 Revenue of US$3,344 million (1HFY15: US$4,858 million)...

 Revenue of US$3,344 million (1HFY15: US$4,858 million) reflects the 38 per cent reduction in the 62 Platts CFR price which averaged US$50.68/dmt during the half.
 Price realisations were 86 per cent or US$43.45/dmt, after taking into account all prior period and timing adjustments relating to finalisation of provisionally priced contracts.
 C1 costs decreased to US$16.34/wmt for the half, a 47 per cent reduction from the prior year. Operating performance and cost reductions exceeded expectations, offsetting the reduction in the iron ore price.
 Fortescue realised a pre-tax gain of US$192 million on the repayment of debt during the half year. Offsetting this was the write down of carrying values in the Nullagine Joint Venture together with other capital projects totalling US$80 million. Balance sheet
 Cash on hand at 31 December 2015 was US$2,318 million.
 Net debt at 31 December was US$6,130 million, inclusive of cash on hand and finance lease liabilities of US$451 million.
 During the half US$1,134 million in principal value of debt was repaid early generating annual interest savings of US$88 million per year.

 Capital expenditure was US$88 million reflecting productivity improvements, deflation and a lower average foreign exchange rate (1HFY15: US$436 million).
 The balance of iron ore prepayments at 31 December was US$773 million.

An additional US$100 million of new prepayments together with a US$200 million roll-over have been completed since 31 December.
Prepayments are now scheduled to amortise by US$300 million for the remainder of FY16, US$373 million in FY17 and US$200 million in FY18, subject to future rollovers.
Fortescue’s CFO Stephen Pearce said: “Our balance sheet remains strong as operations continue to generate positive margins and cashflows.
This has enabled us to take advantage of market conditions to reduce net debt by US$1.1 billion to US$6.1 billion and ensure we are well placed to continue with further debt reductions.”

Dividend
 Fortescue remains confident in its ability to continue to generate operating margins and cashflows to meet or exceed the capital and debt repayment obligations.

As a result, the Board has declared a A$0.03 per share fully franked interim dividend.

Guidance
 FY16 shipping guidance is maintained at 165mt.
 US$13/wmt cost of production exit rate in FY16.
 Full year C1 cost guidance for FY16 lowered to US$15/wmt based on an average exchange rate of 0.71 for the remainder of the year.
 Capital expenditure of US$200 million together with a further US$50 million of progress payments on eight Very Large Ore Carriers in FY16.
 Depreciation and amortisation charges of US$7.50/wmt shipped.