FMG: Iron Ore Shipments Up 10% Y-o-Y in Q1 CY20; Upgrades Shipment Guidance

Fortescue Metals Group - world's 4th largest iron ore producer, depicted record high third quarter shipment in Q3FY20 (Q1 CY20). The shipments recorded 10% rise to 42.3 MnT despite weather disruptions and COVID-19 measures as against 38.3 MnT in Q1 CY19.

Fortescue is a core supplier of iron ore to China and they see strong ongoing demand for FMG's products and anticipate a steady recovery in economic activity in that market.

On quarterly basis, shipment dropped 9% in Q1CY20 compared to 46.4 MnT in last quarter (Q4 CY19.

West Pilbara fines shipment up 8% in Q1CY20

West Pilbara fines shipment for the quarter Q1 CY'20 witnessed at 4.1 MnT, up 8% against 3.8 MnT Q1 CY19. On quarterly basis, the shipment dropped 13% as compared with Q4 CY19 output at 4.7 MnT.

FMG iron ore production down 13% in Q1 CY20

FMG recorded mined ore at 41.9 MnT in Q1 CY20, down 13% as against 48 MnT in Q1 CY19. On quarterly basis, the production volume fell 23% as against 54.6 MnT in Q4 CY19.

* FY'20 guidance for iron ore shipments increased: FMG FY'20 (July'19-June'20) shipment guidance upgraded to 175-177 MnT, (previously upper end of 170-175 MnT). The miner C1 (cash production cost) is to a range of USD 12.75-13.25/wmt.

*Iron Bridge Magnetite Project: The project is on schedule and budget with concentrate production scheduled in first half of 2022.

*Autonomous Haulage (AHS): FMG focuses on driverless trucks to cut costs. The project is under progress with 163 trucks operating autonomously. The conversion to fully autonomous mining is expected to be completed by second half of 2020.