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Lawsuit to Continue to Weigh Over Fortescue -- Market Talk

24 Jul 2017 1:13 am

0113 GMT - Fortescue (FMG.AU) is adding to last week's slide after a court ruling recognized indigenous people's exclusive rights to land the Australian iron-ore firm has a mine. The company will appeal, but for now the often-volatile stock is bogged down by "a bit of uncertainty on the cash they are able to generate and the ability to be a low-cost producer," notes Gary Huxtable at ASR Wealth Advisers in Melbourne. There's also dividend worries, he adds. Morgan Stanley estimates Fortescue may have to pay as much as US$100 million in royalties if it fails to get a reprieve. Shares fall 2%, underperforming a weak overall market, and after sliding 3.5% on Thursday. (kenan.machado@wsj.com)

(END) Dow Jones Newswires

July 23, 2017 21:13 ET (01:13 GMT)

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