The flood returns for Fortescue

Tuesday, 30 January 2018

Fortescue’s December QTR production is out:

Discounts crashed from 71% to 66% quarter over quarter. Strip ratios and overburden removal are rising right along with diesel costs as it digs in for better ore to offset the discounts.

It has Buckley’s chance of hitting price guidance and costs are a growing problem as well. Net debt was up $600m for the first time in years.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.