Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Fortescue's iron ore shipments drop

Simone Ziaziaris  |  30 Jan 2018Text size  Decrease  Increase  |  
Email to Friend

SYDNEY - [AAP] Fortescue Metals (ASX: FMG) shipped less iron ore in the December quarter, while also continuing to lower its production costs.

The Pilbara miner shipped 40.5 million tonnes of iron ore in the three months to December 31, down from 44 million tonnes in the September quarter and the 42.2 million tonnes shipped in the December quarter a year earlier.

Cash production costs dropped to a record $US12.08 per wet metric tonne, down four per cent from a year ago and one per cent from the September quarter.

Chief executive Nev Power, who will step down from his role in February, said productivity and efficiency initiatives had continued to reduce the company's cost base, offsetting higher strip ratios, exchange rates and fuel prices.

"Our focus on improving safety continues, together with our clear market and product strategy to deliver value to our customers, generating strong cash margins and shareholder returns," Mr Power said.

Fortescue is maintaining its shipping guidance of 170 metric tonnes per year, and said it is also is on track to meet its full-year price realisation guidance of between 70 and 75 per cent of the benchmark Platts 62 CFR index.

That is despite its average realised price for contracts entered in the December quarter dropping to 66 per cent of the benchmark index.

Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass

The company's gross debt stood at $US4.2 billion at December 31, down from $US4.4 billion at September 30.

Fortescue shares were up 6.5 cents, or 1.3 per cent, at $5.155 at 1315 AEDT.

 

AAP logo image

© [2018] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

is an AAP journalist.

AAP logo

© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend