Fortescue Metals Group – world’s 4th largest iron ore producer, depicted rise in quarterly shipments in Q2 FY19 at 42.5 MnT, up 6% as against last quarter at 40.2 MnT. On yearly basis, the shipment increased 5% as against 40.5 MnT in Q2 FY18.
FMG iron ore shipment for CY18 dropped to 167.9 MnT as compared to 168.8 MnT in CY17.
FMG iron ore production down 5% Q-o-Q
FMG recorded mined ore production at 49.2 MnT in Q2 FY19, down 5% as against 51.9 MnT in Q1 FY19. On yearly basis, the production volume increased 4% as against 47.5 MnT in Q2 FY18.
Shipments to Non-Chinese markets increased 8% Q-o-Q
The Company accounted for 10% of total Q2FY’19 shipments to non Chinese markets at around 4.3 MnT. The shipments have dropped against last quarter at 4 MnT.
Average price in Q2FY19 increased 7% Q-o-Q
The Average price realisation for the quarter ending Dec’18 witnessed at USD 48/dmt, up 7% Q-o-Q against USD 45/dmt in Q1FY19.
Recent Updates
* FY’19 guidance: FMG FY’19 shipment guidance unchanged at 165-173 MnT. The shipment for second half of FY19 is expected to be more than H1FY19.
*Fe 60.1% grade ore shipment: The Company has initiated shipment of Fe 60.1% grade west Pilbara fines and recorded first cargo shipped to China in Dec’18. The 60.1% grade shipment is expected to reach 8-10 MnT in FY19 and 40 MnT p.a from Dec’20.
*Eliwana mine and rail project: The project is progressing on schedule and ore is expected to be delivered in Dec 2020. The project is expected to support West Pilbara Fines production of 40 MnT p.a.
*Autonomous Haulage (AHS): FMG focuses on driverless trucks to cut costs. The company is heading towards conversion of over 100 trucks to AHS at Chichester Hub, with 44 trucks already put to operation.
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