01/06/2009 - 10:50

FMG books $618m gross profit

01/06/2009 - 10:50

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Fortescue Metals Group has recorded a gross profit of $US497 million ($A618 million) during the nine months to the end of March 2009.

FMG books $618m gross profit

Iron ore exporter Fortescue Metals Group has recorded a gross profit of $US497 million ($A618 million) during the nine months to the end of March 2009.

In a special purpose financial report released today, FMG reported revenue of $US1.4 billion ($A1.74 billion), while cost of sales was $US898.5 million ($A1.1 billion).

During the six months to the end of December 2008, before FMG started reporting in US currency, the miner reported a gross profit of $A600 million on the back of $$1.46 billion in revenue.

Throughout the March quarter, shipments passed 20 million tonnes (mt) while mining was impacted by heavy rains, with production volumes down 22 per cent to 6.55mt.

Processing of ore at the Cloudbreak mine was up 3 per cent to 6.1mt.

FMG booked an overall profit of $US1.18 billion ($A1.5 billion), including a fair value adjustment on a subordinated loan note of $US2 billion, a foreign exchange loss on borrowings of $US514 million and administration expenses of $US22.4 million.

The overall profit figure is a turnaround from the previous corresponding period's $US768 million loss.

Shares in FMG were up seven cents to $2.69 at 12:28 AEST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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