Fortescue First-Quarter Shipments Down, Costs Up — Update

By Rhiannon Hoyle

Fortescue Metals Group on Thursday said first-quarter iron-ore shipments fell by 6% on-quarter and costs rose.

The world's fourth-largest iron ore producer reported shipments of 45.9 million metric tons for the three months through September, down from 48.9 million tons the quarter immediately prior. Shipments totaled 47.5 million tons in the year-earlier period.

The company, which shipped a total 192.0 million tons in fiscal 2023, reiterated an annual production forecast of between 192 million and 197 million tons for the year through June 2024.

Fortescue reported a Pilbara hematite C1 cost of $17.93 a wet ton for the quarter, up from $17.57 a wet ton the three months prior. In the year-prior period, its cost was $17.69 a wet ton.

The company stuck with annual cost guidance for fiscal 2024 of $18.00-$19.00 a wet ton and said it continues to focus on productivity and efficiency.

The miner runs a network of iron-ore pits in remote northwest Australia. During the quarter, Fortescue began producing iron ore at a new operation called Iron Bridge.

Fortescue said it made one shipment of high-grade magnetite concentrate from that mine during the period. Revenue from the Iron Bridge sale was $130.84 a ton, it said.

Average revenue from its other operations was $99.75 a ton, Fortescue said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

October 25, 2023 19:34 ET (23:34 GMT)

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