Fortescue Metals Group (ASX:FMG) managed to recover most of the tonnage lost due to December’s derailment and adverse weather in the first quarter of this year, according to its 2023-24 production and sales report released on Thursday.
Fortescue reported shipping 191.6 million tonnes of iron ore, including a small contribution from its 69% Iron Bridge magnetite mine for the 12 months to June 30, compared to 192.0 million tonnes the previous year.
A record-breaking 53.7 million tonnes (including a small tonnage from Iron Bridge) were shipped in the three months to June, allowing Fortescue to catch up and nearly surpass 2022-23’s record performance.
This June quarter effort represented a 10% increase from the previous year and occurred despite rivals BHP and Rio Tinto reporting solid but steady performances during their latest reporting periods.
Fortescue had previously forecast total iron ore shipments of between 192 million and 197 million tonnes for the 12-month period, including approximately 2 million tonnes from its Iron Bridge project. As anticipated, Iron Bridge fell short with just 1.2 million tonnes.
In April, the company indicated it expected annual iron ore shipments at the lower end of its forecast range due to an ore car derailment and wet weather affecting its operations. Leaks in a water pipeline also slowed production at its Iron Bridge site, though some issues may have been mitigated by changes in water management.
Nevertheless, Fortescue remained optimistic about its performance in the latest quarter, which saw iron ore shipments reach a new all-time high of 53.7 million tonnes, up 10% from the same period a year ago.
"This record result demonstrated the efficiencies gained through our recovery plan following the ore car derailment in December 2023," CEO Dino Otranto said in Thursday’s statement.
Fortescue’s quarterly and full-year production and sales report followed news of a significant restructuring, announced 8 days earlier, which will result in 700 job losses and the merger of the company’s energy and iron ore businesses.
Looking ahead to 2024-25, Fortescue expects to ship between 190 million and 200 million tonnes of iron ore in the 12 months through June 2025, including 5 million to 9 million tonnes of magnetite from Iron Bridge.
