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Highlights
Fortescue Metals announced record iron ore shipments for the June.
The mining giant exceeded its full-year guidance for iron ore shipments.
The company reported average revenue of US$108 per dry metric tonne.
Fortescue Metals Group Ltd (ASX:FMG) on Thursday announced record iron ore shipments for the June quarter of the financial year 2022. The Australian iron ore miner exceeded its full-year guidance for iron ore shipments as it shipped 49.5 million tonnes of iron ore in the given quarter and 189 million tonnes in the entire fiscal.
Following this positive update, shares of Fortescue Metals jumped 2.09%, or 0.38 points at 10:15 AM (AEST). However, on a year-to-date (YTD) basis, the stock has fallen over 6%. In the past 12 months, the share price is down over 28%. The stock price has remained flat in the past month.
The world's fourth-largest iron ore miner reported an average revenue of US$108 per dry metric tonne for the given quarter. For the financial year 2022, the average revenue was US$100 per dry metric tonne.
Cash and expenditure
The company reported cash level of US$5.2 billion and net debt of US$0.9 billion, as on 30 June 2022, Fortescue has a net debt of US$2.4 billion, as on 31 March 2022.
Total capital expenditure for the quarter was US$766 million and total capital expenditure for FY22 was US$3.1 billion.
New guidance
The ASX-listed iron ore firm has fixed a new guidance for the financial year 2023 in the range of 187 million tonnes to 192 million tonnes.
“Building on another year of record performance, our guidance for FY23 reflects our ongoing commitment to optimising returns from our integrated operations and marketing strategy,” the company said.
What did FMG’s management say?
Fortescue Chief Executive Officer (CEO) Elizabeth Gaines was upbeat about the performance of the company in the June quarter.
“The Fortescue team has delivered excellent results for the June quarter, with record iron ore shipments of 49.5 million tonnes,” said Gaines.
“This outstanding operating performance has resulted in record FY22 shipments of 189 million tonnes, exceeding the top end of guidance. This was achieved in a challenging operating environment due to the impact of COVID-19 throughout the financial year,” added Gains.
Fortescue also said that the costs related to its green energy-focused unit Fortescue Future Industries would come in the range of US$600 million and US$700 million in the financial year 2023.
