(Reuters) - Australian miner Fortescue reported higher iron ore shipments in the third quarter on Thursday, in line with analysts' expectations, as production recovered after a train derailment in the year-ago quarter.
The iron ore producer, chaired by its billionaire founder Andrew Forrest, reported quarterly iron ore shipments of 46.1 million metric tons (mt), up from 43.3 million mt a year earlier. This was broadly in line with Visible Alpha's consensus estimate of 46.8 million mt.
The increase in iron ore shipments is possible despite Fortescue having to contend with significant weather-related disruptions, including a five-day closure of the Port Hedland port and operational restrictions caused by tropical cyclone Zelia, which resulted in a 7% quarter-on-quarter decline.
Shares in the world's fourth-largest iron ore producer rose as much as 2.1% to a four-week high of 15.8 Australian dollars, outperforming the 0.3% rise in the mining sector as a whole. Fortescue stated that the Iron Bridge production schedule to reach full production capacity of 22 million tons per annum remains under review. The assessment of key processing facilities is expected to be completed by June.
For its green energy division, Fortescue is currently reassessing the development timelines for its Arizona project in the US and its Queensland-based Gladstone PEM50 project. By June, there should be "more clarity" on the external factors affecting these projects.
The company maintained its forecast for iron ore deliveries in the 2025 financial year of 190 to 200 million tons, including 5 to 9 million tons for Iron Bridge (at 100%). The planned capital expenditure of USD 3.5 to 3.8 billion for 2025 also remains unchanged.
Fortescue delivered its first T 264 Power System to mining equipment manufacturer Liebherr during the quarter. The system is designed to convert diesel mining vehicles into zero-emission vehicles as part of the company's decarbonization efforts.
