Fortescue forecasts big drop in C1 cash costs

A 9% reduction in C1 cash costs for the March quarter, compared with the previous quarter, has allowed iron-ore major Fortescue Metals to significantly lower its full-year cost guidance for the next financial year. During the quarter under review, Fortescue achieved a C1 cost of $25.90/t, compared with the $28.48/t achieved in the second quarter of the 2015 financial year. The March quarter C1 cash costs were also 26% below the C1 costs achieved in the previous corresponding period.