Fortescue reported a strong third quarter with robust performance across the supply chain contributing to record volumes in total ore mined.
Total iron ore shipments for the March quarter reached 48.4 million tonnes (Mt), a 5 per cent increase from 46.1Mt last year and a record for any third quarter in the company’s history.
This contributed to total shipments of 148.7Mt in the nine months to March 31, 4 per cent higher than the same period last year.
Total ore mined was 59.5Mt in the quarter, 7 per cent higher than in the prior-year period with an increase in volumes across both the Hematite Operations and Iron Bridge. This contributed to total ore mined in the nine months to March 31 of 181Mt, 4 per cent higher than the same period last year.
The performance was bolstered by a sharp focus on cost management. Hematite C1 unit costs fell to US$18.29 per wet metric tonne, a 4 per cent improvement over the previous quarter.
However, the premium Iron Bridge magnetite operation faced headwinds, with production impacted by Tropical Cyclones Mitchell and Narelle. Consequently, Fortescue has slightly revised its full-year guidance for Iron Bridge shipments to 9–10Mt.
Fortescue CEO Dino Otranto emphasised that the company is reshaping its operations to eliminate fossil fuels. The company is currently constructing the 133MW Nullagine Wind Project and the 440MW Solomon Airport solar farm, which is set to become Western Australia’s largest solar development.
“We’re getting on with decarbonising our operations and we’re already seeing the benefits. Given volatility in global energy markets, there’s never been a clearer reason why this matters,” the CEO said.
“For us, it’s about strengthening energy security, lowering costs and eliminating emissions.”
This quarter also saw the Board approve an additional US$680 million investment to expand green energy capacity. This infrastructure will eventually feed into a massive 2.3GW renewable grid, designed not only to power mines but to meet the growing global demand for green power from data centres and heavy industry.
The company’s diversification strategy reached a milestone with the successful acquisition of Alta Copper, securing the Cañariaco Copper Project in Peru.
Meanwhile, at home, the Green Metal Project at Christmas Creek is nearing its first hot metal production, expected in the June quarter.
Fortescue Growth and Energy CEO, Gus Pichot said: “Copper is a core pillar of our growth and diversification strategy and the acquisition of Alta Copper builds on our existing critical minerals exploration activity.
With a cash balance of US$4.2 billion, Fortescue remains on track to meet its full-year iron ore shipment guidance of 195–205Mt.
The company expects energy capital expenditure of approximately US$300 million and net operating expenditure of approximately US$400 million.
