Expansions help Fortescue lift quarterly shipments
PERTH (miningweekly.com) – Iron-ore major Fortescue Metals’ expansion strategy continued to pay off during the three months to September as shipments increased and cash costs declined.
The miner reported on Thursday that quarterly shipments for the three months under review were up by 4% on the previous quarter, to 25.9-million tonnes, and up 61% on the previous corresponding period.
The volume of ore mined during the quarter also increased 2% on the June quarter, to 34.9-million tonnes, up 91% on the previous corresponding period as mining operations continued to focus on efficiencies and improvements, lowering strip ratios and reducing costs.
C1 costs for the three months to September declined to $33.17/t, down from the $36/t reported in June. Apart from the lower strip ratios and the focus on cost reductions, the reduced cash costs also reflected the devaluation of the Australian dollar, Fortescue said.
For the remainder of the 2014 financial year, a cost guidance of $36/t has been issued, based on a US/Australian dollar exchange rate of A$0.95.
Fortescue has also maintained its production and shipping guidance for the full year of between 127-million and 133-million tonnes of ore.
In the meantime, the development of the Kings deposit, at the Solomon hub, was nearing completion. First ore has been scheduled for December, and sustained production earmarked for March next year.
The Kings project would ultimately take Fortescue’s output to 155-million tonnes a year.
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