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Fortescue Increases Fiscal Year Shipment, Cost Guidance

By Rhiannon Hoyle

 

Fortescue Metals Group Ltd. raised its forecast for annual iron-ore exports following a 10% year-on-year increase in its third-quarter shipments.

The Australian miner also increased its cost guidance, citing rising inflation pressures, and raised its project capital estimate for the Iron Bridge Magnetite project.

Fortescue on Thursday said it now expects to ship between 185 million and 188 million metric tons of iron ore in the year through June. It had previously forecast shipments of 180 million-185 million tons.

The miner said it shipped 46.5 million tons of iron ore in the three months through March, up from 42.3 million tons in the same period a year ago.

"This strong performance is underpinned by the successful delivery and ramp up of the Eliwana project, and execution of our integrated operations and marketing strategy," said Chief Executive Elizabeth Gaines.

Still, Fortescue said strong volumes and ongoing cost management were offset by rising inflation.

Fortescue said it now expects C1 costs of between $15.75-$16.00 a wet ton this fiscal year, up from an earlier estimate of $15.00-$15.50.

The company said it has revised the Iron Bridge capital estimate to $3.6 billion-$3.8 billion from $3.3 billion-$3.5 billion. It also refined its fiscal year 2022 capital expenditure estimate--excluding spending by its clean energy venture, FFI--to $3.0 billion-$3.2 billion from $3.0 billion-$3.4 billion.

 

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

 

(END) Dow Jones Newswires

April 27, 2022 19:35 ET (23:35 GMT)

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