Australia: FMG lifts iron ore shipment guidance to 178-182 mn t

Australia's leading miner Fortescue Metals Group (FMG) has released its quarterly results for Q1 CY'21 today. The miner has set FY'21 (July 20-June'21) shipment guidance at 178-182 mn t. The miner has increased the guidance against its last announcement of 175-180 mn t.

The miners' iron ore shipment in Q1 CY'21 was at 42.3 mn t. The shipments stood stable as compared to Q1 CY'20.?Underlying demand for iron ore remains strong and in conjunction with seasonally weaker supply, index prices strengthened during the March quarter. However, the miner registered a 9% drop in quarterly shipment as against 46.4 mn t in Q4 CY'20.

FMG iron ore production picked 28% in Q4 CY'20-The total mined ore for the first quarter (Q1 CY'21) increased by 28% to 53.6 mn t, as compared to 41.9 mn t in Q1 CY'20. On quarterly basis, output increased 7% as against 50 mn t in Q4 CY20.

Key updates

• The commissioning of the Eliwana mine (Dec'20) has contributed to an increase in both ore mined and processed during the quarter, despite the impact of significant rainfall across operations in the Pilbara.
  
  
• Cost guidance for FY'21 has been set at $13.5-14/wmt.