Fortescue shares are soaring

Andrew Forrest. Mark Nolan/Getty Images

Shares in Andrew Forrest’s Fortescue jumped higher after the pure play iron ore miner said it had further reduced its debt, slashed the cost of production again and shipped more ore.

A short time ago, the shares were up 5.4% to $4.345.

Fortescue, like the rest of the mining industry, has been cutting costs and increasing production, trying to catch falling commodity prices.

In its June quarter production results, Fortescue reports shipments of 43.4 million tonnes of iron ore, a 3% rise on the previous three months.

The cost of production was $US14.31 per tonne, a fall of 3% compared to the March 2016 quarter and 35% over 12 months.

The 2017 shipments target is between 165 million tonnes and 170 million tonnes. The cost target is $US12 to $US13 per tonne.

Net debt has been cut to $US5.2 billion after total repayments of $US2.9 billion during 2016, $US1.7 billion of that during the June quarter of debt.

“Costs have been lowered for the tenth consecutive quarter and our continued focus on productivity and efficiency measures will drive C1 (production) costs even lower in FY17,” says CEO Nev Power.

The production numbers in detail:

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