Fortescue quarterly shipments lift, keeps FY guidance

The news: Mining giant Fortescue Metals Group has reaffirmed its full-year shipment guidance after recording higher production in the March quarter, despite significant weather events.

The numbers: The group reported a 19% increase in iron ore mined, reaching 55.5 million wet metric tonnes. Shipments in the March quarter rose 6% from a year ago to 46.1 million tonnes. Average C1 cash costs fell 7% to USD17.53 a tonne.

The context: Chief Executive Dino Otranto said the result was “impressive” given that the group navigated several significant weather events during the quarter. Fortescue remains on track to deliver on its full year guidance of 190 to 200 million tonnes, including 5-9 million tonnes for Iron Bridge. It also reaffirmed production cost guidance of USD18.50 to USD19.75/wmt.

The company said a review of the schedule for its troubled Iron Bridge magnetite project to operate at its nameplate capacity of 22 million tonnes per annum is ongoing, with the assessment to be completed by June. Fortescue owns 70% stake in the operation in WA.