Make Kitco Your Homepage

Australia's Fortescue reports record December quarterly iron ore shipments

Kitco News

Welcome to Kitco News' 2023 Outlook Series. Uncertainty continues to dominate financial markets as central bank monetary policies push the global economy into a recession to cool down inflation. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2023.

(Kitco News) - Australian iron ore producer Fortescue (ASX: FMG) today reported its highest ever December quarterly shipments of 49.4 million tonnes, up 4% year-over-year, which contributed to shipments of 96.9mt for H1 FY23, 4% higher than H1 FY22 and a record for a half year.

The company said that its C1 cost was US$17.17/wet metric tonne (wmt), 3% lower than the previous quarter.

Fortescue added that its cash balance increased to US$4.0 billion at 31 December 2022 (US$3.3 billion at 30 September 2022).

The company’s guidance for FY23 shipments is maintained at 187 - 192mt, inclusive of Iron Bridge shipments of less than 1mt (previously 1mt); guidance for FY23 C1 cost and capital expenditure remain unchanged.

Executive Chairman, Dr Andrew Forrest AO, stated, “The Fortescue team delivered our highest ever December quarterly shipments of 49.4 million tonnes, our best ever half year, grew the mineral and green energy business globally, strengthened our balance sheet, kept costs low, all while maintaining our excellent safety performance.

“We are now nearing the 200 million tonne annualised rate in our iron ore business even before we commission Iron Bridge. Our company has never performed better on the mining, exploration, green hydrogen and green energy development front, while leading the world as the first heavy industry company to achieve real zero with a fully costed plan. Fortescue will step beyond fossil fuels this decade, saving shareholders approximately US$1 billion a year and setting the global stage for all environmentally responsible companies to follow.”

Fortescue is one of the world’s largest and lowest cost iron ore producers. Fortescue is now shipping at an annual rate of over 180 million tonnes with more than 1.7 billion tonnes of iron ore delivered to its customers since 2008.

Through its green energy and technology company FFI, Fortescue is rapidly diversifying its business to become an integrated, global green energy and resources company.

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.