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From business spectator
Fortescue lifts Q2 production

• MITCHELL NEEMS
  
• 17 MIN AGO
  

• INDUSTRIES
  
• RESOURCES AND ENERGY

Fortescue Metals has maintained its full-year production guidance after a strong performance in the second quarter.

In the three months to December 31, Fortescue mined 43.6 million tonnes, a 36 per cent increase on the previous corresponding quarter's 32 million tonnes.

Total ore shipped, which includes third party product, was 41.1 million tonnes, a 47 per cent increase on the previous corresponding quarter's 28 million tonnes.

The shipments included 39.9 million Fortescue equity tonnes and 1.2 million third party tonnes.

Full-year production and shipping guidance of between 155 million tonnes and 160 million tonnes was maintained, with the miner saying it is supported by the strong first half performance leading into the wet season.





C1 costs decreased in the quarter, coming in at an average of $US28.48 per wet metric tonne, down from $US32.08 per wet metric tonne in the first quarter of the year.

Fortescue said the declines in the Australian dollar and price of oil toward the end of the end of the quarter positively impacted C1 costs.

As announced late last year, Fortescue capital expenditure guidance has been halved to $US650m, with a focus to be placed on cash management.

As at December 31, Fortescue has $US1.6 billion cash on hand.