https://www.miningweekly.com

Fortescue profit surges 56% to $2.73bn

Fortescue profit surges 56% to $2.73bn

Photo by Bloomberg

20th August 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has reported a 56% increase in profit for the year ended June, as revenue surged on the back of increased production.

Fortescue reported a record net profit of $2.73-billion, up from the $1.7-billion reported in the previous financial year. Revenue for the financial year was also up by 45%, from $8.12-billion reported in 2013 to $11.75-billion.

The increased revenue was achieved as a result of record operational performances, with Fortescue shipping some 124.2-million tonnes of ore during the 12 months, a 54% increase on the previous financial year.

“Fortescue’s record net profit reflects an outstanding performance across all areas of our operation,” said CEO Nev Power on Wednesday.

“The accelerated ramp-up to 155-million tonnes a year in March and the sharp reduction in costs over 2014 are a tribute to everyone at Fortescue.”

Earnings before interest, tax, depreciation and amortisation increased by 58% year-on-year to $3.5-billion.

C1 cash costs decreased by 23% to $34/t, on the back of increased production from the lower-cost Firetail and Kings mines, the blending of low impurity Chichester and higher-grade Firetail ore to lower strip ratio’s at the Chichester Hub, enhanced processing capability, and a lower Australian dollar.

For the 2015 financial year, Fortescue expected to ship between 155-million and 160-million tonnes, at a C1 cash cost of between $31/t and $32/t. The expected reduction in the C1 cost reflected a full year of production from the Kings Valley mine, improved processing capability, operational efficiencies and innovations, the miner said.

The company was also expected to spend about $1.3-billion in capital expenditure during the next financial year.

“We remain steadfast in our commitment to debt reduction, with another $500-million to be repaid in October, taking repayments to $3.6-billion in less than a year and moving us closer to our gearing target of 40%,” Power said.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Latest News

MinRes to sell online in transparency push
MinRes to sell online in transparency push
Updated 2 hours 29 minutes ago By: Bloomberg

Showroom

Stewarts & Lloyds
Stewarts & Lloyds

Stewarts & Lloyds today supplies steel and tube, pipe and fittings, valves, pumps, irrigation, fencing, profiling and roofing products. The cash...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.115 0.146s - 92pq - 2rq
Subscribe Now