Fortescue Metals Group has reported an “outstanding operating performance” in the fourth quarter of financial year 2020, contributing to record iron ore shipments, lower C1 costs and increased revenue realisation.
Building on the results achieved for the first nine months of the financial year, Fortescue’s operating performance was sustained in the fourth quarter with mining, processing, rail and shipping combining to deliver record shipments of 178.2 million tonnes (mt), 6 per cent higher than FY19 and exceeding the top end of guidance of 177 mt. Record shipments were achieved in the quarter ended in June with 47.3 mt shipped, up from 46.6 mt shipped the fourth quarter of FY19.
Elizabeth Gaines, Fortescue’s chief executive officer, commented, “The entire Fortescue team has delivered strong results for the June quarter, achieving our lowest [Total Recordable Injury Frequency Rate] safety performance of 2.4, as well as record quarterly shipments of 47.3 mt. For FY20 we also delivered record annual shipments of 178.2 mt, while maintaining our industry leading cost position of US$12.94/wmt.
“This was an outstanding performance which underpinned the operational excellence we delivered in FY20, particularly during a quarter when we implemented a range of measures in response to COVID-19. I am very proud of the team’s commitment and cooperation during this time, which has sustained our contribution to the Western Australian and national economies through the reliable and secure supply of iron ore to our customers.
“The impact of COVID-19 continues to be well managed across our operations, ensuring the safety and wellbeing of our team members, their families and our communities.
“During the quarter, we announced important targets to achieve net zero operational emissions by 2040 and a 26 per cent reduction in our Scope 1 and 2 emissions by 2030, positioning Fortescue to address the global climate change challenge with a sense of urgency. Our pathway will include investments in energy infrastructure to increase our use of renewables, as well as a focus on technology and innovation to decarbonise through hydrogen and battery energy solutions.
“Our guidance for FY21 builds on the momentum of a record FY20 as we optimise our integrated operations and marketing strategy, with shipments in the range of 175 - 180 mt. We have a strong balance sheet and clear focus to reinvest in the business, develop our major growth projects and continue to deliver enhanced shareholder returns,” Ms Gaines said.