PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported record third-quarter iron-ore shipments, with tonnage up by 10% on the previous corresponding period, reaching 42.3-million tonnes.
In the year-to-date, iron-ore shipments reached a record 130.9-million tonnes.
C1 costs for the quarter under review were also down 2% on the previous corresponding period, to $13.27/t.
“Fortescue’s strong operating performance in the March quarter has delivered record shipments, increasing 10% compared to the prior comparable quarter, and a 2% reduction in C1 costs maintaining our industry leading cost position. This result underpins an upgrade to our full year guidance for shipments,” said CEO Elizabeth Gaines on Thursday.
Fortescue is now expected to ship between 175-million to 177-million tonnes, at the upper end of the previous guidance of between 170-million and 175-million tonnes, with C1 costs expected to reach between $12.75/t and $13.25/t.
“Fortescue is a core supplier of iron-ore to China and we see strong ongoing demand for our products and anticipate a steady recovery in economic activity in that market,” Gaines noted.
“While the global economic outlook remains uncertain, our balance sheet has never been stronger and we continue to generate sustained cashflow and jobs, invest in growth and focus on delivering returns to our shareholders.”
Fortescue noted that its major growth projects achieved key milestones in the third quarter under review, with the miner revising its full year capital expenditure guidance to between $2-billion and $2.2-billion, down from the previous estimate of $2.4-billion, reflecting the timing of expected payments on the growth projects.
Earthworks on Stage 1 of the railway at the Eliwana mine and rail project were completed during the quarter, in preparation for first track laying, the first steel erection for the ore processing facility and the completion of the permanent village and aerodrome.
Pre-strip mining at Eliwana is expected to start in the first quarter of the 2021 financial year.
The $2.6-billion Iron Bridge project is also progressing to schedule, with first concentrate production planned for the first half of the 2022 calendar year.