Fortescue is out with its Q2 production report and the deluge is building:
Fortescue’s total iron shipments came in at 25 million tonnes, 40% up on 17.8 million tonnes shipped a year earlier. Fortescue mined 34.3 metric tonnes, a 79 per cent lift on the 19.2 per cent mined in the previous corresponding period. For the full year, Fortescue said it shipped 80.9 million tonnes, a 40.1% rise year on year. FY14 production and shipping guidance is between 127 million tonnes and 133 million tonnes. But FMG also confirmed that it is on track to mine and ship 155 tonnes from March next year.
It’s simply the greatest piece of good fortune in the world that India dropped out of the market when it did!
FMG also noted that C1 cash cost fell 17% to $36 per tonne. Royalties, haulage, drying, maintenance and shipping is probably another $35-40 so it’s a decent improvement in margins.
