Via Domainfax:
Evans & Partners analyst Andrew Hines said life would get progressively tougher for Fortescue in coming years, as rising energy and currency costs combined with mine depletion and persistent pricing discounts.
“Over the past four years Fortescue has deliberately lowered the average grade of its product by lowering the cut-off grade at its Cloudbreak operation to allow it to reduce the strip ratio and therefore production costs,” said Mr Hines in a note to clients.
