FMG Reports Record Iron Ore Shipment in Q4 FY19

Fortescue Metals Group – world’s 4th largest iron ore producer, depicted record high shipments in last quarter FY 19 (ended June’19) at 46.6 MnT. The shipments recorded rise of 22% Q-o-Q as against 38.3 MnT in Q3 FY19. On yearly basis, shipment was slightly up compared to 46.5 MnT in Q4 FY18.

For FY19, the total shipment witnessed at 167.6 MnT, down marginally compared to 169.7 MnT in FY18. The shipment fell amid impact of tropical cyclone Veronica which hit the western Pilbara region in Australia.

West Pilbara fines shipment up 24% Q-o-Q

West Pilbara fines shipment for the fiscal FY19 witnessed at 9 MnT, in line with FY 19 laid guidance. The shipment for the quarter Q4 FY19 recorded at 4.7 MnT, about 10% of total shipment for the quarter as against 3.8 MnT in Q3 FY19.

FMG iron ore production up 20% in Q4 FY19

FMG recorded mined ore production at 57.6 MnT in Q4 FY19, up 20% as against 48 MnT in Q3 FY19. On yearly basis, the production volume increased 16% as against 49.8 MnT in Q4 FY18.

For the fiscal year ending June’19 the total ore mined recorded at 206.7 MnT, up 12% against 184.6 MnT in FY18.

Shipments to Non-Chinese markets accounted 6% of total shipments

Non-China markets accounted for 6% of total shipments during the quarter, at around 2.8 MnT.

Recent Updates

* FY’20 guidance: FMG FY’20 (July’19-June’20) shipment guidance laid at 170-175 MnT, inclusive of 17-20 MnT of west Pilbara Fines product.The miner reduced C1 (cash production cost) costs by over 5% to USD12.78/wmt reinforcing their position as the lowest cost producer
*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.
*Iron Bridge Magnetite Project: The project is on schedule to produce 22 MnT of premium 67% iron grade.
*Autonomous Haulage (AHS): FMG focuses on driverless trucks to cut costs. The project is under progress with 59 trucks converted at Christmas Creek, bringing the total autonomous fleet to 128. The conversion to fully autonomous mining is expected to be completed by mid 2020.
* Establishment of Chinese sales entity: The miner has established a wholly owned Chinese sales entity to supply products to Chinese mills in smaller volumes in Renminbi directly from regional ports.