Fortes­cue posts an­other strong quar­terly re­sult

Pilbara News - - News - Stu­art McKin­non

Fortes­cue Me­tals Group con­tin­ued its re­lent­less cost­cut­ting and debt-re­pay­ing drive in the De­cem­ber quar­ter, the iron ore miner’s quar­terly pro­duc­tion re­port has shown.

The An­drew For­rest-chaired miner an­nounced last week its C1 cash pro­duc­tion costs had fallen an­other 7 per cent over the quar­ter to $US12.54 per wet met­ric tonne, down a mas­sive 21 per cent on the pre­vi­ous cor­re­spond­ing quar­ter.

The Pil­bara miner also paid off an­other $US1 bil­lion in debt, re­duc­ing its gross gear­ing to 36 per cent and net gear­ing to 30 per cent.

Net debt was low­ered to $US4 bil­lion at the end of the year, in­clu­sive of $US1.2 bil­lion in cash and $US600 mil­lion of fi­nance leases.

Fortes­cue shipped 42.2 mil­lion tonnes of iron ore in the De­cem­ber quar­ter, down 4 per cent on the pre­vi­ous quar­ter’s fig­ure of 43.8 mil­lion tonnes, but in line with pre­vi­ous guid­ance.

The miner gave full-year ship­ment guid­ance of 165-170 mil­lion tonnes, sub­ject to weather events and full-year cost guid­ance of $US12-13 per wet met­ric tonne.

Chief ex­ec­u­tive Nev Power said Fortes­cue had de­liv­ered an­other strong quar­terly re­sult, achiev­ing im­proved safety per­for­mance, con­sis­tent pro­duc­tion and sus­tained cost re­duc­tions across all op­er­a­tions.

“Through con­tin­ued fo­cus on ef­fi­ciency and pro­duc­tiv­ity ini­tia­tives, C1 costs were low­ered for the 12th con­sec­u­tive quar­ter to US$12.54/wmt,” he said. “Our strong oper­at­ing re­sults to­gether with pos­i­tive mar­ket con­di­tions have gen­er­ated ex­cel­lent cash­flow, which sup­ported a fur­ther US$1 bil­lion of debt re­pay­ments in De­cem­ber.

“Ini­tial gear­ing tar­gets have been sur­passed and it is pleas­ing to see the rat­ings agen­cies recog­nise our per­for­mance and up­grade their rat­ings and out­look ac­cord­ingly.”

Pic­ture: Nic El­lis

Fortes­cue Me­tals Group chief ex­ec­u­tive Nev Power.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.