Fortescue Metals Group (FMG), Australia’s leading miner, has released its operational results for January-June 2024 (H1CY’24). Iron ore shipments in the first half of calendar year 2024 (H1CY’24) were recorded at 97 million tonnes (mnt), up by 2% y-o-y compared to 95.2 mnt in H1CY’23.
Meanwhile, on a quarterly basis, shipments rose by 24% to 53.7 mnt in Q2CY’24 as compared to 43.3 mnt in Q1CY’24.
The increase in shipment was amid the recovery plan execution following the ore car derailment in December 2023 alongside weather disturbances.
Iron ore production up in H1CY’24
Total mined ore for the first half of 2024 moved up to 105.6 mnt, climbed by 3% y-o-y compared to 103 mnt in H1CY’23. Output increased by 27% q-o-q to 59 mnt in Q2CY’24 as compared to 46.6 mnt in the last quarter.
Volume references are based on wet metric tonnes (wmt).
Shipment guidance for FY’25: Based on the continued strong operating performance in H1CY’24, the guidance for iron ore shipments for the miner for FY’25 has been set at 190-200 mnt.
Cost guidance for FY’25: Cost guidance has ben set at $18.50-19.75/wmt.
Highlights
- The Belinga Iron Ore Project saw progress in exploration and drilling during the June Quarter, with seven rigs actively working on site. At this point, a total of 45,000 meters of Reverse Circulation and 7,000 meters of diamond core have been successfully completed.
- Fortescues portion of Iron Bridges projected cash operating expenses, excluding shipping and royalties, for FY25 is estimated to be around $500 million.
- Ongoing exploration for iron ore in the Pilbara is concentrating on drilling activities at Mindy South, White Knight, and Wyloo North, with a particular emphasis on near-mine exploration at both Solomon and the Chichester Hub.
FMG’s Chief Executive Officer, Dino Otranto said, “It’s been an outstanding quarter by the team who rallied together to deliver record iron ore shipments of 53.7 mnt which was 10 per cent higher than the June quarter last year. This record result demonstrated the efficiencies gained through our recovery plan following the ore car derailment in December 2023.
“Importantly, we achieved this while maintaining our laser focus on safety with our Total Recordable Injury Frequency Rate improving to 1.3 for the financial year. This is an incredible achievement and shows a 28 per cent improvement from the previous year.
Fortescue Energy Chief Executive Officer, Mark Hutchinson said: “Our Fortescue Zero green technologies also went from strength to strength as we signed our first contracts to sell electrolysers from our Gladstone facility and finalised a multi-year deal with JLR to use Fortescue’s cutting-edge battery intelligence software, Elysia, in its next-generation electric vehicles.“
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