Fortescue lifts Q4 output by 20%

PERTH (miningweekly.com) – Iron-ore miner Fortescue Metals reported a 20% quarter-on-quarter increase in ore mined during the three months to June 30, with C1 costs down 7% over the same period.

Fortescue on Thursday reported that the miner produced 53.6-million tonnes in the fourth quarter, shipping some 44.7-million tonnes of ore, a 13% increase over the third quarter.

C1 cash costs for the quarter were down to $12.16/t.

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

“In 2017, we delivered on our targets by shipping 170.4-million tonnes of iron-ore, improving our C1 costs by 17% to $12.82/t, and generating strong cash margins during a period of volatility in the iron-ore prices.”

Power said that leading into 2018, Fortescue was well positioned to focus on productivity and efficiency initiatives to improve costs, to invest in the long-term sustainability of its core iron-ore business and to maintain production levels.

For 2018, Fortescue is targeting shipments of 170-million tonnes, with C1 costs expected to be between $11/t and $12/t.

“Capital management, further strengthening the balance sheet and generating shareholder returns remain our key priorities,” Power said.