Make Kitco Your Homepage

Fortescue Metals acheives record shipments

Kitco News

Fortescue Metals Group filed its December 2020 quarterly producion report.

Iron ore shipments of 46.4 million tonnes (mt) in the quarter contributed to record shipments for a half year of 90.7mt.

C1 costs of US$12.81/wet metric tonne (wmt) were in line with the previous quarter.

Fortescue Chief Executive Officer, Elizabeth Gaines, said “Record shipments of 90.7mt surpassed any half year since Fortescue’s inception, and we are very well placed to meet the sustained strength in demand from our customers.

“Fortescue is continuing to deliver strong results for FY21 across all key measures of safety, production and cost; and during the quarter the team achieved a key milestone of first ore at our Eliwana mine. Safety performance was steady, with the TRIFR remaining at 2.1 on a 12 month rolling basis supported by a strong focus on hazard reduction."

Average revenue of US$122/dry metric tonne (dmt) realised 91 per cent of the average Platts 62% CFR Index for the quarter.

Strong cashflow generation resulted in net debt of US$0.1 billion at 31 December 2020, after payment of the FY20 final dividend and the FY20 final tax instalment during the quarter.

First ore was achieved at the Eliwana mine in December 2020, a significant milestone for development of Fortescue’s iron ore operations in the Western Hub region of the Pilbara.

Fortescue’s commitment to sustainability was recognised with its inclusion in the 2020 Dow Jones Sustainability Indices and an upgraded status in the latest MSCI ESG ratings.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.