Posted on 28 Jul 2023
Australian iron ore producer Fortescue Metals has projected higher iron ore shipments of 192-197 million tonnes for fiscal 2024, up from 192mt in fiscal 2023, Kallanish notes.
The iron ore shipments for FY24 include approximately 7mt from Iron Bridge. Iron Bridge commenced production of high-grade magnetite concentrate during the quarter and the first concentrate was loaded on ship on 24 July.
The group's iron ore shipments of 48.9mt in the fourth quarter of FY23 contributed to record shipments for FY23. The FY23 shipments were 2% higher than FY22 and achieved the top end of market guidance.
The record shipments reflect strong performance across the entire supply chain and ongoing focus on productivity gains.
"Our hematite operations are performing strongly and we are focused on delivering growth through the safe and efficient ramp up of Iron Bridge, unlocking the potential of Belinga and decarbonising our iron ore operations. We will continue to invest in green metals, green energy and green technologies, supported by our strong balance sheet and disciplined capital allocation," Fortescue chief executive officer Fiona Hick says.
The group's FY24 C1 cost guidance for Pilbara hematite stands at $18-19/wet metric tonne (wmt). The group achieved C1 cost of $17.57/wmt in the fourth quarter of FY23 and 17.54/wmt in FY23.
Meanwhile, the group's capital expenditure (excluding Fortescue Future Industries) for FY24 stands at $2.8-3.2 billion. This includes sustaining capital and hub development ($1.9-$2.1 billion), exploration and studies ($300 million), iron ore porjects including Iron Bridge and Belinga ($300 million) and decarbonisation ($300-$500 million).
Fortescue, through its joint venture company Ivindo Iron, also made significant progress in the early stage mine development at the Belinga iron ore project in Gabon. The first ore was mined, loaded on train and delivered to the Owendo Mineral port in Libreville during the quarter. The first shipment from the port is expected this calendar year.
Source:Kallanish
