Australia: FMG's iron ore shipments fall by 6% q-o-q in Q3CY'23, guidance intact

Fortescue Metals Group (FMG), Australia's leading miner, has released its operational results for the September quarter. Iron ore shipments in third quarter of calendar year 2023 (Q3CY'23) were recorded at 45.9 million tonnes (mnt), down by 6% q-o-q. The drop in shipments was due to increased maintenance activity and lower stocks at port following strong shipments in the previous quarter.

Meanwhile, shipments fell by 3% y-o-y as against 47.5 mnt in Q3CY'22.

Iron ore production rises in Q3

Total mined ore for the third quarter rose to 56.2 mnt, up by 4% q-o-q. Output increased by 3% y-o-y compared to 54.8 mnt in the same quarter last year.

FMG's production

Production guidance

Shipment guidance for FY'24: Based on the continued strong operating performance in Q3CY'23, the guidance for iron ore shipments remained stable at 192-197 mnt.

Cost guidance for FY'24: Cost guidance remained unchanged at $18.00-19/wmt.

Fortescue Metals Chief Executive Officer, Dino Otranto, said: "It's been a solid quarter for the Metals business with shipments of 45.9 million tonnes contributing to the significant milestone of two billion tonnes shipped since we commenced operations."

"During the quarter, Iron Bridge transitioned to operational production and we achieved the first shipment of high-grade magnetite product. Commissioning activities are progressing well as we focus on a safe and efficient ramp up. Also supporting our growth strategy is the Belinga Iron Ore Project in Gabon where exploration and studies activities continue to advance," Otranto further said.