PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has achieved its eighth consecutive shipping record during the three months to September, with the miner delivering 41.5-million tonnes of ore to customers.

The increased shipping was up 7% on the previous quarter and an increase of 60% on the previous corresponding period, with Fortescue reaching an annualised shipping rate of 166-million tonnes a year.

Iron-ore production during the quarter declined on the quarter ended June, with Fortescue producing 42.9-million tonnes, compared with the 43.8-million tonnes.

The miner said on Thursday that a reduction in the mining rate was a strategic decision to reduce working capital, lowering the iron-ore stocks by a further 5% in the quarter.

Working capital reductions were expected to continue throughout 2015, Fortescue said.

C1 cash costs for the period were down 6% on the previous quarter to $32.08/t, reflecting the achievement of steady-state production, as well as the efficiencies delivered across all sites and improved production from the ore processing facilities.

Fortescue pointed out that its ore processing facilities had maintained a production capacity of beyond 155-million tonnes during the quarter under review, with the facilities delivering 38.9-million tonnes in the quarter. This was down 5% on the previous quarter owing to the focus on product quality improvements following the cessation of ancillary crushing feed.

For the full year, Fortescue was aiming to produce and ship between 155-million and 160-million tonnes, at a C1 operating cost of between $31/t to $32/t.

The company achieved a price of $71 a dry metric tonne (dmt) in the quarter under review, which compared with a benchmark price of $90/dmt.

Fortescue pointed out that a number of sales contracts remained open at the end of the quarter, which were subject to provisional pricing.

“In the falling iron-ore price environment this impacted on revenue recognition, which was $71/dmt, or 79% of the average 62% Plats CFR index, in the September 2014 quarter. As these contracts close, post quarter-end, pricing will finalise and an increasing price environment will likely result in higher realization rates during the December 2014 quarter,” Fortescue reported.