Fortescue Metals achieves record iron ore shipments for FY23

Iron ore shipments of 48.9mt in Q4 FY23 contributed to Fortescue Metals (ASX:FMG) achieving record shipments of 192mt for FY23.

This is 2% higher than FY22 and achieved the top end of market guidance.

FY23 represents the fourth consecutive year of record shipments, reflecting strong performance across the entire supply chain.  

Average revenue totalled US$96/dmt (A$141.80/dmt) in Q4 FY23, realising 87% of the Platts 62% CFR Index, and average revenue in FY23 totalled US$95/dmt (A$140.32) in FY23.

This strong cashflow generation contributed to a cash balance of US$4.3b (A$6.35b) and net debt of US$1b (A$1.48b) as of June 30, 2023, comparted to net debt of US$2.1b (A$3.1b) as of March 31, 2023.

Fortescue chief executive Fiona Hick commented on the record shipment.

“The Fortescue team has delivered outstanding results for the June quarter, with iron ore shipments of 48.9mt, contributing to our highest ever annual shipments of 192mt, achieving the top end of shipments guidance,” she said.

In late July, Fortescue shipped the first delivery of high-grade magnetite to Vietnam from its newly built Iron Bridge operations in WA.

FY24 shipments are anticipated at around 7mt with ramp up to full production capacity of 22mt per annum expected within 24 months.

Iron Bridge is expected to transition to operational production in mid-August 2023 while completion of the construction of dry circuit B remains on track for September 2023.

Additionally, first ore was mined and loaded on train at the Belinga iron ore project in Gabon with the first shipment expected by the end of the year.

Ms Hick said these milestones are important for the company.

“Fortescue recently celebrated several milestones, including first magnetite concentrate production from Iron Bridge,” she said.  

“It signifies Fortescue’s entry into the high grade iron ore market segment which enables us to provide our customers with an enhanced product offering.

“The Belinga iron ore project in Gabon continues to make strong progress with the first ore loaded on train and delivered to port during the quarter, less than six months from when the mining convention was signed.”

Fortescue’s guidance for FY24 shipment falls between 192mt to 197mt, including roughly 7mt from Iron Bridge.