Ann: March 2014 Quarterly Production Report , page-13

Good news Farmboy!

I got some notes from the analysts call today.

FMG have been running at 165mtpa run rate for the last 3 weeks of March and intend to hold it there over the June quarter so their production target should be met.

Some interesting comments Nev made:-

1. China imported 222mt of Iron Ore in the March quarter which equates to 888mtpa up 19% on last year.
2. Chinese steel production was 2.26mt per day in the March quarter also up considerably.
3. They expect iron ore to average $110 to $120 in the next quarter.
4. Expect to announce significant increase in mine life and reserves across all mines in the next 2 months.

Interestingly Reuters are reporting Chinese steel stocks are decreasing weekly so looks like China will comfortably absorb the increased AU production.

Based on todays report I'd estimate their net debt will be down to around $5.5 billion at the end of the June quarter from $7.7 billion at the end of March, pretty amazing considering they only started down the debt reduction path in November.

At these levels of production the company will certainly be spinning off alot of excess cash going forward so we can expect dividends to significantly increase accordingly.