Australia's Fortescue trims annual iron ore shipments guidance after cyclone
Australian iron ore Miner Fortescue Metals reported flat third-quarter iron ore shipments on Thursday, as it trimmed its annual shipments forecast after cyclone Veronica.
Fortescue Metals trimmed its annual shipments forecast because of disruptions caused by a tropical cyclone.
It cut its fiscal 2019 shipments estimate to 165 million- 170 million tonnes, down from 165 million -173 million tonnes.
Fortescue Share price
Shares of Fortescue Metals have risen as much as 1.8% on Thursday to A$7.560 after dropping over 8% in the previous session
The top miner of the steelmaking commodity shipped 38.3 million tonnes in the quarter to March 31, compared with 38.7 million tonnes in the same period last year.
Chief Executive Officer Elizabeth Gaines said: ‘Closure of the Port Hedland port, combined with localised flooding in the area caused by Tropical Cyclone Veronica in late March, resulted in the loss of five days of shipments equating to 2.5 million tonnes,’
Cyclone impact
Tropical cyclone Veronica impacted the surge in iron ore prices, propelling Fortescue’s stock upto 80% higher in 2019.
Fortescue has attempted to hike up demand by moving to produce higher grade iron ore, after its lower grade products fell out of popularity with Chinese buyers.
The company recently started shipping mid-grade iron ore to pump up its margins, and reiterated that it expected to deliver 8-10 million tonnes of the new product in fiscal 2019.
Fortescue said it would spend about $2.6 billion with a Taiwanese partner to develop a "premium product" iron ore project in Western Australia.
'The Iron Bridge product will increase our average grade, providing Fortescue with the ability to deliver the majority of our products at greater than 60 percent iron grade,' Gaines said.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
