Fortescue Metals Limited
(ASX:FMG) has defended share price activity on Monday 8th March in response to an ASX aware letter.
The miner said share price movement was consistent with iron ore market and futures trading, together with the high level of short trading in Fortescue shares.
Fortescue shares soared 23.7 percent on Monday to $3.08. The activity came ahead of an announcement on Tuesday morning of a memorandum of understanding with Brazilian miner Vale.
Fortescue said that both companies had agreed to work together on the terms of separate but complimentary stock exchange releases and were in the process of doing so. The company added that these releases would have been issues either to forestall or in response to media speculation which could or might create a false market.
Fortescue Metals recorded a net profit of $436.62 million at 31 December 2015.
