Fortescue (FMG) Q4 2024 TU earnings summary

Executive summary

• Achieved record iron ore shipments of 53.7Mt in Q4 FY24, up 10% year-over-year, contributing to 191.6Mt for FY24.

• Total Recordable Injury Frequency Rate improved 28% to 1.3 for FY24.

• Advanced decarbonisation with commissioning of a 100MW solar farm and first hydrogen-powered haul truck operation.

• Management restructure announced to simplify operations and deliver cost efficiencies.

• Appointed new Group CFO and COO.

Financial highlights

• Pilbara Hematite average revenue was US$92/dmt in Q4 FY24 (82% of Platts 62% CFR Index) and US$103/dmt for FY24.

• Iron Bridge Concentrate average revenue was US$127/dmt in Q4 FY24 (101% of Platts 65% CFR Index) and US$137/dmt for FY24.

• Cash balance at 30 June 2024 was US$4.9 billion; net debt was US$0.5 billion after US$2.9 billion FY24 capex.

• Q4 FY24 Pilbara Hematite C1 cost was US$18.53/wmt; FY24 average was US$18.24/wmt.

Outlook and guidance

• FY25 shipment guidance: 190–200Mt, including 5–9Mt from Iron Bridge.

• Pilbara Hematite C1 cost guidance: US$18.50–US$19.75/wmt.

• Metals capex guidance: US$3.2–US$3.8 billion; Energy capex: US$500 million; Energy net opex: US$700 million.

• Iron Bridge ramp-up to full capacity expected by September quarter 2025.