Fortescue Metals Group (FMG) has reiterated its iron ore production guidance for FY21 at 175-180mn mt and its CAPEX guidance between $3-3.4bn, the company announced while reporting its FY20 results.
The company’s net profit increased by 49pc to $US4.7bn in FY20, while operating sales revenue rose by 29pc to $12.8bn as compared to $9.96mn last year.
The Australian giant delivered record shipments, revenue, earnings, and cash flow during FY20 due to its operations and marketing strategy and high customer demand, it said.
Iron ore shipments grew by 6pc at 178.2mn mt this year as compared to 167.7mn mt last year. Its average realised price rose to $79/dmt (dry metric tonnes), beating the 16pc increase in the average Platts 62pc CFR Index.
Fortescue has also revised its climate change target and has set a target of zero net emissions from its operations by 2040, including the reduction of Scope 1 and 2 emissions from existing operations by 26pc by 2030.
| Iron ore production and sales | |||
|---|---|---|---|
| Operating metrics | FY20 | FY21 | Change(%) |
| Ore mined (mn wmt) | 204.3 | 206.7 | -1% |
| Ore processed (mn wmt) | 176.3 | 176.9 | 0% |
| Ore shipped (mn wmt) | 178.2 | 167.7 | 6% |
| Ore sold (mn wmt) | 177.2 | 167.5 | 6% |
| Realised price ($/dmt) | 78.62 | 65.06 | 21% |
| C1 cost ($/wmt) | 12.94 | 13.11 | -1% |
(wmt = wet metric tonnes; dmt = dry metric tonnes)