Fortescue sets record half

25th January 2022 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( – Iron-ore major Fortescue Metals has reported record iron-ore shipments in the half-year ended December, with shipments reaching 93.1-million tonnes in the half-year, up 3% on the previous corresponding period.

Fortescue reported on Tuesday that iron-ore shipments in the three months to December had reached 47.5-million tonnes.

Iron-ore production in the second quarter ended December reached 57.2-million tonnes.

“The Fortescue team has again delivered an outstanding performance for the first half of 2022 with mining, processing, rail and shipping combining to deliver record second-quarter shipments of 47.5-million tonnes, contributing to record performance for a half-year of 93.1-million tonnes,” said CEO Elizabeth Gaines.

“Our C1 cost was in line with the previous quarter, reflecting our strong focus on cost management to mitigate inflationary pressures associated with strong demand for labour and resources, as well as supply chain constraints due to Covid-19. We are proud of the entire Fortescue family who continue to deliver record operating performance and achieve key project milestones.”

Average revenue of $74.36/t was reported for the quarter under review, representing revenue realisation of 68% of the Platts 62% CFR Index for the quarter.

For the full 2022 financial year, Fortescue is expecting iron-ore shipments to reach between 180-million and 185-million tonnes, at C1 costs of between $15/t and $15.50/t, with the cost guidance based on a revised average exchange rate assumption.

“During the quarter, the momentum of Fortescue’s transition to a vertically integrated green energy and resources company continued to accelerate. Fortescue Future Industries (FFI) is making significant progress and will be a key enabler of Fortescue’s delivery against our industry-leading decarbonisation targets,” Gaines told shareholders on Tuesday.

“Our acquisition of Williams Advanced Engineering (WAE) supports these targets and further underpins our leadership in green energy through the provision of critical technology and expertise in high-performance battery systems and electrification. We will utilise this capability in the decarbonisation of our own operations and in turn the global heavy industry sector, further demonstrating our commitment to green energy and the creation of a sustainable future.”

Fortesuce this week announced a £164-million deal to acquire UK-based technology and engineering services business WAE, to help Fortescue realise its 2030 net-zero targets. The two companies will work together to help bring green energy to life in Fortescue’s 3-km-long freight trains, 400 t haul trucks and industrial heavy mobile equipment.

Fortescue on Tuesday revealed that FFI’s operating expenditure during the first half of 2021 reached $174-million, with the division’s full-year expenditure expected to remain unchanged at between $400-million and $600-million, inclusive of $100-million to $200-million of capital expenditure.

Group capital expenditure, excluding FFI, for the full year has been targeted at between $3-billion and $3.4-billion, after incorporating the WAE acquisition.

“Fortescue is advancing on its clear strategic vision and our focus remains on safety and operational excellence to meet strong demand from our customers. We have a robust Covid-19 management plan in place to prioritise the health and safety of our team and the communities in which we operate,” said Gaines.

“We continue to assess the implications of the uncertain timing of the reopening of Western Australia’s border to ensure we have access to the skills and expertise needed to maintain Fortescue’s significant contribution to our stakeholders, as well as the state and national economies.”