PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported record iron-ore shipments in both the June quarter and the full year ended June.
The ASX-listed miner on Thursday reported that iron-ore shipments in the June quarter reached 49.5-million tonnes, up 6% on the previous quarter, while iron-ore shipments in the full year reached 189-million tonnes, a 4% increase on the previous financial year, exceeding the top end of Fortescue’s guidance.
The miner noted that the 2022 financial year represented the third consecutive year of record shipments, reflecting strong performance across Fortescue’s entire supply chain and the successful integration of the Eliwana operation, which commenced operations in January 2021.
CEO Elizabeth Gaines told shareholders that the record results were achieved in a challenging operating environment, owing to the impact of Covid-19 throughout the financial year.
“Despite industry-wide and global headwinds, Fortescue’s unique culture and values have delivered these exceptional results and I am immensely proud of the performance of the team,” said Gaines.
C1 costs for the quarter was also up by 9%, to $17.19/t, and by 14% in the full year to $15.91/t, while average revenue for the quarter reached $108/t, and $100/t for the full financial year.
The higher costs during the fourth quarter of 2022 were owing to higher diesel costs, labour rates and higher costs of other consumables.
Meanwhile, the company on Thursday noted that total capital expenditure (capex) for 2022 reached $3.1-billion, including the investment in the Iron bridge magnetite and Pilbara Energy Connect (PEC) projects.
The company also made significant progress on decarbonising its mining fleet through a strategic partnership with Liebherr for the development and supply of green mining haul trucks.
“Fortescue continued to significantly advance its decarbonisation objectives in the quarter, as evidenced by the strategic partnership with Tier 1 global equipment manufacturer Liebherr for the development and supply of zero emission green mining haul trucks. The agreement leverages the capabilities and value created through Fortescue’s acquisition of Williams Advanced Engineering,” said Gaines.
“Building on another year of record performance, our guidance for the 2023 financial year reflects our ongoing commitment to optimising returns from our integrated operations and marketing strategy, with total shipments in the range of 187-million to 192-million tonnes.
“We remain focused on innovation and productivity to maintain our industry leading cost position and deliver strong operational performance. Together with our focus on investing in growth through the Iron Bridge magnetite project and Fortescue Future Industries, we are well placed to advance our transition to a global green energy and resources company and ensure our stakeholders continue to benefit from Fortescue’s success,” Gaines said.
For 2023, capex guidance has been set at between $2.7-billion and $3.1-billion, inclusive of sustaining and development capital, exploration and studies, decarbonisation and major projects.
Green energy arm Fortescue Future Industries (FFI) is also progressing a portfolio of green energy projects, manufacturing initiatives and technology developments with 2023 expenditure anticipated to be $600-million to $700-million.
FFI’s 2022 total expenditure reached $534-million, inclusive of $148-million in caex and $386-million in operating expenditure.