Fortescue Metals Group, the world’s 4th largest iron ore producer, has recently released its operational review for the year FY16. According to the report, the miners has produced 91.2 MnT iron ore in H1 2016, up by 17.5% as it was 77.6 MnT in H1 2015.
In Q4 FY16, the miner produced around 47.8 MnT iron ore, up by 10% Q-o-Q as it was 43.4 MnT in Q3 FY16. However, on a Y-o-Y basis, production volume rose by 14%.
The miner shipped around 85.4 MnT (43.4 MnT in Q4 FY16 and 42 MnT in Q3 FY16) iron ore in H1 2016. On a Y-o-Y basis, shipments rose by 2.3% as it was 42.4 MnT in Q4 FY15.
Total 169.4 MnT iron ore was shipped in FY16, against 165.4 MnT of exports in FY15. The miner aims to ship around 165-170 MnT iron ore in FY17.
The average realized prices for Q4 FY16 was USD 48.7/MT. The cost of production at its mines had dropped by more than one-third to USD 14.3/MT from June quarter in FY15.
In addition, FMG is also optimistic about its iron ore blending project with Brazil’s Vale and expects it to get completed in near future.
Note: Australian FY16 started from 01 Jul’15 to 31 Jun’16
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