Fortescue cuts costs faster than planned, its shares jump

The Fortescue Herb Elliott facility. Photo: Getty / File

Fortescue, with its margins squeezed by falling iron ore prices, has been able cut costs six months faster than planned.

A short time ago, shares in the pure iron ore miner were up more than 6% to $1.55.

In its quarterly production report, Fortescue says costs were well ahead of guidance with the targeted 2016 exit rate of $US15 per tonne achieved in December.

At the same time, the average realised price per tonne was $US40.46 over the quarter.

The company shipped 42.1 million tones, up 2% on the September quarter. The company has maintained its full year guidance of 165 million tonnes shipped.

“Fortescue continues to deliver strong results, improving the productivity and efficiency of our operations and further cementing our position as a low cost, reliable supplier of premium iron ore products to our customers,” says CEO Nev Power.

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