By Rhiannon Hoyle
Fortescue Metals Group Ltd. raised its annual iron ore export forecast after a 10% year-on-year increase in shipments in the third quarter.
The Australian miner also raised its cost forecast, citing growing inflationary pressures, and raised its project capital estimate for the Iron Bridge Magnetite project.
Fortescue said Thursday it now expects to ship between 185 million and 188 million metric tons of iron ore in the year to June. It had previously forecast shipments of 180 to 185 million tonnes.
“This strong performance is underpinned by the successful delivery and ramp-up of the Eliwana project, as well as the execution of our integrated operations and marketing strategy,” said Managing Director Elizabeth Gaines.
Still, Fortescue said high volumes and continued cost management were offset by rising inflation.
Fortescue said it now expects C1 costs in the range of $15.75 to $16.00 per wet ton this fiscal year, up from an earlier estimate of $15.00 to 15, $50.
The company said it revised Iron Bridge’s capital estimate to $3.6 billion-$3.8 billion from $3.3 billion-$3.5 billion. It also refined its estimate of capital spending for fiscal 2022 – excluding spending by its clean energy company, FFI – to $3.0 billion – $3.2 billion, from $3.0 billion. – $3.4 billion.
Write to Rhiannon Hoyle at [email protected]
(END) Dow Jones Newswire
April 27, 2022 7:35 p.m. ET (23:35 GMT)
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