keywords :
Fortescue announced its December 2018 quarterly production results, reporting total shipments of 42.5 million tonnes and cash production costs of USS13.02 per wet metric tonne.
HIGHLIGHTS - DECEMBER 2018 QUARTER
1. TRIFR of 4.0
2. Shipments increased six per cent to 42.5mt bringing half year shipments to 82.7mt
3. Average realised price increased to US$48 per dry metric tonne (dmt)
4. C1 cost decreased to US$13.02/wmt
5. First cargo of West Pilbara Fines shipped on 16 December 2018
6. A$139.2 million (US$101 million) of Fortescue shares acquired under the buy-back program at an average price of AS3.997 per share
7. The Eliwana mine and rail development project is progressing on schedule
8. Partnership announced with CSIRO to develop and commercialise hydrogen technology
The results for the quarter demonstrate the continued ability of Fortescue's operations to generate strong cashflows through the successful execution of its product strategy, resulting in higher realised prices and sustained low cost performance.
Fortescue Chief Executive Officer, Elizabeth Gaines, said “The Fortescue team have delivered a strong December quarter with shipments of 42.5mt bringing the total for the first half of FY19 to 82.7mt. Our average realised price increased by seven per cent in the quarter to US$48/dmt which combined with lower C1 costs of US$13.02/wmt generated strong cashflows. During the quarter we delivered significant shareholder returns through payment of the FY18 final dividend of US$270 million and the acquisition of US$101 million of shares on market, while maintaining our quarter end cash balance at US$962 million. The first cargo of our 60.1 % iron grade West Pilbara Fines product was shipped to China on 16 December 2018 and we now expect to deliver between 8-10mt of this product in FY19. Initial customer feedback has been excellent and we look forward to supplying 40mpta of West Pilbara Fines from December 2020, once the Eliwana mine and rail development project has commenced operations. We are pleased with the execution of Fortescue's share buy-back program after acquiring 34.8 million shares at an average price of AS3.997 per share during the quarter. Maintaining our disciplined approach to capital management together with maximising shareholder returns remains our key focus."