Australian miner Fortescue Metals Group (FMG) says although iron ore shipments declined during the first fiscal quarter through September (FQ1), cash costs also saw a reduction.

Some 46 million tonnes of iron ore was processed in FQ1, up by 8% month-on-month and 2% year-on-year. Iron ore shipments were down by -5% on-quarter to 44.3mt, but this was still a growth of 5% y-o-y, Kallanish notes.

C1 costs in the period averaged $12.74/wet metric tonne (wmt), -2% lower than the prior period. The average revenue per tonne was 31% higher than the last quarter at $105.77/dry metric tonne.

In terms of guidance for the whole of the fiscal year through June 2021, FMG expects iron ore shipments to reach 175-180mt and C1 costs to meet $13-13.5/wmt (based on an assumed exchange rate of AUD:USD 0.7). Its Iron Bridge Magnetite project is progressing on schedule and budget, with the first shipment of concentrate planned in the first half of calendar-year 2022, the miner says.