Join our daily newsletter At The Bell to receive exclusive market insights
- Fortescue Metals (FMG) has been making the most of the recent iron ore prices, setting new export records for both the quarter and the year
- For the three months ending June 30, the mining giant shipped 49.3 million tonnes of iron ore
- The company also set a new annual record of 182.2 million tonnes of iron ore shipped — two per cent higher than the year before
- FMG is now aiming to ship between 180 million and 185 million tonnes during the 2022 financial year
- Fortescue Metals is up 2.09 per cent to $26.35 per share at 10:46 am AEST
Fortescue Metals (FMG) has been making the most of the recent iron ore prices, setting new export records for both the quarter and the year.
For the three months ending June 30, the mining giant shipped 49.3 million tonnes of iron ore, representing a four per cent increase compared to the same period last year and a 17 per cent from the prior quarter.
The jump in exports was partly due to the ramp-up and integration of Eliwana, which helped to offset the impact of wet weather and continuing COVID-19 restrictions. As a result, Fortescue set a new annual export record of 182.2 million tonnes — two per cent higher than the year before.
Direct production costs for the fourth quarter were slightly higher at US$15.23 (A$20.67) per wet metric tonne (WMT), which the company said reflects inflationary impacts and additional costs associated with COVID-19.
For the full year, however, that figure fell to an average of US$13.93 (A$18.91) per WMT.
Commenting on the results, chief executive Elizabeth Gaines said the strength of the performance helped move the company from a net debt position of around $1.36 billion at the end of March to a net cash position of $3.66 billion as of June 30.
“This was an outstanding performance despite the impact of wet weather, as well as COVID-19 restrictions requiring many of our team members to remain on site for extended periods during WA’s lockdowns,” she said.
Looking ahead, Fortescue is now aiming to ship between 180 million and 185 million tonnes during the 2022 financial year, with direct production costs of between US$15 (A$20.36) and US$15.50 (A$21.04) per WMT.
“Together with our focus on investing in growth through the Iron Bridge Magnetite project and Fortescue Future Industries, we will continue to deliver strong results to ensure all our stakeholders benefit from Fortescue’s success,” Ms Gaines continued.
Fortescue Metals is up 2.09 per cent to $26.35 per share at 10:46 am AEST.
