Australia: FMG's iron ore shipments rise, production falls in CY22

Australia's leading miner, Fortescue Metals Group (FMG), has released its operational results for the December quarter. Iron ore shipments in the Calendar year 2022 (CY22) were recorded at 192.9 million tonnes (mnt), up by 4.4% y-o-y compared to 184.7 mnt in CY21. Iron ore export to China increased in CY22 due to low grade iron ore demand in the Chinese market. As a result, FMG's shipments also increased.

However, total mined ore for the whole calendar year fell to 225.6 mnt, down by 4.6% y-o-y compared to 236.5 mnt in CY21.

Shipments and production rise in the December quarter

• Shipments increased by 4% to 49.4 mnt q-o-q in Q4CY22 from 47.5 mnt in the previous quarter. Output also increased by 9% q-o-q to 60 mnt compared to 54.8 mnt in Q3CY22.
  
  
• Shipments improved by 4% y-o-y as against 47.5 mnt in Q4CY21. Similarly, production also increased by 5% y-o-y compared to 57.2 mnt in Q4CY21.
  
  

FMG's production

• Volume references are based on wet metric tonnes (wmt).
  
  
• The product is shipped with approximately 8-9% moisture.
  
  

Production guidance

• Shipment guidance for FY23: Based on the continued strong operating performance in Q4CY22, the guidance for iron ore shipments remained stable at 187-192 mnt.
  
  
• Cost guidance for FY23: Cost guidance remained unchanged at $18.00-18.75/wmt.
  
  

Highlights

• FMG Trading Shanghai Co. Ltd.'s portside sales in China were 4 mnt in Q4CY22 and 9.3 mnt in H2CY22.
  
  
• Geological mapping and sampling operations were the main focus of the Belinga Iron Ore project in Gabon. It is expected that the inaugural drilling program would start in March, 2023.
  
  

FMG's Chief Executive Officer, Elizabeth Gaines, said, "The Fortescue team delivered its highest ever December quarterly shipments of 49.4 mnt, our best ever half year, grew the mineral and green energy business globally, strengthened our balance sheet, kept costs low, all while maintaining our excellent safety performance.

“We are now nearing the 200 mnt annualised rate in our iron ore business even before we commission Iron Bridge. Our company has never performed better on the mining, exploration, green hydrogen and green energy development front, while leading the world as the first heavy industry company to achieve real zero with a fully costed plan. Fortescue will step beyond fossil fuels this decade, saving shareholders approximately US$1 billion a year and setting the global stage for all environmentally responsible companies to follow," Gaines further said.