Is Fortescue selling out its costs advantage?

Andrew Forrest and his leadership team have taken the biggest step yet in their search for a volatility-proof balance sheet. But the asset sales risk undermining their production costs.

That was when the iron ore price tumbled below $US90 a tonne and Fortescue was forced into a radical re-shaping of what had been a very aggressive debt-funded expansion plan. It mothballed some of the planned increases in capacity, carved into its cost base, began selling non-core assets and refinanced its borrowings. Only a week ago Fortescue sold a 25 per cent interest in its Nullagine joint venture with BC Iron for $190 million.


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles