During the June 2015 quarter, Fortescue Metals Group shipped 42.4 million metric tons (mt) of iron ore, which was 5% higher than the previous quarter and in line with guidance. Shipments in fiscal year 2015 were 165.4 million mt, at the higher end of guidance and 33% higher than the previous year.
Fortescue has completed all expansion capacity and has also made a move to maximize value by maintaining shipments at 165 million mt/y, which has been the annualized run rate for the last 12 months.
The company said iron ore inventories have now been drawn down to efficient and sustainable levels with mining and processing outputs broadly matched to ensure inventory levels remain balanced to support shipments of 165 million mt/y on an ongoing basis.
Fortescue said it continues to optimize product strategy and maximize margins while sustaining mine life. As an example, Fortescue mined 83.5 million mt of material (ore and waste), 18% less than the previous quarter and 45% lower than the prior comparable period.
Fortescue also reported sustainable improvements in operating cost were delivered during the June 2015 quarter with C1 reducing to $22/wmt, a 14% reduction from the previous quarter and a 35% reduction from the prior comparable period. Total delivered costs to customers inclusive of shipping, royalty and administration costs, decreased to $31/wmt ($34/dmt), 9% lower than the prior quarter. Total delivered costs for June were $28/wmt.