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December 2020 Quarterly Production Report FMG Fortescue 28 January 2021 Record half year shipments and first ore celebrated at the Eliwana mine Quarterly highlights • • • • • • • The Total Recordable Injury Frequency Rate ( TRIFR ) was maintained at 2.1 at 31 December 2020 , 13 per cent lower than 30 June 2020 Iron ore shipments of 46.4 million tonnes ( mt ) in the quarter contributed to record shipments for a half year of 90.7mt C1 costs of US $ 12.81 / wet metric tonne ( wmt ) were in line with the previous quarter Average revenue of US $ 122 / dry metric tonne ( dmt ) realised 91 per cent of the average Platts 62 % CFR Index for the quarter Strong cashflow generation resulted in net debt of US $ 0.1 billion at 31 December 2020 , after payment of the FY20 final dividend and the FY20 final tax instalment during the quarter First ore was achieved at the Eliwana mine in December 2020 , a significant milestone for development of Fortescue's iron ore operations in the Western Hub region of the Pilbara Fortescue's commitment to sustainability was recognised with its inclusion in the 2020 Dow Jones Sustainability Indices and an upgraded status in the latest MSCI ESG ratings Guidance for FY21 shipments , C1 cost and capital expenditure remains unchanged at the assumed AUD : USD exchange rate of 0.70 . Fortescue Chief Executive Officer , Elizabeth Gaines , said " Record shipments of 90.7mt surpassed any half year since Fortescue's inception , and we are very well placed to meet the sustained strength in demand from our customers . " Fortescue is continuing to deliver strong results for FY21 across all key measures of safety , production and cost ; and during the quarter the team achieved a key milestone of first ore at our Eliwana mine . Safety performance was steady , with the TRIFR remaining at 2.1 on a 12 month rolling basis supported by a strong focus on hazard reduction . " In December 2020 we celebrated the significant milestones of the first ore processed and commissioning train at the Eliwana mine . Delivery of this strategically important project in line with schedule at an industry - low capital intensity was a remarkable effort by the Fortescue team considering the impact of COVID - 19 restrictions . " Across the business , our entire team is achieving excellent operational performance while continuing to manage challenges associated with COVID - 19 , including border restrictions . These measures , to protect the health and safety of all of our employees and contractors , enables Fortescue to maintain its strong contribution to the Western Australian and national economies , " Ms Gaines said . Fortescue Metals Group Ltd ABN 57 002 594 872 PO Box 6915 , East Perth , Western Australia 6004 Level 2 , 87 Adelaide Terrace , East Perth , Western Australia 6004 P +61 8 6218 8888 E fmgl@fmgl.com.au W www.fmgl.com.au Page 1 of 5