Fortescue shares tumble after missing FY guidance
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More news: Fortescue shares fell in morning trading on the ASX after the metal miner fell short of its full-year production guidance.
Shares lowered 3.5% to $20.57 by midday AEST and over the last 12 months has dropped 11.4%.
Fortescue notches record Q4 but misses guidance
The news: Fortescue reported record iron ore shipments for the June quarter but missed its full-year guidance as the mining group widened its guidance range for FY25.
The numbers: Fortescue shipped 53.7 million tonnes (Mt) of iron ore in Q4, 10% higher than the prior corresponding period. This contributed to total shipments of 191.6 Mt in FY24, short of its guidance range of 192 Mt to 197 Mt.
Fortescue set FY25 guidance of 190 Mt to 200 Mt in iron ore shipments.
The miner's average revenue of USD92.12 ($140) per dry metric tonnes (dmt) of iron ore during the quarter also came in lower than the benchmark index, representing 82% of the average USD111.82 per dmt.
Fortescue's cash balance was USD4.9 billion at 30 June, up from USD4.1 billion at 31 March. Gross debt increased from USD5.3 billion to USD5.4 billion over the quarter, while net debt reduced from USD1.2 billion to USD0.5 billion.
The context: Billionaire Andrew Forrest's mining group noted that in FY25, it will bring together its metals and energy businesses into "One Fortescue", simplifying its structure and removing duplication.
The company also said it remains "firmly committed" to its target of "Real Zero" by 2030, without voluntary carbon offsets. Fortescue is progressing its initial four green hydrogen projects across Australia, the US, Norway and Brazil, with projects in Morocco, Oman, Egypt and Jordan following next.
The source: ASX announcement
