FMG: Iron Ore Shipments Hit Record High at 88.6 MnT in H2CY19

Fortescue Metals Group - world's 4th largest iron ore producer, depicted record high half yearly shipments in H1 FY20 (H2 CY19). The shipments recorded 4% rise to 88.6 MnT as against 84.9 MnT in H1 CY19.

On quarterly basis, shipment picked up 10% in Q4CY19 to 46.4 MnT compared to 42.2 MnT in last quarter (Q3 CY19), amid improved ore processing facility. The shipments for Q4 CY19 increased 9% as against 42.5 MnT in Q4 CY18.

West Pilbara fines shipment up 9% Q-o-Q

West Pilbara fines shipment for the quarter Q4 CY'19 witnessed at 4.7 MnT, up 9% against 4.3 MnT in last quarter (Q3 CY19). The shipment stood in line with laid guidance at 17-20 MnT for FY20.

FMG iron ore production up 8% in Q4 CY19

FMG recorded mined ore production at 54.6 MnT in Q4 CY19, up 8% as against 50.6 MnT in last quarter (Q3 CY19). On yearly basis, the production volume increased 11% as against 49.2 MnT in Q4 CY18.

Recent Updates

* FY'20 guidance: FMG FY'20 (July'19-June'20) shipment guidance expected to be towards upper end of laid guidance at 170-175 MnT, inclusive of 17-20 MnT of west Pilbara Fines product. The miner C1 (cash production cost) is lowered to a range of USD 12.75-13.25/wmt.

*Eliwana mine and rail project: The project is progressing on schedule and ore is expected to be delivered in Dec 2020.

*Iron Bridge Magnetite Project: The project is on schedule to produce premium 67% iron grade in first half of 2022.