Iron ore miner Fortescue Metals Group has reported flat third-quarter iron ore shipments and cut its annual shipments forecast because of disruptions caused by a tropical cyclone.
The company cut its fiscal 2019 shipments estimate to 165 million-170 million tonnes of iron ore, down from 165 million-173 million tonnes.
Fortescue shipped 38.3 million tonnes in the quarter to March 31, compared with 38.7 million tonnes in the same period last year. That was higher than an average of estimates of 36.5 million tonnes by Goldman Sachs and UBS.
The closure of the Port Headland Port combined with localised flooding in the area caused by Tropical Cyclone Veronica in late March resulted in a loss of five days of shipments equating to 2.5 million tonnes.
The impact of the cyclone, coupled with a dam disaster in Brazil that restricted Vale SA's production, has led to a surge in iron ore prices this year, propelling Fortescue's stock about 80 per cent higher in 2019.
Fortescue has been attempting to shore up demand by moving to produce higher grade iron ore, given that its lower grade products had fallen out of favour with Chinese buyers facing environmental restrictions.
The company recently started shipping mid-grade iron ore to pump up its margins, and reiterated that it expected to deliver 8-10 million tonnes of the new product in fiscal 2019.
