Fortescue leveraged the strength of its hematite business to post its highest-ever half-year iron ore shipments in the second half (H2) of 2024.
The company shipped a record 97.1 million tonnes (Mt) of iron ore in H2 2024, attributing the result to a healthy inventory through the supply chain as it managed wet weather impacts in the Pilbara.
Shipments from the Iron Bridge magnetite operation in WA (1.5Mt vs. 1.6Mt in prior quarter) were curtailed by a major shutdown of the mine’s ore processing and concentrate handling facilities during the quarter.
Despite only a three per cent quarter-on-quarter decline in shipments, Iron Bridge saw a 20 per cent drop in ore mined and a 39 per cent decline in overburden removed.
It might be a new venture for Fortescue but Iron Bridge generates significantly higher margins than the company’s hematite business, with Iron Bridge concentrate changing hands at $US117 per dry metric tonne (dmt) during the quarter compared with the $US87/dmt generated from hematite.
This is because Iron Bridge produces a higher-grade product, realising 99 per cent of the average Platts 65 per cent CFR index. Hematite, by contrast, realised only 85 per cent of the average 62 per cent CFR index.
Fortescue chief executive officer Dino Otranto celebrated the company’s H2 achievements.
“It’s been an outstanding operating performance in the quarter, with iron ore shipments of 49.4 million tonnes contributing to our highest-ever half-year shipments of 97.1 million tonnes,” he said.
The market didn’t take to Fortescue’s quarterly very well, with the company’s share price dropping three per cent to $18.53 per share following the announcement.
The company has since regained some ground and was trading at $18.62 at close on Thursday.
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