Fortescue reaches record iron run rate

Iron ore exporter Fortescue Metals Group has notched up a record 160 million tonnes annualised run rate in the last month of the financial year.

FMG shipped almost 120mt of ore in the 12 months to June 30, after the completion of a $9.2 billion capacity expansion allowing production of 155mtpa.

The company earned over $US11 billion in revenue from ore sales, with an average price of $US106 per dry metric tonne.

The short-term outlook for iron ore was for a stabilisation of prices, with higher cost production leaving the market flattening the global cost curve, FMG said.

The company said cost reduction was its priority, with a $34 per wet metric tonne production cost and $18 of additional royalties, shipping and administration costs.

Capital expenditure for the financial year was slightly below guidance at $US1.9 billion with a further $US1.3 billion planned in the upcoming year.

FMG chief executive Nev Power was satisfied with the result.

“The accelerated rapid ramp up to a sustained 155mtpa rate for the June quarter highlights the outstanding achievements and commitment of everyone at Fortescue,” Mr Power said.

“I am very excited about FY15 with our continued drive towards global safety leadership and the dedication of our people to deliver another exceptional result for our company.”

FMG was down 0.5 per cent to $4.33 at the time of writing.