The Fortescue Metals Group Limited (ASX: FMG) share price is racing higher on Thursday after the company released its June quarterly and full year FY21 update.
Shares in the iron ore major jumped 2.98% above yesterday's closing price to a high of $26.58 in early morning trade. This topped its 8 January record high of $26.40.
The price has since eased back a little to be up 1.28% to $26.14 at the time of writing.
A record open for the Fortescue share price
It's head above the clouds for the Fortescue share price after the company delivered record results across the board.
Fortescue revealed record iron ore shipments of 49.3 million tonnes for the quarter. This is a 4% increase on the prior corresponding period (pcp).
Shipments for the full year FY21 came in at 182.2 million tonnes, or 2% higher compared to a year ago.
Pleasingly, FY21 shipments have topped prior guidance of 182 million tonnes.
Sky high iron ore prices have not only propped up the Fortescue share price in the past 12 months but also translated to record average revenue.
According to the announcement, the company achieved US$168/dry metric tonne (dmt) for the quarter and US$135/dmt for the full year FY21.
From a cost perspective, C1 cost for the fourth quarter came in at US$15.23/wet metric tonne and US$13.93/wmt for FY21, in line with guidance.
The strong results produced a cash-on-hand position of US$6.9 billion and net cash of US$2.7 billion at 30 June 2021, compared to a net debt of US$1.0 billion at 31 March 2021.
Iron Bridge project update
Brokers have previously flagged the blowout costs from the Iron Bridge project as a potential drag on the Fortescue share price.
The quarterly update cited no changes in costs (US$2.5 billion to US$2.7 billion) with first production scheduled for December 2020 and a ramp-up period of 12 to 18 months.
FY22 guidance
Looking ahead, Fortescue is forecasting iron ore shipments of 180 to 185 million tonnes of iron ore at a C1 cost between US$15.00 to US$15.50/wmt.
FY22 capital expenditure is expected to land between US$2.8 billion to US$3.2 billion. This is inclusive of hub development, operational development, exploration and major projects (Iron Bridge).
Keep an eye on the Fortescue share price
While the quarterly update didn't specify Fortescue's financials, record iron ore shipments, record average revenue and costs in line with guidance all highlight what a strong year it's been for the iron ore miner.
According to Fortescue's half year results, the company's dividend policy is to pay out 50% to 80% of full year net profit after tax, targeting the top end of the range.
Investors should keep an eye on the Fortescue share price when the miner reports its full year results on 30 August.
