Fortescue has raised its FY 2020 iron ore guidance to 175-177mn mt from 170-175mn mt on the heels of a record third quarter.
The company, a core iron ore supplier to China, expects demand from its key Asian customer to remain high through the rest of the year. Moreover, Elizabeth Gaines, Fortescue’s chief operating officer, said, while the COVID-19 pandemic has catalysed economic uncertainty and precarity around the world, the company’s balance sheet “has never been stronger.” The iron ore miner expects to remain profitable and create jobs moving forward.
During Q3 FY2020, the company shipped 42.3mn mt of iron ore, a 10pc increase over the 38.3mn mt shipped in Q3 FY2019, and setting year-to-date record shipments of 130.9mn mt. However, shipments declined from 46.4mn mt in Q2 FY2020.
The company’s ore output decreased by 13pc to 41.9mn mt during the third quarter of its fiscal from 48mn mt during Q3 FY2019, and declined by 23pc from 54.6mn mt one quarter earlier.
Fortescue’s delivered products averaged $73/dmt, while the company managed $4.2bn of cash on hand.