Fortescue Metals Group Ltd. (FMG), Australia’s third-biggest producer of iron ore, said fourth- quarter shipments rose 48 percent to a record, beating analyst estimates, as the company expands production.
Shipments were 17.1 million metric tons in the three months ended June 30, compared with 11.5 million tons a year earlier, Perth-based Fortescue said today in a statement. That compares with the 16.3 million ton median of three analysts estimates surveyed by Bloomberg.
Fortescue is planning to almost triple output capacity to 155 million tons a year by June to meet rising demand in Asia. The company today reported an estimated cost overrun of 7 percent for the expansion to $9 billion because of higher than expected costs to build railroads and port facilities.
Total ore shipped rose 53 percent from a year earlier to 17.8 million tons, Fortescue said.
Fortescue rose 1.9 percent to A$4.73 at 10:15 a.m. in Sydney.
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