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Mining Weekly reported that Fortescue Metals (ASX:FMG) hopes to cut an addition $1.4 billion in costs in 2016 by delivering on improvement in both mining productivity and efficiencies.
Mining Weekly reported that Fortescue Metals (ASX:FMG) hopes to cut an addition $1.4 billion in costs in 2016 by delivering on improvement in both mining productivity and efficiencies.
As quoted in the market news:
This target was in addition to the $1.6-billion of total delivered cost savings achieved between 2003 and the end of the 2015 financial year.
Fortescue CEO Nev Power on Thursday said the company had delivered excellent results in all of its key performance measures, including safety, production and costs, during the financial year to June 30.
“Our efficiency and productivity improvements have embedded sustained cost reductions across the business, ensuring strong and consistent cash flows and the foundation for ongoing value creation.”
During the quarter to June 30, some $190-million worth of improvements were achieved in working capital through a reduction in iron-ore inventories. Fortescue’s C1 cash costs also dropped to $22.16/t for the quarter, down from the $25.90/t reported in the previous quarter. C1 costs of $19/t were reported in the month of June, which was ahead of guidance and provided a solid foundation for Fortescue to deliver on its 2016 C1 cost guidance of $18/t, Power said.