Fortescue reports drop in iron ore production | Finance News Network

Fortescue reports drop in iron ore production

Company News

by Kathy Skantzos

Iron ore miner Fortescue Metals (ASX:FMG) has reported an 8 per cent drop in total shipments of iron ore of 40.5 million tonnes for the December quarter compared to the prior quarter, which is 4 per cent less than the same time last year.

The company mined 47.5 million tonnes in the quarter, which is 4 per cent more than the first quarter, but a 5 per cent drop compared to the same time last year.

Cash on hand until December 2017 stands at US$0.9 billion following cash outflows for the Solomon Power Station purchase, dividends and a final FY2017 tax payment, and its gross debt is at US$4.2 billion.

Cash production costs were lowered to US$12.08 per wet metric tonnes, which is 4 per cent lower than the same time the previous year.

Fortescue CEO Elect Elizabeth Gaines, who will succeed Nev Power, says the company remains focused on growth, debt repayment, and strengthening its balance sheet.

Shares in Fortescue Metals (ASX:FMG) are trading 0.59 per cent lower at $5.06.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.