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- Fortescue Metals (FMG) shares slip after the company reports a 16 per cent dip in quarterly iron ore production over the three months to the end of March
- While the company’s year-to-date exports remain at a record high, iron ore shipments were down 6 per cent compared to the December quarter
- Further, FMG’s C1 costs were 2 per cent higher in the March quarter than during the first half of the 2023 financial year
- The mining giant ended the March quarter with a cash balance of US$4 billion (A$6 billion)
- FMG shares are down 2.75 per cent to $20.90 at 1:07 pm AEST
Mining giant Fortescue Metals (FMG) has reported a 16 per cent quarter-on-quarter drop in iron ore production over the three months to the end of March, mining 50.3 million wet metric tonnes (wmt) of ore.
This figure represents a 3 per cent dip compared to the company’s iron ore production in the March quarter of last year.
While FMG’s year-to-date iron ore exports remain at a record high, the company shipped 46.3 million wmt of ore over the March 2023 quarter — 6 per cent lower than the December quarter and largely flat compared to the March 2022 quarter.
Further, FMG’s C1 costs increased 12 per cent to US$17.73 (A$26.53) per wmt in the March quarter compared to US$15.78 in the same quarter last year
FMG CEO Fiona Hick said it was another “strong” quarter for the company, and today’s news followed the first production of wet concentrate from FMG’s Iron Bridge magnetite project last Friday.
“This is a significant milestone for Fortescue, as Iron Bridge represents our entry into the highest-grade segment of the iron ore market, providing an enhanced product range while also increasing production and shipping capacity,” Ms Hick said.
“It demonstrates our strong track record of successfully delivering complex projects safely.”
The mining giant has maintained its export and cost guidance for the 2023 financial year, claiming its strong performance means C1 costs are expected to land at the lower end of the guidance range.
FMG ended the March quarter with a cash balance of US$4 billion.
FMG shares were down 2.75 per cent to $20.90 at 1:07 pm AEST.
