Photo by: Bloomberg
PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported record half-year revenues during the six months ending December, after iron-ore shipments increased by 7% on the previous corresponding period.
Iron-ore shipments in the first half of the 2020 financial year reached 88.6-million tonnes, up from the 82.7-million tonnes shipped in the first half of 2019, with the realised price for iron-ore increasing by 73% in the same period, from $46.54/t to $80.36/t.
The miner on Wednesday said that the improved price outcomes in the first half of 2020 reflected market conditions and product mix changes within Fortescue’s portfolio, including the introduction of West Pilbara Fines.
Revenue for the half-year was up by 83%, from $3.54-billion to $6.48-billion, while underlying earnings before interest, taxes, depreciation and amortization increased by 159%, from $1.63-billion to $4.22-billion, and net profit after tax increased by 281%, from $644-million to $2.4-billion.
“We are continuing to generate strong margins, driven by our industry leading cost position and product strategy, resulting in a 281% increase in net profits after tax, delivering outstanding shareholder return,” Fortescue CEO Elizabeth Gaines said on Wednesday.
“Our integrated mine to market infrastructure is delivering sustained operational efficiencies across the business and both of our significant growth projects, Eliwana and Iron Bridge, are progressing on schedule and budget.
“Fortescue is investing $700-million in energy transmission infrastructure and solar-gas hybrid generation, to optimise existing assets and deliver low cost power to the Iron Bridge project. Consistent with our commitment to reduce emissions, it is estimated that 25% to 30% of stationary energy will be powered by solar on completion of these developments.”
Gaines said that the miner’s continued focus on disciplined capital management, along with a flexible balance sheet, positioned Fortescue strongly for the next phase of growth and the delivery of an enhanced return to shareholders.
For the full 2020, Fortescue is expected to ship at the upper end of between 170-million and 175-million tonnes, with C1 cash costs expected to range between $12.75/t and $13.25/t.