Fortescue hits new peak for iron ore shipments

Fortescue

Herb Elliott Port in Western Australia. Image: Fortescue Metals Group

Fortescue Metals Group has registered record iron ore shipments of 49.5 million tonnes for the July quarter, boosting FY22 shipments to 189mt, exceeding the top end of guidance.

Strong cash flow generation contributed to cash on hand of US$5.2 billion and net debt of US$0.9b, compared to net debt of US$2.4b at the close of the previous quarter.

Fortescue chief executive officer Elizabeth Gaines said this was achieved in a challenging operating environment due to the impact of COVID throughout the financial year.

“Despite industry-wide and global headwinds, Fortescue’s unique culture and values has delivered these exceptional results and Iam immensely proud of the performance of the team,” she said.

“We maintain a strong focus on safety and a commitment to zero harm, with TRIFR improving to 1.8 in the 12 months to June 30, 2022, 10 per cent lower than 2 at June 30, 2021. This reflects our core Value of Safety and the commitment to look out for our workmates and ourselves.”

Fortescue continued to significantly advance its decarbonisation objectives in the quarter, as evidenced by the strategic partnership with Tier 1 global equipment manufacturer Liebherr for the development and supply of zero emission green mining haul trucks. The agreement leverages the capabilities and value created through Fortescue’s acquisition of Williams Advanced Engineering.

“Building on another year of record performance, our guidance for FY23 reflects our ongoing commitment to optimising returns from our integrated operations and marketing strategy, with total shipments in the range of 187–192mt,” she said.

“We remain focused on innovation and productivity to maintain our industry-leading cost position and deliver strong operational performance. Together with our focus on investing in growth through the Iron Bridge Magnetite project and Fortescue Future Industries, we are well placed to advance our transition to a global green energy and resources company and ensure our stakeholders continue to benefit from Fortescue’s success.”

 

About Ray Chan

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).

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