FMG iron ore output up by 8pct YoY in June quarter
2011-07-18 09:34:35 [Print]
Fortescue Metals Group has reported an 8% rise in June 2011 quarter production to 12.38 million tonnes from a year ago and said expansion work was on track to almost triple output over the next two and a half years.
Total shipments in the June 2011 quarter, which typically lag production, rose 6% to 11.5 million tonnes and are expected to rise further to between 12 million and 12.5 million tonnes in the current quarter. Shipments in the current quarter were being constrained despite the forecast increase in shipments due to work on the company's port operations.
Fortescue in June said it plans to speed up its expansion to 155 million tonnes of ore, originally set for 2014, by a year and has been progressively lifting its production rate, which reached 60 million tonnes a year in June.
Fortescue said it sold its iron ore at an average price of AUD 158 pre dry tonne, CFR, meaning that as the seller it pays cost and freight versus costs averaging AUD 53.23 a tonne.
Mr Nev Power, who succeeds Fortescue founder Mr Andrew Forrest as CEO, reiterated the company's expectations it will be three to five years before global iron ore prices are likely to soften in a conference call with media.
He said that "While we do not see a specific date in terms of a turnaround, I think it will be a gradual increase in supply meeting demand and we will see some softening in prices probably a three to five year time frame."
Total shipments in the June 2011 quarter, which typically lag production, rose 6% to 11.5 million tonnes and are expected to rise further to between 12 million and 12.5 million tonnes in the current quarter. Shipments in the current quarter were being constrained despite the forecast increase in shipments due to work on the company's port operations.
Fortescue in June said it plans to speed up its expansion to 155 million tonnes of ore, originally set for 2014, by a year and has been progressively lifting its production rate, which reached 60 million tonnes a year in June.
Fortescue said it sold its iron ore at an average price of AUD 158 pre dry tonne, CFR, meaning that as the seller it pays cost and freight versus costs averaging AUD 53.23 a tonne.
Mr Nev Power, who succeeds Fortescue founder Mr Andrew Forrest as CEO, reiterated the company's expectations it will be three to five years before global iron ore prices are likely to soften in a conference call with media.
He said that "While we do not see a specific date in terms of a turnaround, I think it will be a gradual increase in supply meeting demand and we will see some softening in prices probably a three to five year time frame."
