PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported record shipments during the fourth quarter ended June, with 47.3-million tonnes shipped in the three months under review, and 178.2-million tonnes in the full year to June.

“The entire Fortescue team has delivered strong results for the June quarter, achieving our lowest total recordable injury frequency rate safety performance of 2.4, as well as record quarterly shipments,” said CEO Elizabeth Gaines.

“For the full 2020 financial year, we also delivered a record annual shipment of 178.2-million tonnes, while maintaining our industry leading position of $12.94/t.”

C1 costs for the quarter under review reached $13.02/t, which was 2% higher than the previous corresponding period owing to Covid-19 related costs, with the full-year C1 costs also including a 22c/t Covid-19 related cost.

Average revenue of $81/t was achieved in the fourth quarter, bringing full year revenue to $79/t. Revenue in the fourth quarter was up by 21% on the previous corresponding period, which Gaines said reflected the successful execution of Fortescue’s integrated operations and marketing strategy, improved product mix and demand for product.

During the quarter under review, Fortescue’s expenditure reached $700-million, and $2-billion in the full year, inclusive of sustaining capital and exploration, as well as spend on major projects, which include the Eliwana mine and rail project, and the Iron Bridge magnetite project.

Fortescue on Thursday said that the forecasted capital investment for the Eliwana mine and rail project has now been revised to between $1.325-billion and $1.375-billion, up from the previous estimate of $1.275-billion, owing to costs associated with mitigating access delays and Covid-19 impacts.

Acceleration measures have been implemented at Eliwana to achieve first ore on train in December this year, underpinning the delivery of Fortescue’s product strategy.

Meanwhile, first concentrate production from the $2.6-billion Iron Bridge magnetite project is still planned for the first half of 2022.

For the 2021 financial year, Fortescue is targeting shipments of between 175-million and 180-million tonnes, at a C1 cost of between $13/t and $13.5/t. Capital expenditure in 2021 is expected to reach between $3-billion and $3.5-billion.