PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported record shipments, revenue, earnings and operating cashflow for the year ended June.

Net profit after tax for the 12 months ended June increased by 49% on the previous period, to $4.7-billion, with underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) increasing by 38%, to $8.4-billion.

Net cashflow from operating activities was reported at $6.4-billion for the full year ended June, and free cashflow at $4.4-billion, after the miner invested $2-billion in capital expenditure (capex).

Revenue for the financial year was up 29%, to $12.8-billion, which the company said reflected both the 6% increase in ore shipments, which reached 178.2-million tonnes in the full year, as well as a 21% increase in average realised price for the iron-ore.

“For the 2020 financial year, we delivered record revenue, underlying Ebitda and net profit after tax, demonstrating the continued ability of our operations to generate strong cash flows through the successful execution of our integrated operations and marketing strategy,” said CEO Elizabeth Gaines on Monday.

“Leveraging the capability of our value chain resulted in record shipments, sustained low cost performance and excellent operating margins which positioned us to deliver a record net profit after tax.”

C1 costs for the full year dropped by 1%, to $12.94/t.

Looking ahead at 2021, Fortescue has targeted iron-ore shipments of between 175-million and 180-million tonnes, at C1 costs of between $13/t and $13.5/t, with capex budgeted at between $3-billion and $3.5-billion, with the majority of the capital spend going towards the Eliwana and Iron Bridge growth projects.

The A$1.3-billion Eliwana consists of a new 30-million-tonne-a-year dry ore processing facility and infrastructure and a 143-km rail line. First ore from Eliwana is scheduled to be loaded in December this year

A$2.6-billion Iron Bridge is expected to produce 22-million tonnes a year once in full operation, producing a 67% iron content product, suitable for pellet feed or blending with sinter fines.

Iron Bridge is expected to ship its first ore in the first half of the 2021 calendar year.