FMG Reports Record Iron Ore Shipments in H1

Fortescue Chief Executive Officer, Elizabeth Gaines, said “Record shipments of 90.7 million tonnes surpassed any half year since Fortescue’s inception, and we are very well placed to meet the sustained strength in demand from our customers.”

Quarterly highlights

Iron ore shipments of 46.4 million tonnes in the quarter contributed to record shipments for a half year of 90.7 million tonnes

C1 costs of USD 12.81 per wet metric tonne were in line with the previous quarter

Average revenue of USD122 per dry metric tonne realised 91% of the average Platts 62% CFR Index for the quarter

First ore was achieved at the Eliwana mine in December 2020, a significant milestone for development of Fortescue’s iron ore operations in the Western Hub region of the Pilbara

Chinese crude steel production reached a record of 1,053 million tonnes in calendar year 2020, increasing 5.2% compared to 2019. Demand for sinter fines remains strong, supporting prices during the quarter. Total iron ore stocks at Chinese ports rose from 116 million tonnes at 30 September 2020 to 125 million tonnes at 31 December 2020, consistent with seasonal trends

Fortescue’s wholly owned Chinese sales entity, FMG Trading Shanghai Co. Ltd sold 3.0 million tonnes in Q2 FY21 from regional ports in China, with sales of 5.8 million tonnes in H1 FY21.

Guidance for FY21 shipments, C1 cost and capital expenditure remains unchanged at the assumed AUD:USD exchange rate of 0.70.