Fortescue Metals Group has reported a first-half earnings increase of 66 per cent, after strong demand for iron ore from China.
Andrew Forrest's mining giant on Thursday reported a net profit after tax of $US4.1 billion, after sales rose by 44 per cent to $US9.3 billion.
Shareholders will receive a fully franked interim dividend of $1.47 per share, which is 93 per cent higher than the previous fully franked interim payout.
The company said its earnings and shipments were a record for any half year in its history.
Fortescue shipped 90.7 million tonnes (mt) of iron ore, up two per cent on the previous first half.
The company raised its forecast for full-year shipments to 178 to 182 mt.
Yet Fortescue also raised its forecast for full-year capital expenditure. This was narrowed to the upper part of the previous range, and is $US3.0 billion to $US3.4 billion, based on the assumed exchange rate.
The troubled Iron Bridge Magnetite Project, aimed at developing a mine south of Port Hedland in Western Australia, will also require more funding than previously anticipated.
A review of the project has increased the capital estimate for the project to up to $US3 billion.
First production was expected in the second half of the 2022 calendar year.
The project is a joint venture between Fortescue and Formosa Steel.
On Tuesday, Fortescue revealed three executives had resigned following project management failings in Iron Bridge.
Shares were higher by 1.19 per cent to $24.70 at 1141 AEDT.
