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Australia's Fortescue breaks records in FY 2021 on sharp rise in iron ore prices and increased shipments

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(Kitco News) - Australian iron ore mining giant Fortescue Metals (ASX: FMG) announced today that the company’s record FY 2021 (financial year ended June 2021) performance delivers net profit after tax of US$10.3 billion, an increase of 117% compared to FY 2020, and a 103% increase in total dividends to A$3.58 per share.

The company said that its highest ever annual shipments of 182.2 million tonnes in FY 2021 exceeded guidance and were 2% higher than in FY 2020, with earnings and operating cashflow surpassing any year in Fortescue’s history.

Revenue of US$22.3 billion in FY 2021 was 74% higher than the prior year, reflecting a 2% increase in ore sold to 181.1 million tonnes and a 72% increase in average revenue to US$135 per dry metric tonne (dmt).

Underlying EBITDA of US$16.4 billion was 96% higher than FY 2020, as the Underlying EBTIDA margin increased to 73% or US$99/dmt, reflecting the strength in revenue received and disciplined cost management.

The company expects that in FY 2022, its iron ore shipments will be 180 – 185 million tonnes at C1 cost of US$15.00 - US$15.50/wmt.

Fortescue Metals is a global leader in the iron ore industry. Fortescue’s wholly owned and fully integrated operations in the Pilbara include the Chichester and Solomon mining hubs and the Western Hub, home to the new Eliwana mine. The company also undertaking exploration activities in New South Wales and South Australia, as well as in Ecuador and Argentina, and preliminary exploration activities on tenements that are in application in Colombia, Peru, Portugal and Kazakhstan, prospective for copper, gold and lithium.

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