Fortescue’s First-half Profit Falls 81 Percent

Mineweb reported that Fortescue Metals Group Ltd. (ASX:FMG) reported an 81-percent fall in its first-half profit after its margins were affected by a decline in iron ore prices and overproduction.

As quoted in the market news:

Despite an iron ore glut in Fortescue’s main market of China, it plans to keep production at 155-160 million tonnes in fiscal 2015, saying it can mine its ore for an average $28-$29 per tonne in fiscal 2015, providing sufficient margins.

Fortescue said in a statement:

The full impact of these falls will be realised in the second half of the financial year, assuming consistent pricing.

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