Fortescue shares slide as net debt missed expectations
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More news: Fortescue shares lowered in morning trade on the ASX, despite the mining group recording its highest ever half-year shipment volumes.
Fortescue shares fell 1.5% to $18.75 by 11:15am AEDT, having shed more than 30% over the last 12 months.
UBS analyst Lachlan Shaw said that while shipments were in line and costs beat consensus, its hematite realised price of US$87 ($138.63) per dry metic tonne missed expectations. The miner's net debt fell to US$2 billion, missing consensus estimates of US$1.4 billion which Shaw said "may weigh on expected returns".
Fortescue iron ore shipments edge up, tracking guidance
The news: Mining giant Fortescue reported a rise in iron ore shipments in the December quarter and reaffirmed its full-year guidance for shipments, production costs and capital expenditure.
The numbers: Total iron ore shipments in Q2 grew 1% year on year to 49.4 million tonnes, taking first-half shipments to 97.1 million tonnes. The miner has guided shipments of between 190 million and 200 million tonnes for the year.
Costs of USD18.24 ($29.09) per wet metric tonne was 10% lower than the previous quarter. This fell below the full-year guidance range of USD18.50 ($29.50) to USD19.75 per wet metric tonne.
The company recorded cash of USD3.4 billion and net debt of USD2 billion at 31 December, after capital expenditure of USD1 billion in the quarter.
The context: Fortescue hailed its "highest ever half year shipments" and said that the transition of its diesel mining fleet to zero emissions by 2030 was boosted after awarding a major contract to Chinese heavy machinery manufacturer Xuzhou Construction Machinery Group (XCMG) during the quarter.
The source: ASX announcement
