Fortescue reports solid quarter

PERTH (miningweekly.com) – Iron-ore miner Fortescue has reported a minor increase in production for the first quarter ended September, as production and shipments remained within guidance.

The miner told shareholders on Thursday that it had produced 49.5-million tonnes of ore in the three months to September – a 4% increase on the 47.8-million tonnes produced in the previous quarter.

Ore shipments also increased by 1%, to 43.8-million tonnes.

“Key to our sustained performance has been the alignment of our marketing and operations strategies to optimise production, maximise efficiency and consistently deliver quality products," said Fortescue CEO Nev Power.

“This has driven C1 costs to $13.55/t, the eleventh consecutive quarterly reduction, generating continued strong cash margins.”

Fortescue maintained its full-year production guidance of between 165-million and 170-million tonnes of ore shipped, with C1 costs expected to reach between $12/t and $13/t.

Fortescue recently acquired full ownership of the Nullagine project, in Western Australia, after buying joint venture (JV) partner BC Iron’s 75% interest for A$1. The company said that it would constantly evaluate the viability of restarting the mothballed operations, subject to market conditions.

Operations at the Nullagine JV were suspended at the end of last year on the back of falling iron-ore prices, with the project sending its last shipment in March.