Fortescue positive on iron-ore future

Fortescue iron-ore COO Dino Otrano told delegates at the Global Iron Ore and Steel Forecast conference, in Perth, that global market conditions remained supportive for iron-ore, with an expectation of increased activity in China in the coming months and constrained global iron-ore supply growth subject to Covid-19 constraints as well as disruption in the supply chain coming as a result of the recent conflict in Ukraine.

The company in February reported record half-year shipments of 93.1-million tonnes, generating revenues of $8.1-bilion.

“We've had a strong start to the second-half and we're well positioned to deliver on our guidance for the full year iron-ore shipments in the range of 180-million to 185-million tonnes, capex excluding Fortescue Future Industries in the range of $3-billion to $3.4 billion, and C1 costs guidance of A$15/t to A$15.50/t,” said Otrano.

He noted that the company was closely monitoring its costs given the recent significant increase in fuel prices and that Fortescue remained focused on maintaining its industry-leading cost position.