On October 28, FMG released the production and sales report for the first quarter of the 2021-2022 fiscal year (July 1, 2021 to September 30, 2021). In the first quarter of fiscal year 2021-2022, FMG iron ore mining volume reached 60.8 million tons, a year-on-year increase of 4%, and a month-on-month decrease of 6%; iron ore shipped volume reached 45.6 million tons, a year-on-year increase of 3%, and a month-on-month decrease of 8% .
In the first quarter of the 2021-2022 fiscal year, FMG’s cash cost was US$15.25/ton, which was basically the same as the previous quarter, but increased by 20% compared to the same period in the 2020-2021 fiscal year. FMG explained in the report that it is mainly due to the increase in the exchange rate of the Australian dollar against the US dollar, including the increase in diesel and labor costs, and the increase in costs related to the mining plan. For the 2021-2022 fiscal year, FMG’s iron ore shipment guidance target is 180 million to 185 million tons, and the cash cost target is US$15.0/wet ton to US$15.5/wet ton.
In addition, FMG updated the progress of the Iron Bridge project in the report. The Iron Bridge project is expected to deliver 22 million tons of high-grade low-impurity concentrates with 67% iron content each year, and is scheduled to start production in December 2022. The project is proceeding as planned, and the estimated investment is between US$3.3 billion and US$3.5 billion.