Fortescue raises FY cost estimates

Iron ore miner Fortescue has warned full-year capital costs will increase due to the rising Australian dollar and major projects.

Fortescue on Thursday issued its third-quarter production report, which showed 53.6 metric tonnes was mined – a big increase on the 41.9 metric tonnes in the same quarter last year.

Shipments were steady at 42.3 metric tonnes, as per the same quarter last year.

Royal Bank of Canada mining analyst Kaan Peker said the quarter was weaker-than-expected due to higher costs and a lower realised price.

The miner increased its capital costs estimate for the full year from $US3 billion to $US3.4 billion ($A3.9 billion to $A4.4 billion), to $US3.5 billion to $US3.7 billion (($A4.5 billion to $A4.8 billion).

This was due to the strength of the Aussie dollar, works at its Iron Bridge magnetite project south of Port Hedland and efforts to reduce carbon emissions.

Fortescue shares were down 0.88 per cent to $22.42 at 1152 AEST.

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