Australian Miner Fortesque Group (FMG) shipped 42.3mn mt of iron ore in Q3 FY2021 (January-March), down by 9pc from Q2 but similar to the prior year quarter. Year-to-date shipments (June-March) rose to 132.9mn mt, up by 2pc from the prior period, according to the company’s quarterly operations update.
FMG’s Chinese Sales entity, FMG Trading Shanghai sold 2.6mn mt in Q3 from regional ports in China, with sales of 8.4mn mt in the nine months ended March 2021.
Commissioning of the Eliwana mine in December 2020 has added to the company’s output in Q3 despite the impact of heavy rainfall across its operations in the Pilbara. Guidance for full-year iron ore shipments is unchanged at 178-182mn mt, while C1 costs estimated at $13.50-14.00/wmt.
In Q3, the company’s average revenue of $143/dmt rose by 17pc from Q2. However, its C1 cost of $14.90/wmt rose by 16pc from Q2 due to seasonally lower volumes and the strengthening of the Australian dollar. Year-to-date C1 cost was $13.45/wmt.
In Q3, the technical and commercial assessment of the Iron Bridge magnetite project commenced. The project is scheduled to be completed in late May. The annual production capacity of the project is 22mn mt of Fe 67pc suitable for pellet feed and blending with sinter fines.
FMG announced its revised strategy to achieve carbon neutrality by 2030 which is 10 years earlier than its initial target. Its decarbonisation efforts include trials to deploy renewable energy in the Pilbara, which aims to convert iron ore to green iron at low temperatures, without the use of coal.
FMG is set to finish the financial year strongly with record performances, stated the company release.