Fortescue Was Down Today After It Put Out Its Quarterly Production Report

Getty/ Ian Waldie

Fortescue Metals Group was down more than 2% before the close today, after lifting the lid on its quarterly production figures.

At 3:32 it was down 2.17% or 0.08 cents to $3.60. Click this link for a live price.

The miner said its operating costs were getting cheaper, its production had increased and that it would continue to try and get customers to pre-pay for iron ore, which takes pressure off its cash-flows.

Meanwhile, a spokesperson told Fairfax Media no MRRT or mining tax had been paid over the June quarter.

‘‘We’re not seeing any MRTT in our future … we haven’t even booked the tax benefit that’s available to us,’’ a company official said.

Here’s the headline points from the company’s announcement:

  • June 2013 quarterly shipments were 25 million tonnes (mt), a 24% increase on the prior quarter. FY13 total shipments were 80.9mt, 41% higher than the prior year
  • US$6.2 billion capital expenditure in FY13, US$0.1 billion below guidance
  • Commercial negotiations for the sale of a minority interest in Fortescue’s rail and port assets are progressing
  • Cash balance of US$2.2 billion at 30 June 2013
  • Expansion projects remain on budget and schedule to initially achieve production at the 155mtpa run rate across the supply chain by end December 2013 and sustainably produce at 155mtpa post the wet season in March 2014
  • 120 million tonnes per annum (mtpa) shipping run rate in the month of June, 5mtpa greater than expectation

Read more here.

Now read: Myer Boss On Labour Costs: ‘We Ain’t World Competitive’

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