Fortescue cuts costs and debt
Fortescue Metals Group has continued its policy of cutting costs and paying down debt, the iron ore miner’s September quarter production report has revealed.
FMG said its C1 cash production costs had fallen to $US13.55 a tonne in the quarter, representing a 5 per cent fall on the June quarter and 20 per cent reduction on the previous corresponding quarter.
The company repaid $US700 million of debt in the quarter, reducing net debt to $US4.2 billion, including $US1.8 billion in cash and finance leases of $US500 million.
Chief executive Nev Power said the key to was the alignment of its marketing and operations strategies to optimise production, maximise efficiency and consistently deliver quality products.
“This has driven C1 costs to $US13.55 per wet metric tonne, the 11th consecutive quarterly reduction, generating continued strong cash margins,” he said.
“All of our operations delivered strong production results during the quarter ... we also achieved a company-wide improvement in safety performance.”
The company shipped million tonnes in the quarter. 43.8