• Fortescue's Total Recordable Injury Frequency Rate (TRIFR) for Metals improved by 17% to 1.5 as of March 31, 2024, compared to December 31, 2023.
• Iron ore shipments in Q3 FY24 were 43.3 million tonnes (Mt), 6% lower than Q3 FY23.
• Pilbara Hematite C1 cost was US$18.93/wet metric tonne (wmt), 7% higher than Q2 FY24 due to lower sales volumes.
• Pilbara Hematite average revenue was US$104/dry metric tonne (dmt), realizing 85% of the average Platts 62% CFR Index.
• Iron Bridge Concentrate revenue was US$145/dmt, 107% of the average Platts 65% CFR Index.
• The company's cash balance was US$4.1 billion, and net debt was US$1.2 billion as of March 31, 2024, after paying an interim dividend of US$2.2 billion and US$589 million in capital expenditure.
• Fortescue successfully used ammonia as a marine fuel for the first time.
• A joint venture with OCP Group was announced in April 2024 to supply green hydrogen, ammonia, and fertilizers.
• The Gladstone Electrolyser Facility in Queensland, Australia, with a manufacturing capacity of over 2GW per annum, was officially opened in April 2024.
• FY24 total shipment guidance remains unchanged at 192 197Mt, but shipments are now expected to be at the lower end of the range.
• FY24 Pilbara Hematite C1 cost guidance is unchanged, while Metals capital expenditure guidance is amended to US$2.5 US$2.7 billion.
• FY24 Fortescue Energy net operating expenditure guidance is reduced by US$100 million to US$700 million.

Score: 6

Explanation: The report presents a mixed picture with positive developments in safety and green energy initiatives, but negative impacts on shipments and costs. The unchanged guidance provides some stability, but the lower end of the shipment range is a concern.

• Fortescue's Total Recordable Injury Frequency Rate (TRIFR) for Metals improved by 17% to 1.5.
• Iron ore shipments reached 43.3 million tonnes (Mt) in Q3 FY24.
• Pilbara Hematite C1 cost was US$18.93/wet metric tonne (wmt).
• Pilbara Hematite average revenue was US$104/dry metric tonne (dmt).
• Iron Bridge Concentrate revenue was US$145.04/dmt, 107% of the average Platts 65% CFR Index.
• The company's cash balance was US$4.1 billion, and net debt was US$1.2 billion.
• Fortescue successfully used ammonia as a marine fuel for the first time.
• A joint venture with OCP Group was announced to supply green hydrogen, ammonia, and fertilizers.
• The Gladstone Electrolyser Facility was officially opened.
• FY24 total shipment guidance remains unchanged at 192 197Mt, but shipments are now expected to be at the lower end of the range.
• Metals capital expenditure guidance is amended to US$2.5 US$2.7 billion.
• FY24 Fortescue Energy net operating expenditure guidance is reduced by US$100 million to US$700 million.
• Record monthly shipments of 18.7Mt were achieved in March 2024.

• The Total Recordable Injury Frequency Rate (TRIFR) for Metals improved, indicating enhanced safety performance.
• Fortescue achieved record monthly shipments of 18.7Mt in March 2024.
• Iron Bridge Concentrate revenue exceeded the Platts 65% CFR Index.
• Fortescue successfully used ammonia as a marine fuel.
• The joint venture with OCP Group positions Fortescue in the green energy and fertilizer market.
• The opening of the Gladstone Electrolyser Facility enhances Fortescue's green energy production capabilities.
• Metals capital expenditure guidance was reduced, indicating improved capital efficiency.
• Fortescue Energy net operating expenditure guidance was reduced, reflecting cost-saving initiatives.

• Iron ore shipments were 6% lower than Q3 FY23 due to the ore car derailment and weather disruptions.
• Pilbara Hematite C1 cost increased by 7% compared to the previous quarter due to lower sales volumes.
• Pilbara Hematite average revenue realized only 85% of the average Platts 62% CFR Index due to timing of sales.

• The ore car derailment and weather disruptions impacted iron ore shipments.
• Lower sales volumes increased Pilbara Hematite C1 costs.
• The raw water pipeline performance impacts Iron Bridge shipments.
• Shipments are expected to be at the lower end of the FY24 guidance range due to the derailment and weather impacts.

FY24 total shipments are expected to be in the lower end of the 192 197Mt guidance range. Pilbara Hematite C1 cost guidance remains unchanged at US$18.00 US$19.00/wmt. Metals capital expenditure is expected to be US$2.5 US$2.7 billion. Fortescue Energy net operating expenditure is projected to be approximately US$700 million.

• The Fortescue team pulled together to successfully implement our recovery plan, and we had a record month for shipments in March of 18.7Mt contributing to 43.3Mt for the quarter.
• We also set a new record for railed tonnes, all while continuing to improve our safety performance.
• Our decarbonisation plan is progressing well, with our first operational electric excavator moving battery power system.
• In true Fortescue style, we are rapidly advancing these opportunities while retaining an unwavering focus on costs and capital discipline.

Fortescue's focus on green energy initiatives, such as the ammonia-powered vessel and the joint venture with OCP Group, aligns with the global trend towards decarbonization and sustainable practices in the mining and fertilizer industries. The company's efforts to reduce costs and improve capital efficiency are also crucial in maintaining competitiveness in the iron ore market.

• Fortescue's Pilbara Hematite C1 cost of US$18.93/wmt is within the typical range for major iron ore producers, but the 7% increase compared to the previous quarter is a concern.
• Companies like Rio Tinto and BHP typically aim for lower C1 costs, often below US$15/wmt, indicating room for improvement for Fortescue.
• The revenue realization of 85% of the Platts 62% CFR Index is lower than some competitors, who often achieve 90% or higher through strategic product mix and marketing efforts.
• The Iron Bridge Concentrate revenue exceeding the Platts 65% CFR Index demonstrates the value of Fortescue's higher-grade product.

• Shareholders may be concerned about the lower iron ore shipments and increased C1 costs, potentially impacting profitability.
• Employees benefit from the improved safety performance, as reflected in the lower TRIFR.
• Customers can expect continued supply of iron ore, although potentially at the lower end of the guidance range.
• Suppliers may see adjustments in procurement based on the revised capital expenditure guidance.
• Creditors should be reassured by the company's cash balance and manageable net debt.

• Continue implementing the operational recovery plan to improve shipment volumes.
• Focus on cost control measures to reduce Pilbara Hematite C1 costs.
• Advance the joint venture with OCP Group and the development of green energy projects.
• Address the performance issues with the Canning Basin Raw Water Pipeline.

• December 30, 2023: Ore car derailment occurred, impacting iron ore shipments.
• December 31, 2023: TRIFR for Metals was 1.8.
• March 31, 2024: End of Q3 FY24, TRIFR for Metals was 1.5, cash balance was US$4.1 billion, and net debt was US$1.2 billion.
• April 2024: Joint venture with OCP Group announced and Gladstone Electrolyser Facility officially opened.