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Metalytics Resource Sector Economics’ November 2016 review listed FMG as the lowest-cost producer, narrowly edging out Rio Tinto and BHP Billiton.
FMG’s C1 costs for the September quarter were $US13.55 per wet metric tonne.
Full-year guidance is $12-13/wmt.
Only Vale has lower C1 costs, though its freight costs are more given the larger distance between Brazil and China.
“We are pleased that we have been formally recognised as the lowest-cost seaborne supplier of iron ore into China,” FMG CEO Nev Power said.
“This is testament to the hard work and commitment of the Fortescue team who remain absolutely focused on being the safest, lowest-cost and most profitable producer of iron ore.”
The Metal Bulletin 62% iron ore fines price hit a two-year high of $82.25/t overnight.
“At current iron ore prices we are generating strong cashflows and we will continue to repay our debt and strengthen our balance sheet,” Power said.
Net debt stood at $4.2 billion at the end of September with gearing sitting at 33%.
FMG shares hit a five-and-a-half year high today, reaching $A6.865 before closing at $6.69.
