Fortescue Metals Group’s shares fell over 9% on Tuesday, reaching their lowest point in 21 months, following a discounted block trade valued at A$1.9 billion ($1.24 billion). The stock dropped to A$18.47, marking its worst session since June 2022 amid broader weakness in the mining sector.
The block trade involved shares offered at a variable price range of A$18.55 to A$19.10, reflecting an 8.8% to 6.1% discount compared to the last closing price. Fortescue did not comment on the trade, which was reported by the Australian Financial Review.
This sale represents about 3.2% of Fortescue’s total shares, with only four shareholders owning 3% or more, including founder and Chairman Andrew Forrest. The decline in Fortescue’s stock price has been exacerbated by the company’s announcement on July 17 regarding a scaling back of its green energy transformation plans due to high energy costs.