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Highlight:
- Fortescue Metals has achieved record production performance in March 2022 quarter.
- The company has ended march quarter with senior note offerings and acquisition of Williams Advanced Engineering.
- FMG share price has appreciated 2.56% today morning reversing losses of 4.38% in the last 5 days.
ASX-listed iron ore miner, Fortescue Metals Group Limited (ASX:FMG) has released its March 2022 quarterly production report today (28 April). FMG has witnessed a record third quarter operating performance with strong cashflows. Fortescue has even upgraded its guidance for its full year shipments.
Meanwhile, on the ASX, FMG shares have started Thursday’s trade in green, about 2.636% higher than yesterday’s close. FMG shares were trading at AU$20.615 a share today morning (10:30 AM AEST).
Key Highlights of Fortescue’s March production report
- Fortescue’s iron ore shipments in the March quarter of 2022 were about 10% higher than same quarter last year.
- The average revenue represented revenue realisation of 70% Platts (a global price index) and 62% CFR Index (Chinese index) for the quarter. The C1 cost for FMG was however 3% higher than its previous quarter.
- As at March quarter end, the net debt with FMG was of US$2.4 billion, after considering payment of a US$2 billion worth of interim dividend and a capital expenditure worth US$830 million.
- Other than this, post March 2022 quarter, FMG successfully completed a US$1.5 billion offering of its senior notes on 7 April 2022. It also included an inaugural US$800 million worth of Green Senior Note issue.
- Fortescue acquired Williams Advanced Engineering for US$221 million and also announced its development plans for the zero emission Infinity Train.
- FMG’s green arm, Fortescue Future Industries (FFI) also started construction of a green energy manufacturing centre in Queensland while continuing to advance a portfolio of green projects.
Management Commentary
According to Elizabeth Gaines, CEO, Fortescue Metals Group Limited, the excellent operating performance of the business gave it strong results, with record shipments in a span of nine months to March 22 quarter end. She believes that the strong performance of FMG is underpinned by successful delivery and ramp up of its Eliwana project. She also gives credit to the executed integrated operations
and marketing strategy, which has finally led FMG to upgrade its FY22 shipment guidance.
FMG share price performance
On the ASX, as of date, shares of Fortescue Metals Group Limited trade at a market capitalisation of AU$61.88 billion. FMG share price trades in the 52-week range of AU$13.900 to AU$26.580 a share at an average trade volume of over 9 million shares changing hands.
Image Source © 2022 Kalkine Media ®
FMG share price has appreciated 2.56% today in the early trade hours (by 10:30AM AEST), reversing its losses of about 4.38% in the last 5 days. FMG share price as of date is just about AU$5.965 per share below its 52-week high price.
Fortescue’s road ahead
Fortescue has, because of its strong operating performance till March 2022, upgraded its FY22 shipments, C1 costs and capital expenditure guidance. As per FMG’s CEO, Elizabeth Gaines, as Fortescue’s core iron ore business is giving a record performance, the group’s focus is now on decarbonisation and green energy. Fortescue, according to her, is well placed to finish FY22 strongly, meeting customer demand and delivering on strategic priorities. Whether or not these expectations turn reality, will only be known with time.
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