PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported a record net profit after tax of $10.3-billion for the 2021 financial year, on the back of its highest ever annual shipments of 182.2-million tonnes.

The miner said on Monday that shipments exceeded guidance for the full year.

“Guided by our unique culture and values, the Fortescue family has delivered a second consecutive year of record performance, with shipments, earnings and operating cashflow surpassing any year in Fortescue’s history,” CEO Elizabeth Gaines said.

Ore shipments for the full year were up from the 178.2-million shipped in the 2020 financial year, with revenues increasing from $12.8-billion to $22.2-billion, as average revenue per tonne increased from $78.62/t to $135.32/t.

Underlying earnings before interest, taxes, depreciation and amortisation for the full year reached $16.3-billion, compared with the $8.3-billion reported last year, with net profits after tax increasing from $4.7-billion to $10.29-billion in the same period.

Meanwhile, C1 cash costs for the year also increased from $12.94/t to $13.93/t.

“During the year, Fortescue celebrated a number of significant operational milestones, including the delivery of our newest mining operation at Eliwana. The strong operating performance across our supply chain, along with the successful ramp-up and integration of Eliwana contributed to Fortescue’s outstanding results in 2021,” said Gaines.

She noted that through the Iron Bridge magnetite project and Fortescue Future Industries (FFI), the company is investing in the growth of its iron-ore operations, as well as pursuing ambitious global opportunities in renewable energy and green industries.

“The establishment of FFI during the year underpinned our industry-leading target to achieve carbon neutrality by 2030. FFI will be a key enabler of this target through a forward-looking approach to ensuring our capital investments in decarbonisation are aligned with strategic decisions such as fleet renewal.

“As we execute on our strategy to become a global leader in the battle against climate change we will establish goals to tackle emissions across our value chain, with specific targets, and a framework for our approach to Scope 3 emissions, to be announced by 30 September 2021,” Gaines said.

“Reflecting our ongoing commitment to delivering enhanced shareholder returns, the Board has declared a fully franked final dividend of A$2.11 per share, bringing total dividends for FY21 to A$3.58 per share, representing an 80% payout of full year net profit after tax.

“We have seen a strong start to 2022 and through operational excellence, sustained focus on productivity and disciplined approach to capital allocation, we will continue to deliver benefits to all our stakeholders,” she said.

Fortescue is targeting iron-ore shipments of between 180-million and 185-million tonnes for 2022, at C1 costs of between $15/t and $15.50/t.