Fortescue reports another quarter of lower costs
PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has continued to drive down operating costs during the three months to March, while maintaining output.
The miner on Wednesday announced that C1 cash costs for the three months under review had declined by 6% on the previous quarter, from $15.80/t to $14.79/t.
Iron-ore production declined slightly from 44.8-million tonnes to 43.4-million tonnes, while tonnes of ore shipped remained steady at 42-million tonnes.
“The March quarter reinforces Fortescue’s consistent delivery of outstanding results across all areas of the business. C1 costs have been lowered further to $14.79/t, the ninth consecutive quarterly production increase, with productivity and efficiency gains offsetting increases in the Australian dollar and fuel prices,” said CEO Nev Power.
For the full year, the company maintained its C1 cost guidance of $15/t, after factoring an average exchange rate for the remainder of the year.
The miner added that shipments were currently running ahead of target, owing to the unseasonable mild weather experienced in the March quarter, adding that potential upside for the full-year guidance remained, subject to the impact of the weather during the fourth quarter.
Fortescue had previously said that it would ship 165-million tonnes during the full 2016.
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