Fortescue ushers in the ore production cuts

Tuesday, 4 September 2012

And so, the real pain begins. From Bloomie:

Sept. 4 (Bloomberg) — CEO Nev Power says in statement that staff numbers, operating costs would be reduced immediately to save ~A$300m.
* FY13 capex guidance cut to $4.6b from $6.2b
* Co. sees FY13 output 82Mt–84Mt vs prev guidance 86.5Mt
equity tons
* Co. to defer Kings development when iron ore prices recover; to complete development of Solomon when mkt recovers

That’s the end of the boom.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.