Fortescue Metals Group, the world’s fourth-largest iron ore producer, announced that its full-year iron ore shipments increased by 2% despite a slight dip in fourth-quarter volumes. The company reported shipments of 48.9 million metric tons for the three months through June, bringing the total volumes for the fiscal year to 192.0 million tons. This exceeded the company’s forecast range of shipments between 187 million tons and 192 million tons.
Fiona Hick, the Chief Executive of Fortescue, stated, “This marks the fourth consecutive year of record shipments.” She also expressed optimism for the future, with the company expecting to ship between 192 million tons and 197 million tons of iron ore in the year through June 2024.
Fortescue operates a network of iron-ore mines in remote northwest Australia, including its newly launched site, Iron Bridge.
This positive performance is a testament to Fortescue Metals Group’s ongoing success in the iron ore industry. With a strong commitment to their operations and increasing exports, the company is well-positioned for continued growth in the coming years.
Commissioning of New Mine Underway
Despite facing disruptions from tropical cyclone Ilsa and a defect in the process water pond, the commissioning of our new mine is progressing well, according to the company. We are pleased to estimate shipments of 7 million tons from this operation in fiscal 2024, with a full capacity of 22 million tons expected within two years.
Exciting Developments in Gabon
Furthermore, we are proud to announce that we have recently mined the first ore from the Belinga iron-ore project in Gabon. Our first shipment from this project is anticipated to be reported by the end of 2023.
Revenue Update
In terms of revenue, our average annual revenue stands at $94.74 per ton, a slight decline from $99.80 per ton reported last year.
Positive Outlook in China
“The recovery in China has been uneven, but we have been encouraged by recent signals,” commented Hick.
Impact of China’s Property Sector
China’s property sector, a major consumer of industrial metals, has experienced a downturn that has had a significant impact on the Chinese economy. In the second quarter, the economy barely grew compared to the first quarter. However, there are indications that the sector is set to receive a boost, resulting in increased prices of metals and mining stocks, including Fortescue.
Market Update
At midmorning in Sydney on Thursday, Fortescue shares were down 0.6%, reflecting a general pullback across Australian mining stocks.
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