Australian iron ore giant FMG released its quarterly production report for June 2019, which showed a record quarterly shipping volume of 46.6 million tons and a cash production cost of $12.78 per wet ton.
The report also showed that quarterly shipping volume reached a record 46.6 million tons, including 4.7 million tons of West Pilbala powder, compared with 167.7 million tons in FY19, which was 1 per cent lower than in FY18 due to Hurricane Veronica.
In addition, FMG iron ore cash costs of $12.78 / wet tons, down 5% from the March quarter ($13.51 / wet tons), the average sales price increased by 30% to $92 / dry tons, compared with $71 / dry tons in the March quarter.
Elizabeth Gaines, president of FMG, said: "in the June quarter, the FMG team achieved outstanding results in terms of safety, production, cost and our product strategy. What is most gratifying is that our recorded total number of industrial accidents has dropped to 2.8, down 24% from the same period last year, reflecting our continued concern for safety. "
Elizabeth 100, "We set a quarterly shipping record of 46.6 million tons and reduced production costs by more than 5 per cent to $12.78 per wet ton, consolidating our position as the lowest-cost producer. In addition, with normal iron ore inventory levels in the supply chain, we are able to continue to provide our high-value product portfolio to our customers in fiscal 20. "
FMG recently established a new wholly owned sales entity in China to support our Chinese customers through direct supply of regional ports in China, providing customers with the option of buying small quantities of products in RMB. The entity completed its first renminbi transaction in June 2019 and will complement our existing long-term shipping arrangements.
It is worth mentioning that the official opening of Judy Street Port in Hedland Port marks the completion of FMG's tugboat infrastructure and integrated supply chain construction. The Ailvana mine and railway and Tieqiao magnetite projects are progressing according to plan and budget. In addition, the $287 million Queen's Valley Mine Development Project at the Solomon Hub was approved.
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