Fortescue Metals' (ASX:FMG) best day in 5 months on annual guidance pop

Company News

by Melissa Darmawan

The world’s fourth largest iron ore producer Fortescue Metals (ASX:FMG) revealed that shipments rose 10 per cent in the March quarter as the iron ore miner raised its  guidance for annual exports. 

Shipments in the three months to March 31 were 46.5 million tons, up from 42.3 million tons in the same period a year ago, on the delivery and ramp up of the Eliwana project and execution of integrated operations, which was in line with consensus of 46 million tons.

Fortescue increased its guidance for shipments in fiscal 2022 to between 185 to 188 million tons as nine month exports were at a record. The miner also raised its forecast for C1 costs to $15.75 to $16 per wet metric ton.

“Against the backdrop of a record performance in our iron ore business and our focus on decarbonization and green energy, Fortescue is well placed to finish the financial year strongly,” said chief executive officer Elizabeth Gaines.

This followed updates from BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) both reporting a fall in iron ore shipments compared with the previous quarter on issues due to labour shortages, delaying projects. 

Shares in Fortescue Metals (ASX:FMG) soared 8.1 per cent at $21.73.

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