Australia’s Fortescue FMG.AX reported a larger-than-expected decline in third-quarter iron ore shipments, attributed to a derailment of ore cars and weather disruptions, resulting in a slight reduction in its annual shipment outlook.
The world’s fourth-largest iron ore miner disclosed that it shipped 43.3 million metric tons of the steel-making commodity in the three months ending March 31, down from 46.3 million tonnes in the previous year. This figure fell short of the Visible Alpha estimate of 45.4 million tons, as reported by Morgan Stanley.
Analysts at Citi noted that March quarter hematite shipments were 12% below their expectations, primarily due to the derailment and weather effects.
Fortescue indicated that it anticipates its fiscal year 2024 shipments to align with the lower end of its 192-197 million ton forecast, citing the impact of the derailment and weather disruptions during the quarter. This projection includes 2 million tons from its magnetite Iron Bridge operations, compared to a previous forecast of 2-4 million tons, which were affected by water availability at its processing plant.
Additionally, Fortescue revised its capital spending guidance for its metals business to a range of $2.5 billion to $2.7 billion, down from the previous range of $2.8 billion to $3.2 billion, partly influenced by currency fluctuations.