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Fortescue lifts Q1 output

Fortescue lifts Q1 output

Photo by Bloombeg

15th October 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore miner Fortescue Metals increased its production by 7% quarter-on-quarter for the three months ended September 30, while C1 cash costs came in lower.

Some 45.1-million tonnes of ore was mined, at a C1 cash cost of $16.90/t, compared with the 42.1-million tonnes mined in the fourth quarter of 2014, at a C1 cost of $22.16/t. Ore shipments, including third-party product, remained fairly stagnant at 41.9-million tonnes.

CEO Nev Power said on Thursday that operational efficiencies and sustainable cost reductions, along with strong price realisation had continued to generate improved operating cash flows for Fortescue.

“The results demonstrate Fortescue’s ongoing commitment to consistent, sustained high performance across the entire business.

“Our team is delivering sustainable cost reductions through an unwavering focus on optimising every aspect of Fortescue’s operations. This has resulted in production costs being driven lower for the seventh consecutive quarter, down by 47% compared with the September 2014 quarter.”

For the full 2016, Fortescue was hoping to ship some 165-million tonnes of ore, and while C1 costs for the full year were currently estimated at $18/t, Fortescue was hoping to exit 2016 at a production cost of $15/t.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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