Fortesque cuts iron ore production costs by 24% in Q1

Sydney

FORTESCUE Metals Group, the fourth-biggest iron ore exporter, cut first-quarter production costs by 24 per cent and trimmed debt, bolstering its balance sheet with prices forecast to extend declines.

Cash costs averaged US$16.90 a wet tonne in the three months ended Sept 30, down from US$22.16 a tonne in the previous quarter, the Perth-based company said on Thursday. It's forecasting costs will fall to US$15 a tonne by July and intends to revise earlier guidance that costs would average US$18 a tonne in the current fiscal year.