https://www.miningweekly.com
Building|Energy|Financial|Iron Ore|PROJECT|Projects|Technology|Testing|Trucks|Locomotive|Operations
Building|Energy|Financial|Iron Ore|PROJECT|Projects|Technology|Testing|Trucks|Locomotive|Operations
building|energy|financial|iron-ore|project|projects|technology|testing|trucks|locomotive|operations

Fortescue posts record shipments

Image shows Fortescue's iron-ore operations in the Pilbara

Photo by Bloomberg

29th July 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported record shipments of 49.3-million tonnes for the quarter ended June, while full-year iron-ore shipments exceeded guidance.

“The Fortescue team has delivered excellent results for the June quarter, with record quarterly shipments of 49.3-million tonnes contributing to our highest ever annual shipments of 182.2-million tonnes in 2021,” said CEO Elizabeth Gaines.

“This was an outstanding performance despite the impact of wet weather, as well as Covid-19 restrictions requiring many of our team members to remain on site for extended periods during Western Australia’s lockdowns. We greatly appreciate the ongoing cooperation of the entire Fortescue family as we continue to manage the impacts of Covid-19.”

Iron-ore shipments for the June quarter were up 17% on the third quarter, while C1 cash costs were also up by 2% in the quarter to $15.23/t, and by 8% in the full year, to $13.93/t.

“The strength of the operating performance, combined with record average revenue resulted in strong free cashflow generation in the June quarter as demonstrated by the movement from a net debt position at the end of March of $1.0-billion to net cash of $2.7-billion at June 30,” said Gaines.

Record average revenue of $168/dry metric tonne was achieved for the quarter under review, realising 84% of the average Platts 62% CFR Index, and $135/dmt for the full 2021 financial year.

Total capital expenditure for the 2021 financial year reached $3.6-billion, with first production achieved at Eliwana and continued development of the Iron Bridge and Pilbara Energy Connect projects.

The Iron Bridge technical and commercial assessment was completed in May this year, and resulted in a revised capital estimate of $3.3-billion to $3.5-billion, of which Fortescue’s share would amount to between $2.5-billion and $2.7-billion.

The project will deliver 22-million tonnes a year of high grade 67% iron magnetite concentrate, with first production scheduled by December 2022 and a ramp-up period of 12 to 18 months.

“During the quarter, Fortescue Future Industries made significant progress on a number of decarbonisation projects including the successful combustion of ammonia in a locomotive and testing of battery cell technology to be used on Fortescue haul trucks. This work underpins Fortescue’s industry leading target to achieve carbon neutrality by 2030,” Gaines said on Thursday.

“Building on a second consecutive year of record performance, our guidance for 2022 reflects our ongoing commitment to optimising returns from our integrated operations and marketing strategy, with shipments in the range of 180-million to 185-million tonnes.

Together with our focus on investing in growth through the Iron Bridge magnetite project and Fortescue Future Industries, we will continue to deliver strong results to ensure all our stakeholders benefit from Fortescue’s success,” she added.

For 2022, Fortescue is expecting C1 costs to reach between $15/t and $15.50/t.

Edited by Creamer Media Reporter

Comments

Latest News

Redpath logo on machinery
Redpath acquires RUC
26th March 2024 By: Darren Parker

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.184 0.217s - 90pq - 2rq
Subscribe Now