Fortescue Metals Group’s first-half profit has slid only 4 per...

Fortescue Metals Group’s first-half profit has slid only 4 per cent to $US319 million despite the plunging iron ore price.


The result was achieved despite a 31 per cent dive in revenue to $US3.34 billion.


The company has managed to curb the effects of the plunging ore price by savagely reducing costs.


Fortescue achieved a record low C1 cost of $US16 per wet metric tonne for the 84 million tonnes it shipped in the half year, in line with the targeted annual production rate of 165mt for the full-year.


And the Andrew Forrest-chaired miner said this morning it was targeting cost guidance of just $13 per wet metric tonnes by the end of the financial year.


Chief executive Nev Power said Fortescue’s results demonstrated the success of the team’s ongoing commitment to productivity and efficiency improvements.


“Our operational performance in safely driving sustainable improvements across the business is generating strong operating cashflows which provide a solid foundation for continued debt repayment and a modest increase in our dividend to three cents a share,” he said.


During the half, Fortescue repaid $US1.1 billion of debt and reduced net debt to $US6.1 billion inclusive of $US2.3 billion cash on hand at the end of December.


Fortescue said it remained committed to reducing debt towards the initial targeted gearing ratio of 40 per cent.


Shares in FMG were off three cents, or 1.43 per cent, to $2.07 at 7.10am.