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Rising Australian Dollar Hits Earnings at Fortescue

Fortescue Metals Group is facing rising production costs along with the rise of the Australian Dollar. The Chief Financial Officer of Fortescue, Stephen Pearce said that the strengthening Australian dollar has continued to have an impact over the quarter, given that approximately 70 per cent of the operating costs are in Australian dollars.

The third largest iron ore miner in Australia reported that despite a 9 % fall in shipments the tonnes shipped were more than the initial guidance. With the US Dollar to Australian Dollar exchange rate averaging 91c in September as compared to 88c average in the last quarter, production costs were higher.

As per Mr Pearce, the scheduled maintenance shuts and the rising dollar both affected the production costs to the tune of $1 per tonne in the September quarter as compared to the June quarter production costs.

The group is now implementing initiatives to offset the surge in the dollar to take out some of the exchange range pressure. Net profit for the Perth based company in the year ending June 30, 2011 may be estimated at $1.634 billion.

Joel Scanlon

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Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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