Australia: FMG’s iron ore shipments up 4% in Q4CY’21, FY’22 guidance unchanged

Australia’s leading miner, Fortescue Metals Group (FMG), released its operational results for Dec’21 quarter today, 25 Jan’22. Iron ore shipments in Q4CY’21 were recorded at 47.5 million tonnes (mnt), up by 4% q-o-q compared to 45.6 mnt in Q3CY’21.

Also, on a yearly basis, the shipments rose marginally by 2% as against 46.4 mnt in Q4CY’20.

Iron ore production down in Q4

Total mined ore for the fourth quarter (Q4CY’21) decreased to 57.2 mnt, down 6% q-o-q as compared to 60.8 mnt in Q3CY’21. However, the output increased significantly by 14% on year compared to 50 mnt in the same quarter last year.

Fortescue Metals Group (FMG) Production Summary

Production guidance

• Iron ore shipment guidance unchanged: Iron ore shipment guidance remained unchanged at 180-185 mnt for FY’22 (Jul’21-Jun’22).
• Cost guidance for FY’22: It has been set at $15-15.5/wmt in line with the previous quarter, reflecting the price escalation of the key input costs (including diesel, other consumables and labour rates), the integration of Eliwana as well as mine plan driven cost escalation.

Fortescue Chief Executive Officer, Elizabeth Gaines, said, “The Fortescue team has again delivered an outstanding performance for the first half of FY’22 with mining, processing, rail and shipping combining to deliver record second quarter shipments of 47.5 million tonnes, contributing to record performance for a half year of 93.1 million tonnes.”