Fortescue sees higher net profit, increases iron ore shipment guidance

Thursday, 18 February 2021 15:27:56 (GMT+3)   |   Istanbul

Australian iron ore miner Fortescue Metals Group has announced its financial results for the first half of the financial year 2020-21 ended on December 31.

During the given period, Fortescue’s net profit amounted to US$4.1 billion, rising by 66 percent compared to the same period of the previous financial year, while the company’s sales revenue amounted to US$9.3 billion, up 44 percent on year-on-year basis owing to the fact that the average realized iron ore price was $114/mt, up by 41 percent year on year amid strong iron ore demand. Meanwhile, Fortescue’s EBITDA increased by 57 percent year on year to US$6.6 billion in the given period.

Fortescue shipped 90.7 million mt of iron ore during the first half, 2.4 percent higher than the same period of the previous financial year.

In the first half of financial year 2020-21, the company’s total capital expenditure was recorded at $1.9 billion and is expected to be at the upper end of the range of $3-3.4 billion in the financial year 2020-21, while its iron ore shipments are predicted to be at the range of 178-182 million mt in the same period, compared to 175-180 million mt in the previous forecast.

Fortescue’s integrated operations and marketing strategy and strong customer demand contributed to record half-year shipments, earnings and operating cash-flow. “Completion of key milestones across our Eliwana and Energy projects, strongly positions Fortescue to continue to deliver sustained returns to our shareholders,” said Fortescue’s chief executive officer Elizabeth Gaines.

Meanwhile, the company stated that a detailed review of the Iron Bridge Magnetite Project has been completed, indicating a revised preliminary capital estimate of US$3 billion, with first production expected in the second half of the current financial year. The technical and commercial assessment is underway and is scheduled to be completed in 12 weeks.

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