The Fortescue Metals Group Limited (ASX: FMG) share price is climbing higher again on Wednesday.
In morning trade the iron ore producer’s shares climbed 1.5% to a new record high of $21.81.
Why is the Fortescue share price climbing higher?
Investors have been buying Fortescue’s shares this morning following the release of a positive announcement.
According to the release, the company has achieved a significant milestone in the development of its iron ore operations in the Pilbara. Today it is celebrating the first ore through the ore processing facility at the Eliwana mine and rail project in the Western Hub.
Fortescue’s Chief Executive Officer, Ms Elizabeth Gaines, believes Eliwana as important step forward for the company.
She commented: “Eliwana is the next important stage of development of Fortescue’s world-class, integrated operations. Exploration commenced in this area in 2006, and we have now delivered a new 30 million tonne per annum dry ore processing facility and infrastructure, along with 143 kilometres of rail which is in the final stages of construction.”
“Eliwana will see us maintain our low-cost status and provide us with greater flexibility across our product mix. Construction of the mine, village and infrastructure was completed safely over a 12-month period, in line with budget and schedule,” Ms Gaines added.
Diverse workforce.
The company rightfully believes a diverse workforce is integral to the company’s success.
Pleasingly, Fortescue continues to provide training and employment opportunities for Aboriginal people, who represent 14% of the Eliwana operations workforce.
In addition to this, the company notes that 23% of its Eliwana operations team are women. This is contributing to its commitment to increase gender diversity across all operations.
What’s the latest on the iron ore price?
The good news for Fortescue and its shareholders is that the iron ore price is still trading at sky high levels.
According to CommSec, the spot iron ore price was fetching US$149.95 a tonne overnight, a further increase of 1.6%.
This compares incredibly favourably to Fortescue’s C1 costs guidance of US$13.00 to US$13.50 per wet metric tonne in FY 2021.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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