The Fortescue Metals Group Ltd (ASX: FMG) share price is edging lower on Thursday.
At the time of writing, the mining giant's shares are down 0.5% to $23.40.
This follows the release of the miner's quarterly activities update.
What happened during the quarter?
For the three months ended 30 June, Fortescue delivered iron ore shipments of 48.9 million tonnes (mt). This underpinned record iron ore shipments of 192mt for FY 2023, which was at the top end of the company's guidance range. This is the fourth year in a row of record shipments.
Fortescue received an average of US$96 per dry metric tonne (dmt) for the quarter, which represents 87% of the benchmark Platts 62% price. This was largely in line with its full-year average of US$95 per dmt in FY 2023.
The company's costs were well controlled during the quarter. Fortescue's C1 cost came in at US$17.57 per wet metric tonne (wmt), which resulted in FY 2023 C1 costs of US$17.54 per wmt. This was at the low end of its guidance range.
No earnings information was provided but management revealed that its net debt reduced to US$1 billion at the end of June from US$2.1 billion at the end of March.
Fortescue's CEO, Fiona Hick, was pleased with the quarter. She said:
The Fortescue team has delivered outstanding results for the June quarter, with iron ore shipments of 48.9 million tonnes, contributing to our highest ever annual shipments of 192 million tonnes, achieving the top end of shipments guidance.
Guidance
Fortescue looks likely to break new iron ore shipment records in FY 2024. Management is guiding shipments of 192mt to 197mt for the 12 months. This will include approximately 7mt from the newly opened Iron Bridge operation.
It expects to achieve this with slightly higher costs of US$18.00 to US$19.00 per wmt. This reflects an expected increase in labour rates, as well as mine plan-driven impacts.
Hick adds:
Building on another year of record performance, our guidance for FY24 is for total shipments in the range of 192 – 197 million tonnes. Our hematite operations are performing strongly and we are focused on delivering growth through the safe and efficient ramp up of Iron Bridge, unlocking the potential of Belinga and decarbonising our iron ore operations. We will continue to invest in green metals, green energy and green technologies, supported by our strong balance sheet and disciplined capital allocation.
