Australia's third largest iron ore producer Fortescue Metals Group Ltd has announced its production results for the fourth quarter of fiscal year 2009, ended on June 30, 2009.
According to the Perth-based company's statement released on July 13, in the fourth quarter of the fiscal year 2009, Fortescue's iron ore shipments increased by 29 percent to 7.984 million mt, compared to 6.167 million mt in the third quarter of the fiscal year in question.
The company's production and shipments for the quarter and the full year were registered as follows:
Q4 FY 2009 (mt) |
Q3 FY 2009 (mt) |
Full FY 2009 (mt) |
|
Total ore mined |
8,898,547 |
6,545,026 |
31,005,907 |
Total ore processed |
8,543,416 |
6,455,367 |
27,793,158 |
Total ore railed |
8,205,002 |
6,473,666 |
27,647,493 |
Total ore shipped * |
7,983,739 |
6,167,117 |
27,312,832 |
*FMG shipments only
Commenting on the highlights of the results, Fortescue said, "The company's shipping and mining volumes exceeded fourth quarter and full year forecasts." In April, Fortescue said that it expected to sell about 26 million mt of iron ore in the year ending June 30, 2009.
Meanwhile, the company's production costs for the quarter and the full year were as follows:
Cash costs per mt |
Q4 |
Q3 |
Jul 08 - Mar 09 |
Full Year 2009 |
Mining and processing |
US$18.44 |
US$29.08 |
US$23.47 |
US$22.00 |
Rail and port |
US$4.48 |
US$7.90 |
US$5.87 |
US$5.46 |
Total direct costs * |
US$22.92 |
US$36.98 |
US$29.34 |
US$27.46 |
*All direct costs before government royalties and corporate admin. charges.
Unlike its larger rivals, Fortescue began mining in Western Australia in May last year.
The company also said in its statement, "Fortescue is currently selling at an interim price for each shipment with reference to a yet-to-be-concluded benchmark price. This may result in some price adjustments for shipments depending on whether, and if so when, any benchmark price is agreed."
The company added, "Based on fixed annual prices for iron ore fines already set at a 33 percent discount to last year between the world's largest miners and steel mills in Japan, South Korea and elsewhere, Fortescue will realise a price of around $57/mt, freight on board."