Fortescue reports increased iron ore shipments and trims cash costs

Fortescue reports increased iron ore shipments and trims cash costs

Fortescue Metals (ASX:FMG) made a positive statement in its Q4 fiscal report, seeing iron ore shipments rise which allowed the Australian miner to cut its cash costs by 15%.

The world’s fourth biggest producer of iron ore shipped a higher-than-expected 44.7 million tonnes during the quarter up to June 30, up 3% from its shipments in the same financial period of 2016.

These results meant that Fortescue hit the top end of its FY guidance, shipping 170.3 million tonnes of iron ore over the course of the year.

As a result, fiscal guidance for FY2018 iron ore shipments has been set at 170 million tonnes by the Pilbara-based company, which is also targeting a further reduction in cash costs to US$11-12 per wet metric tonne.

Fortescue’s chief executive officer Nev Power said “Fortescue’s June quarter results demonstrate the continued excellent performance being achieved by our teams in safety, production and operating cost improvement.

“Leading into FY18, we are well positioned to continue our focus on productivity and efficiency initiatives to improve costs, to invest in the long-term sustainability of our core iron ore business and maintain production levels.”

@RGNonline