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Fortescue hits cost target 6 months early amid iron ore crash

Published 28/01/2016, 09:53 am
© Reuters.  Fortescue hits cost target 6 months early amid iron ore crash
FMG
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MELBOURNE, Jan 28 (Reuters) - Australia's Fortescue Metals Group FMG.AX said on Thursday it had cut costs to $15 a tonne in December, six months ahead of target, helping it to stay in the black following a 35 percent plunge in iron ore prices last year.

The world's fourth biggest iron ore producer shipped 42.1 million tonnes in the December quarter, up 2 percent from a year earlier.

"Cost performance is well ahead of guidance with the targeted FY16 exit rate of $15/wmt (wet metric tonne) achieved in December 2015," Fortescue said in its quarterly report.

The company slashed costs in the December quarter to $15.80/wmt from $16.90 in the previous quarter and down 45 percent from a year earlier.

Fortescue also cut its net debt by $500 million to $6.1 billion in the December half, after buying back $750 million worth of notes that had been due in 2019 and 2022 at a discount and reducing its interest bill.

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