Fortescue shares lower as Q1 result falls short of estimates
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More news: Fortescue shares dived on the ASX after the metal miner's Q1 pricing and costs missed forecasts.
Fortescue shares were down 3.3% to $19.12 by 11:55am AEDT, having shed more than 30% since January.
RBC Capital Markets analyst Kaan Peker said Fortescue's result was "marginally weaker", with iron ore shipments meeting expectations but pricing for both magnetite and hematite assets missing consensus forecasts. Hematite costs were also marginally above estimates, he said.
What they said: Importantly, guidance for FY25 shipments, C1 cost and capital expenditure remains unchanged (as expected)," Peker said.
"Given the pricing and [free cash flow] miss, we expect a minor negative reaction to today's result," he said.
Fortescue posts Q1 shipments uptick, reaffirms guidance
The news: Mining giant Fortescue reported a rise in iron ore shipments in the September quarter and reaffirmed its full-year guidance for shipments, production costs and capital expenditure.
The numbers: Total iron ore shipments grew 4% year on year to 47.7 million tonnes, a company record for the September quarter.
Cost of USD20.16 ($30.39) per wet metric tonne was up 12% on Q1 FY24, impacted by a higher strip ration in the quarter, as well as inflationary pressures.
The company recorded cash of USD3.4 billion and net debt of USD2.1 billion at 30 September, after payment of its FY24 final dividend of USD1.9 billion and capital expenditure of USD800 million in the quarter.
The context: Fortescue said its "strong operating performance" in the first quarter means it is on track to meet full-year guidance.
Andrew Forrest’s group also noted its USD2.8 billion partnership with global equipment manufacturer Liebherr, announced last month, which will see the companies jointly develop and validate a range of zero emission mining solutions.
The source: ASX announcement
