June 2016 Quarterly Production Report

July 27 (FMG) -- Fortescue has released its June 2016 quarterly production results, reporting shipments of 43.4 million tonnes of iron ore with cash production costs (C1) of US$14.31 per wet metric tonne (wmt), a reduction of three per cent compared to the March 2016 quarter and 35 per cent over the prior twelve months.
Guidance for FY17 has also been released targeting shipments between 165-170mt and C1 costs in the range of US$12-13/wmt.
Operating cash flows throughout the quarter supported additional debt repayments, with net debt lowered to US$5.2 billion at 30 June 2016 inclusive of cash balances of US$1.6 billion and total debt repayments of US$2.9 billion during FY16.
Chief Executive Officer, Nev Power, said “Our June quarter result demonstrates the consistent delivery of outstanding operational performance across all aspects of our business. Costs have been lowered for the tenth consecutive quarter and our continued focus on productivity and efficiency measures will drive C1 costs even lower in FY17.”
With net debt reduced to US$5.2 billion, we are fast approaching our initial balance sheet targets and will continue to apply cash flows to further reduce debt.”
Our team continued to innovate and deliver sustainable cost improvements through a focus on productivity and efficiency at our world class mining and infrastructure assets to generate long term value for our shareholders.”