Fortescue’s iron ore shipments hit new record

Fortescue Metals Group has set a new record for iron ore shipments of 46.5 million tonnes (Mt) in the June quarter, a 20 per cent increase that brought it to its full-year shipment target of 170Mt.

The vast majority, or 91 per cent, of Fortescue’s iron ore shipments went to China.

The company achieved its new quarterly record while keeping production costs low at $US12.17 ($16.35) per wet metric tonne (wmt), which is 7.4 per cent below the previous quarter.

Its fiscal year 2019 production guidance ranges between 165 to 173Mt, while still keeping the target cost low at $US12-13/wmt ($16-17/wmt).

Fortescue chief executive Elizabeth Gaines said, “Fortescue is in a strong position for financial year 2019 as we continue to focus on the safety, productivity and efficiency of our globally competitive operations to sustainably deliver shareholder value.

“Building on our outstanding operational performance in the quarter, Fortescue has delivered on key strategic initiatives which position us for the next phase of growth while improving safety and productivity, ensuring we remain the lowest cost producer of seaborne iron ore.”

During the June quarter, the company’s non-China markets accounted for 9 per cent of its total shipments, which has more than doubled since the 2017 financial year.

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