FMG: Iron ore shipments up 6%; increases guidance for FY'21

Fortescue Metals Group - world's 4th largest iron ore producer witnessed 6% rise in iron ore shipment to 89.6 mn t in H1CY'20, as against 84.9 mn t in H1 CY'19 on strong demand from China as well as other markets. On a quarterly basis too, the miner recorded a rise in shipment to 47.3 mn t Q2 CY'20 compared to 46.6 mn t in Q2 CY'19.

The miner achieved record shipment in FY'20 (July'19-June'20) at 178.2 mn t, exceeding the set target of 177 mn t and up 6% against 167.7 mn t in FY'19 (July'18-June'19).

West Pilbara fines shipment up 6% in H1CY'20
West Pilbara fines shipment for the half year CY'20 witnessed at 9 mn t, up 6% against 8.5 mn t H1 CY'19. On a quarterly basis, the sales picked up to 4.9 mn t in Q2 CY'20 as compared to 4.7 mn t in Q2 CY'19. For the fiscal year FY'20 (July'19-June'20) west Pilbara fines shipment recorded at 17.9 mn t up sharply compared to 9 mn t in FY'19 (July'18-June'19).

FMG iron ore production down 6% in H1 CY'20
The total mined ore for the half year CY'20 recorded at 99.1 mn t, as compared to 105.6 mn t in H1 CY'19.

FMG's mined ore production stood at 204.3 mnt in FY'20 (July'19-June'20), down against 206.7 mn t in FY'19. On a quarterly basis, the production volume fell to 57.2 mn t in Q2 CY'20 as against 57.6 mn t in Q2 CY'19.

Guidance

* FY'21 guidance: FMG FY'21 (July 20-June'21) shipment guidance set at 175-180 mn t.

* Cost guidance for FY'21 : It has been set at $13-13.5/wmt