Australian producer Fortescue Metals expects to ship 187mn-192mn t of iron ore in the year to 30 June 2023, after it achieved 189mn t in the 2021-22 fiscal year, despite the delayed start-up of its 22mn t/yr Iron Bridge magnetite concentrate project.
The 187mn-192mn t target for 2022-23 includes 1mn t from Iron Bridge, which had been due to come on stream this year but first production of 67pc Fe concentrate is now scheduled for January-March 2023. Fortescue increased the cost of Iron Bridge magnetite development to $3.6bn-3.8bn from the previous guidance of $3.3bn-3.5bn in April. The guidance for production costs and capital expenditure is based on an assumed 2021-22 average exchange rate of A$1 per $0.73 from the previous projection of $0.72.
Fortescue shipped 49.5mn t in April-June, up from 46.5mn t in January-March and from 49.3mn t in April-June 2021, as it continued to ramp up its Eliwanna mine.
The firm's cash costs rose to $17.19/wet metric tonne (wmt) in April-June from $15.31/wmt in January-March, as inflation increased across the Australian mining sector. It expects prices to average $18-18.75/wmt for 2022-23, up from an average of $15.91/wmt in 2021-22, which was above guidance of $15-15.50/wmt.
Fortescue realised a price of $107.84/dry metric tonne (dmt) in April-June, or 78pc of the benchmark 62pc Fe price. It received $137.90/dmt in January-March, or 70pc of the 62pc benchmark price. The reduced discount reflected wider market discount reductions, with Fortescue shipping more of its lower grade super special fines in the latest quarter than in the previous.
Fortescue shipped 24pc more super special fines in 2021-22 than in 2020-21, and 21pc more Fortescue Blend, which more than offset a 77pc decline in lump shipments.
The Argus ICX iron ore was last assessed at $112.25/dry metric tonne (dmt) cfr Qingdao on a 62pc Fe basis on 27 July, down from $160.30/dmt on 8 March and from a high of $235.55/dmt on 12 May 2021. Argus assessed 58pc Fe at $99.25/dmt cfr Qingdao on 25 July, down from $142/dmt on 8 March and from a high of $207.10/dmt on 12 May 2021.
| Fortescue Metals iron ore sales | mn t | ||||||
| Fe Content | Apr-Jun '22 | Jan-Mar '22 | Apr-Jun '21 | FY 21/22 | FY 20/21 | FY 19/20 | |
| West Pilbara fines | 60.1 | 3.3 | 3.8 | 4.3 | 15 | 17 | 17.9 |
| Kings Fines | 57.3 | 4.3 | 3.9 | 3.9 | 15 | 15.2 | 15.1 |
| Fortescue Blend | 58.3 | 20.8 | 20.7 | 17.6 | 83.1 | 68.5 | 72.7 |
| Fortescue Lump | 1.2 | 1.1 | 4.2 | 3.6 | 15.5 | 12.9 | |
| Super Special Fines | 56.7 | 19.1 | 17 | 15.3 | 70 | 56.4 | 59.4 |
| Other | 0.8 | 0 | 4 | 2.3 | 9.6 | 0.2 | |
| Total | 49.5 | 46.5 | 49.3 | 189 | 182.2 | 178.2 | |
| C1 cash costs ($/wmt) | 17.2 | 15.3 | 15.2 | 15.9 | 13.9 | 12.9 | |
| Source: Fortescue | |||||||
