Fortescue ships record quantities of iron ore

FORTESCUE Metals Group has reported record quarterly iron ore shipments.

The world’s No.4 iron ore miner shipped 46.5 million tonnes in the June quarter, compared with 44.7 million tonnes a year ago, the company said yesterday. UBS had expected shipments of 46.3 million tonnes for the period.

Full-year shipments came in at 170 million tonnes, with the Perth-based miner giving full-year production guidance of 165 million tonnes to 173 million tonnes.

Cash production costs averaged $US12.17 per wet metric tonne in the June quarter, 7.4 per cent below the previous quarter. The miner said it expected to meet its cost guidance for 2018 and set a target of $US12-13 per wet metric tonne for FY19.

The company forecast fullyear total capital expenditure of $US1.2 billion.

Fortescue also said the discount for its lower-quality ore had narrowed, with the miner receiving 63 per cent of the average benchmark Platts 62 CFR index for its ore during the quarter, up from 62 per cent in the previous quarter.

Meanwhile, Andrew Forrest’s Fortescue is engaged in a tussle with rival Gina Rinehart’s Hancock Prospecting to secure control of Atlas Iron, whose acquisition could unlock greater port capacity along with additional highergrade iron ore tenements.