Fortescue celebrates $5b milestone in First Nations contracts

Fortescue’s (ASX: FMG) Billion Opportunities program has celebrated more than $5b in contracts and sub-contracts awarded to 200 First Nations businesses since its launch in 2011.

Focusing on sustainable development, the Billion Opportunities program supports individual First Nations businesses, helping build a stronger and more resilient economic future.

To amplify the program’s impact, Fortescue has been in partnership with ANZ since 2017 to provide funding to First Nations businesses.

Fortescue chief executive Dino Otranto commented on the program.

“The success of the Billion Opportunities program is credit to our First Nations business partners who have backed this program from the very beginning,” he said.

“It’s been a privilege to watch them go from strength to strength and build long lasting value.

“We actively seek out First Nations businesses to work with, whether it’s a cleaning supplies company or someone providing earth moving equipment, and initially they may be a very small operation with a handful of people, but by working with them in a collaborative way, we have seen them really grow.”

Strong FY24 results released

Fortescue has also released its FY24 results, with the mining giant recording its third-highest earnings across its 21-year history of $7.5b (US$5.1b).

Net profit after tax (NPAT) totalled $8.4b (US$5.7b), while underlying earnings before interest, tax, depreciation and amortisation was up 7% from FY23 to $15.7b (US$10.7b).

Looking at Fortescue’s production, 191.6mt of iron ore was shipped throughout the year, with first shipments from Iron Bridge contributing to this.

Revenue of $26.8b (US$18.2b) increased 8% from FY23 as the hematite average revenue increased to $151/dmt (US$103/dmt).

A fully franked final dividend of 89¢ has been declared, with it to be paid to shareholders on September 27. Including the interim dividend of $1.08 per share, total dividends declared for FY24 are $1.97 per share, representing a payout ratio of 70% of the NPAT.

Mr Otranto highlighted the milestones achieved throughout the year.

“We celebrated a number of significant milestones, including first ore from the Flying Fish and Hall Hub deposits, as well as the commissioning of our gaseous and liquid hydrogen plant which is the largest of its kind on a mine site in Australia.

“We also now have several electric excavators operational across our mine sites, and as a demonstration of our values in action, our aerodrome at Cloudbreak became the first in Australia to have a fully operational, solar-powered airfield lighting system.”

Fortescue achieved its lowest-ever total recordable injury frequency rate for metals of 1.3 for the 12 months to June 30, 2024, a 28% improvement for the year ending June 30, 2023.

Furthermore, the company remains on track to achieve real zero for Scope 1 and 2 terrestrial emissions across its Australian iron ore operations by 2030.

This will be done by eliminating fossil fuels through the development of renewable power and replacing existing equipment with zero emissions solutions.

Fortescue chief executive Mark Hutchinson says the company is making solid progress towards green energy transition.

“We officially opened our Gladstone Electrolyser Centre in Queensland earlier this year and started selling our electrolyser systems,” he said.

“This technology and our other Fortescue Zero products and solutions are key to everything we are doing.

“Not only are we using them to decarbonise our own mining operations by 2030, we’re also now selling them to other customers to they too can eliminate emissions.”

In FY25, Fortescue expects iron ore shipments to be between 190mt – 200mt, including 5mt – 9mt for Iron Bridge.