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March 2021 Quarterly Production Report FMG Fortescue 29 April 2021 Continued strong operating performance contributes to record year - to- date shipments Quarterly highlights • • • • • Total Recordable Injury Frequency Rate ( TRIFR ) of 2.2 at 31 March 2021 , compared to 2.1 at 31 December 2020 and 2.4 at 30 June 2020 Iron ore shipments of 42.3 million tonnes ( mt ) , in line with record third quarter shipments last year . Year - to - date shipments of 132.9mt are 2 per cent higher than the comparable period in FY20 Average revenue of US $ 143 / dry metric tonne ( dmt ) increased 17 per cent compared to the previous quarter with revenue realisation at 86 per cent of the average Platts 62 % CFR Index C1 cost of US $ 14.90 / wet metric tonne ( wmt ) increased 16 per cent compared to Q2 due to seasonally lower volumes and the strength of the Australian dollar , with year - to - date C1 cost of US $ 13.45 / wmt Net debt of US $ 1.0 billion at 31 March 2021 after payment of the FY21 interim dividend of US $ 3.5 billion and capital expenditure of US $ 909 million in the quarter Capital structure further optimised with the issue of US $ 1.5 billion Senior Unsecured Notes to refinance debt , extend the debt maturity profile and lower the cost of capital Announced a revised target to achieve carbon neutrality by 2030 , ten years earlier than the previous target • Guidance for FY21 shipments and C1 cost remains unchanged , with capital expenditure guidance revised to a range of US $ 3.5 to US $ 3.7 billion . Fortescue Chief Executive Officer , Elizabeth Gaines , said “ Fortescue's excellent operating performance continues to drive strong results , with shipments of 42.3mt in the third quarter contributing to a record shipping performance for the first nine months of the financial year . " The commissioning of the Eliwana mine has contributed to an increase in both ore mined and processed during the quarter , despite the impact of significant rainfall across our operations in the Pilbara . " Our focus on safety and a commitment to zero harm continues , with TRIFR improving by eight per cent from 2.4 at the start of the financial year to 2.2 at 31 March 2021 . " Significantly , Fortescue announced during the quarter a target to achieve carbon neutrality by 2030 , positioning us as a global leader in the battle against climate change . We have set out clear priorities for our pathway to decarbonisation , including the establishment of a green mining fleet through the development and assessment of hydrogen and battery electric solutions . 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