Fortescue Metals Group (FMG), an Australian iron ore company, reported its latest results for the third quarter of the fiscal year 2023 on Monday. According to the company, it shipped a record 143.1 million tonnes (mt) of iron ore between July and March, with 46.3 million mt being shipped in the third quarter alone.
The company said it achieved an average revenue of US$109/dry metric tonne (dmt) for the quarter, representing 87 percent of the average Platts 62% CFR Index. However, the company's C1 cost for the quarter was US$17.73/wet metric tonne (wmt), which was two percent higher than the first half of the fiscal year.
Despite this increase in costs, FMG's net debt at the end of the quarter was US$2.1 billion, after paying an interim dividend of US$1.5 billion and spending US$681 million on capital expenditures during the quarter.
FMG also announced several other developments during the quarter, including the production of the first wet concentrate from the Ore Processing Facility at the Iron Bridge Magnetite Project on April 21, ahead of being pumped to Port Hedland. Additionally, the company signed the Mining Convention for the Belinga Iron Ore Project in Gabon, with the first mining planned for the second half of calendar 2023.
Construction works were also completed at Fortescue Future Industries’ (FFI) electrolyser manufacturing facility in Gladstone, and FFI made continued progress on its priority projects in the USA, Australia, Brazil, Kenya, and Norway. FFI secured renewable power with a Power Purchase Agreement with Statkraft, in Norway.
Fortescue Metals Group's guidance for FY23 shipments, C1 cost, and capital expenditure remains unchanged. The company expects its C1 cost to be at the lower end of the range.
