Australian iron ore miner Fortescue Metals Group has announced its financial results for the financial year 2017-18 ended June 30.
During the given period, Fortescue's net profit amounted to US$878 million, declining by 58 percent compared to the corresponding period of the previous financial year. The company's sales revenue amounted to US$6.88 billion, down 18 percent year on year, as the average iron ore price received reduced to US$44/mt. The reduction in average price received is primarily attributable to high steel mill profitability in China which incentivizes use of higher iron content ores to maximize production. Fortescue's EBITDA decreased by 33 percent year on year to US$3.18 billion in the first half of the given financial year.
“The Fortescue team has achieved an outstanding finish to FY18 with a record June quarter delivering total shipments of 170 million mt for the year,” Elizabeth Gaines, CEO of Fortescue, said.
Fortescue said that its Eliwana mine and rail project has maiden reserves of 213 million mt of 60 percent iron content product named West Pilbara Fines and the production will start in the second half of the financial year 2018-19. The introduction of West Pilbara Fines in FY19 from existing operations will enhance operating margins.
