Fortescue Metals Group Reports Record Iron Ore Shipments

Industry News

& Articles

Fortescue Metals Reports Record Iron Ore Shipments

Facebooktwitterlinkedin

Fortescue Metals Group (ASX: FMG), as of the 30th of July released their June 2020 quarterly report which exceeded guidance expectations and increases in fundamental data points from 2019. These data points include safety, shipments, revenue along with other key performance indicators.

A major macroeconomic factor to consider is the COVID-19 pandemic and how it affects FMG operations. Site operations reverted from to fly-in, fly-out (FIFO) work after participation in State government detections which have thus far detected no cases across all of FMG’s operational sites.

Compared to Q4FY19, the amount of ore mined has faltered yet only slightly with 57.2 wet metric tonnes (WMT) were extracted in contrast to the 57.6 Q4FY19 period. (Wet metric tonnes refers to an 8-9 per cent moisture content in the product.)

The amount of overburden removal (topsoil removal) jumped up from 79 WMT to 84.7 WMT in Q4FY20. Quantities of ore processed dropped from 48.5 to 42.7 WMT, yet the amount of ore shipped had a great result of 47.3 WMT compared to Q4FY19 46.6 WMT.

Looking at the marketing results, Chinese demand for FMG products remains strong with average revenue for Q4FY20 coming to US80.64/ DMT (Dry Metric Tonnes). This figure viewed in the context of the FY20 average of US78.62 DMT shows the underlying performance in this quarter. Revenue per tonne has increased by 21 per cent from FY19, which is 16 per cent higher than the average Platts 62 per cent CFR Index (a benchmark assessment of spot prices for iron ore) for the same time.

At the same time, crude steel production has remained stable, rising to 268.9 megatons in this quarter, with output until June coming to 499 megatonnes. Currently, the market conditions are very favourable towards iron ore with recovering economies.

This favourability can is evident in the volumes of WMT that was shipped year to date compared to FY19. So far, West Pilbara Fines have shipped out 17.9 WMT compared to FY19’s 9 WMT. Kings Fines s sitting at 15.1 WMT compared to 14.2 last year. Fortescue Blend scraped just above last year 72.4 WMT with 72.7 WMT this year.

Fortescue Lump came through with 12.9 WMT, beating the 8.6 WMT in the previous year, yet Super Special Fines and Manganese Iron Ore are down from 61.7 to 59.4 WMT and 1.8 to 0.2 WMT respectively.  Overall, there have been 47.3 million tonnes shipped over the past three months.

A couple of hours after the announcement, FMG has rallied 3 per cent, seeing it overtake Wesfarmers as the largest listed Western Australian company. Market Cap reached 53.4 billion, which surpassed Wesfarmers 53.3 billion, which is even more impressive with the context of being valued at 51.8 billion to Wesfarmers 52.8 billion on Monday. Fortescue Metals Group will be reporting its full-year results on 24 August 2020.

Caroline Wong

Caroline Wong is a Research Analyst at KOSEC – Kodari Securities. She writes on markets and focuses on ASX Top 300 companies. Email Caroline at c.wong@kosec.com.au.

Comment on this company

Latest Stories

Macmahon Wins Coburn Mineral Sands Project

Macmahon Holdings Limited (ASX: MAH) has revealed on the 3rd of August, that it has.. …

Magellan Announces Global Equity Fund Restructure

Magellan Financial Group has announced that they will restructure the retail product.. …

Infigen Updates Fourth Quarter FY20 Operations

Infigen Energy (ASX:IFN) releases its quarterly activity report for the three months ending 30 June 2020……

More for you

Origin Energy Posts Resilient Fourth Quarter Results

On the 31st of July 2020, Origin Energy (ASX: ORG) releases its quarterly report which details.. …

Clinuvel Pharmaceuticals releases quarterly activity report

Clinuvel Pharmaceuticals (ASX: CUV) has released strong results in a quarterly activity report……

CIMIC Group Reports HY20 Performance

Cimic Group Limited (ASX:CIM) releases its half-year performance for the six months to 30 June 2020, highlighting……

Macquarie Group Reports fall in profits of 8 per cent

Macquarie Group has reported an 8 per cent decline in profits in the FY20 financial year at $2.731 billion……

Nickel Mines Releases Quarterly Activities Report

Nickel Mines Limited (ASX:NIC) has released a quarterly operations statement for the quarter……

CIMIC Group Signs Agreement with Elliott Advisors

As of the 29th of July, CIMIC Group (ASX: CIM) is entering exclusive negotiations with.. …

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

Disclaimer
KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

Fees
As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

Privacy
You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.

CLAIM YOUR FREE E-BOOK &
7 DAY ACCESS TO LOTUS BLUE

STOCK MARKET SUCCESS

KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.

CLAIM YOUR FREE E-BOOK WHEN YOU LOGIN TO LOTUS BLUE INVESTMENT PORTAL

Latest TV Commercial