Fortescue anticipates higher iron ore shipments in FY2020 based on its performance in the first half of the fiscal year.
The Australian miner expects shipments reach 170-175mt by the end of the year, the upper range of its guidance.
The company lowered its cost guidance from $13.25-13.75/wmt to $12.75-13.25/wmt because strong operational performance during H1-2020 reduced cash production costs to $12.54/wmt.
In the second quarter ended December 31, 2019, Fortescue delivered 46.4mt in iron ore shipments—a 9pc rise over Q2-2019.
The company mined 54.6mt of ore in Q2-2020, increasing output by 11pc over the 49.2mt mined in Q2-2019. It processed 46.2mt of iron ore during the quarter, increasing by 9pc over the 42.5mt during the same quarter in FY-2019.
During Q2-2020, the company benefited from developing mining areas in the previous quarter, which reduced its strip ratio to 1.3 and maintained its year-to-date strip ratio of 1.5.
The miner attributed its strong Q2 performance to sustained steel demand, which resulted in strong products sales and, by extension, higher margins.