Australia: FMG's iron ore shipments fall by 6% y-o-y in Q1CY'24; guidance intact

Fortescue Metals Group (FMG), Australia's leading miner, has released its operational results for the March quarter. Iron ore shipments in the first quarter of calendar year 2024 (Q1CY'24) were recorded at 43.3 million tonnes (mnt), down by 6% y-o-y compared to 46.3 mnt in Q1CY23.

Meanwhile, on a quarterly basis, shipments fell by 11% as against 48.7 mnt in Q1CY'24.

The fall in shipment was due to the impact of the ore car derailment on 30 December 2023 and weather disruptions.

Iron ore production down in Q1CY'24

Total mined ore for the first quarter moved down to 46.6 mnt, down by 8% y-o-y compared to 50.6 mnt in Q1CY'23. Output decreased by 15% q-o-q compared to 55 mnt in the last quarter.

Volume references are based on wet metric tonnes (wmt).

Shipment guidance for FY'24: Based on the continued strong operating performance in Q1CY24, the guidance for iron ore shipments increased to 192-197 mnt.

Cost guidance for FY'24: Cost guidance marginally increased to $18.00-19/wmt.

Highlights

• The exploration and study operations at the Belinga iron ore project in Gabon saw a rise in activity.
  
  
• Iron bridge commissioning activities continued to make progress, including the completion of load commissioning of Dry Circuit B, and shipments were at 0.5 metric tonne (mt) in Q3 FY24.
  
  

FMG's Chief Executive Officer, Dino Otranto said, "The Fortescue team pulled together to successfully implement our recovery plan, and we had a record month for shipments in March of 18.7 mt contributing to 43.3 mt for the quarter. We also set a new record for railed tonnes, all while continuing to improve our safety performance."

"Our decarbonisation plan is progressing well, with our first operational electric excavator moving over one million tonnes (mnt) of material since being commissioned. Our battery electric haul truck prototype has completed its first phase of testing, exceeding the performance expectations of the battery power system."

Fortescue Energy Chief Executive Officer, Mark Hutchinson said: "The energy business achieved several milestones, including the official opening of our Gladstone Electrolyser facility in Queensland, which positions Fortescue as a large scale producer of electrolyser stacks."