Fortes­cue cuts costs and debt

Pilbara News - - News - Stu­art McKin­non

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

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