Fortescue lifts Q4 production, shipments

Iron ore miner reiterates fiscal 2014 production, shipments guidance on strong fourth-quarter performance of both.

Fortescue Metals Group Ltd has reiterated its fiscal 2014 guidance after posting sharp lifts in both its shipement and production of iron ore in the June quarter.

In the three months to June 30, Fortescue's total iron shipments came in at 25 million tonnes, a marked 40% lift on the 17.8 million tonnes shipped in the previous corresponding quarter.

Fortescue mined 34.3 metric tonnes of iron ore in the quarter, a 79% lift on the 19.2% mined in the previous corresponding period.

For the full year, Fortescue said it shipped 80.9 million tonnes, a 40.1% lift on the previous year and in line with the group's own amended guidance.

In June, Fortescue revised down its FY13 shipment guidance to between 80 million tonnes and 82 million tonnes, from the previous production and shipment guidance of between 82 million tonnes and 84 million tonnes.

The group maintained its FY14 production and shipping guidance of between 127 million tonnes and 133 million tonnes.

Fortescue said it received an average sale price of $US113 a tonne during the June quarter, thanks to continuing demand from China (see Annette Beacher's If China is slowing, why won't iron price fall?).

It said steel production in China remained around record levels, with 64.7 million tonnes produced there in June.

"These high levels of steel production, improving steel prices and the current low level of iron ore inventory in the system have resulted in recent iron ore re-stocking," the company said.

The company said it did not pay any Mineral Resources Rent Tax during the financial year

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free