Fortescue releases December 2015 production quarterly report

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Image credit: twitter.com/FortescueNews

Australian iron ore company Fortescue Limited posted strong operating results for the December 2015 Quarter.

Image credit: twitter.com/FortescueNews

Fortescue announced that it has shipped 42.1 million tonnes of iron at a record low cash production cost of US$15.80 per wet metric tonne for the quarter, while also completing early repayment of US$750 million of debt (US$618 million of cash).

Chief Executive Officer Nev Power said the company’s cash balance at 31 December stood at US$2.3 billion, demonstrating the strength of its operating cashflow generation.

“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 customer,” commented Mr Power.

Adertisement

“The outstanding performance of our team combined with world class assets and effective strategy are driving sustainable improvements with production costs lowered for the eight consecutive quarter. This continues to generate operating cashflows which has allowed net debt to be reduced to US$6.1 billion.”

The company said that capital expenditure for the quarter was US$46 million, while exploration activity amounted to US$14 million and was primarily focused on its iron ore assets in the Pilbara.