Fortescue lifts Q4 production

Fortescue Metals Group has increased production in the June quarter and achieved a record run rate in the month of June, although its prices fell amid a broader slump in the iron ore price.

Fortescue Metals Group has increased production in the June quarter and achieved a record run rate in the month of June, although its prices fell amid a broader slump in the iron ore price.

The group shipped 38.7 million tonnes in the June quarter, compared with 25 million tonnes in the June 2013 quarter. 

In the month of June, the miner reported an annualised run rate of 160 million tonnes, which it said was a record, and shipped 13.3 million tonnes.

Over full-year 2014, Fortescue shipped 124.2 million tonnes, slightly below its estimate of 127 million tonnes provided in February.

Fortescue said its $US9.2 billion expansion to a run rate of 155 million tonnes per annum is now complete.

Over fiscal 2014, Fortescue's average realised price was $US106 per dry metric tonne, for revenues from Fortescue mined ore of approximately $US11.4 billion.

A recent decline in the iron ore price amid fears of oversupply has weighed on Australian miners, although the price has rebounded in recent weeks. Overnight, iron ore had edged up to $US96.90 a tonne. 

Fortescue said index prices fell in the June quarter due to volatility driven by new supply, but said it expects the market to rebalance in the short term as higher-cost production leaves the market.

The miner said it continues to focus on costs and noted fiscal 2014 capital expenditure was slightly below guidance at $US1.9 billion.

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