Fortescue’s discounting disaster deepens

Thursday, 27 July 2017

FMG is up today in the general excitement over commodities:

But its quarterly production report was a bit of a disaster:

Fortescue has released its June 2017 quarterly production results, reporting shipments of 44.7 million tonnes (mt) of iron ore. Cash production costs (C1) were a record US$12.16 per wet metric tonne (wmt), a 15 per cent improvement over the June 2016 quarter and seven per cent lower than the March 2017 quarter. Guidance for FY18 has also been provided, targeting a further reduction in C1 costs to US$11-12/wmt and maintaining shipments of 170mt.

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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.