Metals Group has delivered a slight fall in first half profit and reaffirmed its full-year shipping guidance as it cuts costs to adapt to a falling iron ore price.
Net profit slipped 4 per cent to $US319 million in the six months to December, compared to the prior corresponding period, while revenue fell 31 per cent to $US3.34 billion.
C1 costs — an industry metric that basically refers to production costs — dropped 47 per cent to $US16 per tonne in the half, from $US30 in the prior corresponding period.
Total ore shipped, including third party product, rose 2 per cent to 84 million tonnes.
The miner reaffirmed its fiscal 2016 shipping guidance at 165 million tonnes.
Fortescue repaid $US1.1 billion of debt in the half, reducing its net debt to $US6.1 billion, inclusive of $US2.3 billion cash on hand.
Source: Heraldsun