland in East Africa. In addition, the Company’s assets include West Papua IV, Aru, Kofiau and Halmahera-Kofiau in Indonesia. The Company’s subsidiaries include Ophir Services Pty Limited, Ophir Holdings Limited, Ophir Asia Limited, Ophir Ventures (Jersey) Limited, Ophir Ventures (Jersey) No.2 Limited and Dominion Petroleum Limited.

i agree with your analysis, however the price is so low and there is a **** load of cash in the bank then this must be an attractive price for potential predators we could see a further downside if the oil and gas price remain depressed, on my graphs this is showing a triple bottom at 115 i just hope the support is not broken at this level Considering the sale of just 20% off the asset in Tanzania for 1.288 billion dollars then this has got to be one of the most undervalued stocks on the market great cash balance in thebank great asset value underground share price bottoming three times at 115 interesting year ahead regarding the share price lets hope the management can deliver some positive news

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As many people are aware the shareholders have lost confidence in the management and as many others know the oil price is depressed due to the squeeze on russia which i am sure will not last to long sona offers $280 for 40% stake in bualang plus aditional money towards the successfull drill campaign pretty good deal puts the value of salamander bualang field $672 million west kerendan gas about to be supplied i believe revenue of in excess of $20 million/ annum starting point looking to double that over the next couple of years so lets just say value $100 million then we have to look at the assets and smaller field developments that are coming on board in fact lets miss them out why not everyone else is so total asset value for the sale of the company $772 less $200 million in debt is that fair value $570 million so as the management of this company are saying well done boys we have sucked the long term shareholders in totally devalued there holdings we now have great assets and a cash offer for 40% of one of our fields for £280 million not bad eh o wait a minute remember that guy that worked for us you know the guy who moved to ophir he has written to us and offered us wait for it a deal which values the company at $220 million tell you what lets tell the shareholders that this is great value afterall he has promised us good jobs great salaries and lots of shares as bonuses o wait a minute do we not have a duty of care for the shareholders to maximise the value of the company and indeed there investment ?

to the table then this could be interesting albeit i would much rather they did a counter offer then sold back the assets they dont wish to own

i agree we need a whitenight here the ophir offer is poor i think there will be developments this week i agree that ophir can add value to the share but this offer is for want of a better word p1shhhh

now we know the bench mark has been set SONA and Ophir know where roughly to pitch there price

out i am sure that ophir will seriously consider an all share offer 1:1 would be just fantastic cant wait till monday boys o and girls

climb again lets hope there is an offer this afetrnoon

starting the friday rise or could there be news on the way this afternoon volume is picking up as well gla

the oil price could fall even further though and it will not help in the sale of SMDR lets face it the fall is short term i reckon the USA has got the middle east on board and the reduction in oil prices really hurts russia when putin decides that he has lost enough and acts like a responsible government then we will see a return to normal worth the oil price in other words SMDR is gong to sold for a song and the biggest losers are the long term holders the best deal for the long termers has got to be a bid from OPHIR anything equivalent to 140 a share would be reasonable value that way SONA will not feel ripped off

this has seen the past few fridays have a bit of a kick upwards i am sure that as the information is feeding through to the mms then we will see a steady increase in the price gla

Is there a possibility that SONA will be back at the table only this time looking to take 100% control this could n=make the whole deal really interesting

I wonder with the price of oil falling then Cespa may struggle to raise the cash for this deal

you can only sell if there is a buyer and most of the orders went through this morning when the price was initially taken down to 102 if you were a market maker or an institution and were offered a bonus to help purchase shares at a price below 105 for example then a huge bonus with no risk would help you play the numbers game

well i believe that ophir will try to get smdr for as little as possible however as they appear to be offering an all share deal then this allows for a bit more of a premium on the price i imagine they are trying to force the hand of cespa to then pitch the price of the share offer cespa are nearly 12 hours behind us so they will see now the conditions that they are going to compete against i personally do not want the offers until later in the week i still think that we will see 115 without an offer being put in in the next few days but if there is a battle then we could see 210 lets face it the company is really undervalued and is sitting on some prime oil and gas fields in an area that requires a lot of power consumption anyway until tomorrow where aberdeen is my destiny for a few days GLA

the price is dropping on no news just means that the mms are trying to get yer shares

tidd our shares in salamander become redundant and we receive one new share in ophir instead therefore 100 shares in smdr = £105 our investment becomes 100 shares in ophir £190 new share certificates would be issued spread betting you will be given 85 points of an increase