What: Shares in Fortescue Metals Group Limited (ASX: FMG) were back on the winners' list today after the iron ore miner released its June 2014 quarterly production report. The shares rose 31c or 7.2% to $4.62.
So What: Although Fortescue only managed to ship 124.2 million tonnes of iron ore for the fiscal year, compared to its guidance of 127 million tonnes, investors were pleased with the miner's performance for the June quarter. Fortescue shipped a total of 38.7 million tonnes for the quarter – an annualised rate of nearly 155 million tonnes – while the month of June yielded an annualised rate of 160 million tonnes.
The miner also stated that it would continue to focus on removing unnecessary costs from the business, which should help it pay down its US$7.2 billion of net debt (as at 30 June 2014). It forecast an operating cost of US$31-32 a tonne for the next year, in comparison to last year's average of US$34.03 a tonne.
Now What: Fortescue is trading on a projected P/E ratio of just 4.9 and offers a forecast 5.2% dividend. While it presents as an appealing stock for those bullish on the iron ore price, it is also a far riskier option than its larger rivals due to its dependence on the commodity.
Rio Tinto Limited (ASX: RIO) also released an impressive set of operating results today, while BHP Billiton Limited (ASX: BHP) will provide an update of its operations on 23 July.
