- FMG recorded highest shipments in Second half of 2024
- Shipment and cost guidance remained intact
Fortescue Metals Group (FMG), Australia’s leading miner, has released its operational results for January-December 2024 (CY’24). Iron ore shipments in CY’24 were recorded at 194.1 million tonnes (mnt), up by 2% y-o-y compared to 189.8 mnt in CY’23.
On a quarterly basis, shipments rose by 4% to 49.4 mnt in Q4CY’24 as compared to 47.7 mnt in Q3CY’24.
Despite the challenges of wet weather in the Pilbara, FMG recorded its highest-ever shipments in the second half of the year, leveraging well-maintained inventories and a streamlined supply chain.
Iron ore production rises in CY’24
Total mined ore for 2024 moved up to 224.6 mnt, climbed by 5% y-o-y compared to 214.2 mnt in CY’23. Output increased by 8% q-o-q to 61.9 mnt in Q4CY’24 as compared to 57.1 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 CY’24, the guidance for iron ore shipments for the miner for FY’25 has remained unchanged at 190-200 mnt.
Cost guidance for FY’25: Cost guidance has been set at $18.50-19.75/wmt.
Highlights
- Exploration and drilling activities are ongoing at the Belinga Iron Ore Project in Gabon. To date, the project has achieved significant milestones, including over 84,000 meters of reverse circulation drilling and 12,000 meters of core drilling.
- Iron Bridge’s cash operating expenses for FY25, excluding shipping and royalties, remain unchanged and are projected to be approximately $500 million.
- Iron ore exploration in the Pilbara region remains active, with a targeted focus on near-mine initiatives at the Chichester Hub and Solomon operations.
FMG’s Chief Executive Officer, Dino Otranto said, “It’s been an outstanding operating performance in the quarter, with iron ore shipments of 49.4 million tonnes contributing to our highest ever half year shipments of 97.1 million tonnes. We achieved this while maintaining our focus on safety, as well as driving costs lower.
“Our decarbonisation plan is also making progress with a major heavy mobile equipment contract awarded to XCMG during the quarter, which will support the transition of our diesel mining fleet to zero emissions by 2030.”
Fortescue Energy Chief Executive Officer, Mark Hutchinson said: “We are continuing to advance and commercialise our portfolio of green technologies which are needed to accelerate the transition to Real Zero.”
“Our global team is also continuing to progress and refine our green energy projects in a disciplined manner with a focus on completing the feasibility studies for projects in Norway and Brazil.“
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