FMG soaring on Iron ore U-turn

FORTESCUE Metals Group has nearly quadrupled its half-year net profit on the back of soaring iron ore prices, allowing the miner to sharply boost shareholder payouts.

Fortescue, the world’s fourth-biggest iron ore exporter, reported net profit $US1.22 billion ($A1.59 billion) for the six months to December 31, up from $US319 million a year ago.

Analysts had expected the company to report a half-year profit of about $US1.1 billion.

The gains have mostly come about because of a rally in iron ore prices, which had hit a decade low at the start of 2016, before then doubling in value during the year after stimulus measures in China boosted demand.