PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported a record net profit after tax of $3.2-billion in the full year ended June, driven by a 48% increase in revenues.

While iron-ore shipments were down 1% on the 2018 figures, at 167.7-million tonnes, higher iron-ore prices drove revenue to $65/t, for $9.96-billion in the full year.

Underlying earnings before interest, taxes, depreciation and amortization (Ebitda) also reached a record $6-billion, up 90% on the 2018 figures, while the underlying net profit after tax was a 195% improvement on 2018.

“FY2019 was a year of record achievements, most importantly in safety performance, which resulted in our lowest annual total recordable injury frequency rate of 2.8, with the entire Fortescue team delivering excellent results across all of our operations,” said CEO Elizabeth Gaines on Monday.

“Our integrated operations and marketing strategy, record processing, together with our continued disciplined approach to cost management delivered shipments of 167.7-million tonnes and a full-year underlying Ebitda margin of $39/t. Cash on hand increased to $1.9-billion at June 30, while net debt reduced to $2.1-billion, the lowest level since achieving current production capacity in 2014.”

C1 operating costs for the full year reached $13.11/t, up 6% on 2018, driven by longer haul distances, higher fuel prices and increased salaries and wages.

Gaines told shareholders that Fortescue’s $3.87-billion investment in growth through the Eliwana mine and rail development, and the Iron Bridge magnetite projects, would increase the average iron-ore content of Fortescue’s product, providing the company with flexibility to meet customer requirements and enhance returns to shareholders through all market cycles.

“We have seen a strong start to 2020 and Fortescue is well positioned to continue to deliver benefits to all stakeholders, including our customers, employees and the communities in which we operate, while rewarding shareholders. Fortescue has never been in a stronger position to continue to optimise margins and cashflows, underpinning the resilience in our earnings through all market cycles.”

For 2020, Fortescue is targeting shipments of between 170-million and 175-million tonnes, including 17-million to 20-million West Pilbara Fines product. C1 costs are expected to be between $13.25/t and $13.75/t.