FMG’s quarterly production report is out:
A few points. Cost are falling fast and in line with guidance, not least because the miner is removing so much less dirt to get its best ore out of the ground – that is, high-grading. Two quarters ago it was removing 91mt of overburden per quarter. One year ago it was 107mt. Now it’s 41mt. Not sustainable over the long run but impressive for now.
Prices achieved rose in the quarter from $48 to $52 but discounts widened by $1 per tonne. Cash on hand rose $600m so it was clearly a profitable quarter. It looks like all-in break even is now running at around $38-40.