FORTESCUE SWINGS TO $1 BILLION NET CASH DURING QUARTER Industry Bulletin: Fortescue Swings To $1 Billion Net Cash During Quarter
Oct 30, 2020 09:10AM
Fortesque recently provided 1$M Strategic Investment to assist Candente in advancing Canariaco Norte to production.
Australian iron ore miner Fortescue (ASX: FMG) said its first-quarter iron ore shipments of 44.3 million tonnes were 5% higher compared to the same quarter a year ago.
The company released its September 2020 quarterly production report today.
Ongoing demand for Fortescue's products delivered average revenue of US$106/dry metric tonne.
Free cash flow generation in the quarter contributed to net cash of US$1.0 billion as of 30 September 2020, compared to net debt of US$0.3 billion as of 30 June 2020.
Fortescue CEO Elizabeth Gaines said demand was up.
"Robust demand from our customers contributed to an increase in revenue realization, 31% higher than the June Quarter and above the 27% increase in the average Platts 62% CFR Index. We have successfully grown and diversified our distribution channels, with portside sales in China by FMG Trading Shanghai now exceeding 10mt since sales commenced in June 2019," said Gaines.
The miner said its $1.37 billion Eliwana Mine and Rail project is on track. The first ore on train is scheduled for December 2020.
The company is also making a big push into renewables and electrification.
Its Chichester Solar Gas Hybrid project "...will provide a low emission energy solution, incorporating large-scale solar to displace around 100 million liters annually of diesel used in the existing Christmas Creek and Cloudbreak power stations. Construction is advancing, and by the end of Q1 FY21 approximately 80,000 solar panels, 125 transmission towers and 45 kilometers of transmission line have been installed."
The company also said it is also building a $700 million Pilbara Energy Connect project, including transmission infrastructure, hybrid solar gas generation, and large-scale battery storage.
"The project will integrate Fortescue's stationary energy facilities in the Pilbara into an efficient network and will lower emissions and the cost of electricity to existing and future sites. Bulk earthworks are well advanced and 100 transmission poles have been erected in preparation for transmission line installation."