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Australia: FMG's iron ore shipments rise 6%, q-o-q, in Q2CY'22

Australia’s leading miner, Fortescue Metals Group (FMG), released its operational results for the June 2022 quarter. Iron ore shipments in Q2CY’22 were re...

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28 Jul 2022, 17:48 IST
Australia: FMG's iron ore shipments rise 6%, q-o-q, in Q2CY'22

Australia's leading miner, Fortescue Metals Group (FMG), released its operational results for the June 2022 quarter. Iron ore shipments in Q2CY'22 were recorded at 49.5 million tonnes (mnt), up by 6% q-o-q compared to 46.5 mnt in Q1CY22.

However, on a yearly basis, the shipments were stable as against 49.3 mnt in Q2CY'21.

Iron ore production up in Q2

Total quantity of mined ore for the second quarter increased to 59.2 mnt, up 15% q-o-q as compared to 51.6 mnt in Q1CY'22. However, the output decreased by 9% y-o-y compared to 64.9 mnt in the same quarter last year.

Fortescue Metals Group (FMG) Production Summary

Volume references are based on wet metric tonnes (wmt).
Product is shipped with approximately 9% moisture.

Production guidance

  • Iron ore shipment guidance for FY'23 revised: Based on the continued strong operating performance in Q2CY'22, the guidance for iron ore shipments has increased to 187-192 mnt from 185-188 mnt.

  • Cost guidance for FY'23: Cost guidance has been revised to $18.00-18.75/wmt against $15.75-16.00/wmt, reflecting the lag effect of ongoing inflationary pressures, with the increase driven by diesel, labour rates, ammonium nitrate and other consumables together with mine plan driven cost escalation.

Fortescue Chief Executive Officer, Elizabeth Gaines, said, "The Fortescue team has delivered excellent results for the June quarter, with record iron ore shipments of 49.5 million tonnes. This outstanding operating performance has resulted in record FY22 shipments of 189 million tonnes, exceeding the top end of guidance. This was achieved in a challenging operating environment due to the impact of COVID-19 throughout the financial year. Building on another year of record performance, our guidance for FY23 reflects our ongoing commitment to optimising returns from our integrated operations and marketing strategy, with total shipments in the range of 187 - 192 million tonnes."

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28 Jul 2022, 17:48 IST

 

 

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