Fortescue Releases March Quarter Production Report

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According to Fortescue Metals, continued strong operating performance contributed to record year-to-date shipments of 132.9mt, 2 per cent higher than the comparable period in FY20.

Fortescue Chief Executive Officer, Elizabeth Gaines, said “Fortescue’s excellent operating performance continues to drive strong results, with shipments of 42.3mt in the third quarter contributing to a record shipping performance for the first nine months of the financial year. ”

“The commissioning of the Eliwana mine has contributed to an increase in both ore mined and processed during the quarter, despite the impact of significant rainfall across our operations in the Pilbara.”

The company also recently announced a focus on renewable energy, green hydrogen and green ammonia projects in Australia and internationally through ‘Fortescue Future Industries (FFI)’.

“Significantly, Fortescue announced during the quarter a target to achieve carbon neutrality by 2030, positioning us as a global leader in the battle against climate change. We have set out clear priorities for our pathway to decarbonisation, including the establishment of a green mining fleet through the development and assessment of hydrogen and battery electric solutions,” Gaines added.

Quarterly highlights from the asx announcement were as follows: 

  • Total Recordable Injury Frequency Rate (TRIFR) of 2.2 at 31 March 2021, compared to 2.1 at 31 December 2020 and 2.4 at 30 June 2020
  • Iron ore shipments of 42.3 million tonnes (mt), in line with record third quarter shipments last year. Year-to-date shipments of 132.9mt are 2 per cent higher than the comparable period in FY20
  • Average revenue of US$143/dry metric tonne (dmt) increased 17 per cent compared to the previous quarter with revenue realisation at 86 per cent of the average Platts 62% CFR Index
  • C1 cost of US$14.90/wet metric tonne (wmt) increased 16 per cent compared to Q2 due to seasonally lower volumes and the strength of the Australian dollar, with year-to-date C1 cost of US$13.45/wmt
  • Net debt of US$1.0 billion at 31 March 2021 after payment of the FY21 interim dividend of US$3.5 billion and capital expenditure of US$909 million in the quarter
  • Capital structure further optimised with the issue of US$1.5 billion Senior Unsecured Notes to refinance debt, extend the debt maturity profile and lower the cost of capital
  • Announced a revised target to achieve carbon neutrality by 2030, ten years earlier than the previous target
  • Guidance for FY21 shipments and C1 cost remains unchanged, with capital expenditure guidance revised to a range of US$3.5 to US$3.7 billion.

Source: ASX Announcement