MINER and iron ore exporter Fortescue Metals Group has reported delivering “a strong start” to the 2021 financial year.
Chief executive Elizabeth Gaines said a record result for first quarter shipments of 44.3mt was achieved with lower C1 costs of US$12.74/wet metric tonne, reflecting a focus on cost discipline.
“Robust demand from our customers contributed to an increase in revenue realisation, 31% higher than the June Quarter and above the 27% increase in the average Platts 62% CFR Index,” Ms Gaines said.
“We have successfully grown and diversified our distribution channels, with portside sales in China by FMG Trading Shanghai now exceeding 10mt since sales commenced in June 2019.
“Our major projects continue on schedule, including the commencement of pre-strip mining and ore stockpiling at the Eliwana Mine and Rail project.”
Ms Gaines said their COVID-19 risk management strategy and key measures remained in place to safeguard their team and operations.
“We are providing ongoing support to our east coast team members who have been impacted by the West Australian border closure and greatly appreciate their ongoing commitment,” she said.
“Against the backdrop of a strong performance for the first quarter, we are well positioned for FY21 to meet our guidance, execute our growth strategy and deliver returns to our shareholders.”