Fall in price of the iron ore:Fortescue Metals Group Ltd (ASX: FMG) stock fell over 6.8% as on April 13, 2017 after the iron ore price plunged 8.5% overnight as per Metal Bulletin updates (April 12, 2017) due to the lack of buyers, accelerating the commodities downturn. The iron ore spot price was found to be sitting around $US68.04 a tonne, which is a loss of 28% from its high in February of US$94.86. Meanwhile, the company has announced the March 2017 quarterly production report. FMG in its March 2017 quarterly has reported shipments of 39.6 million tonnes of iron ore. The cash production costs (C1) were US$13.06 per wet metric tonne (wmt), which is a 12% improvement over the prior comparable period and 4% above the December 2016 quarter due to wet weather impacts on production and shipments. Moreover, FMG has repaid a further US$1.0 billion of debt in the March quarter, reducing the gross debt to US$4.3 billion, inclusive of US$0.7 billion of finance leases with US$1.5 billion cash on hand at 31 March 2017. This debt reduction has lowered gross gearing to 31% with net gearing of 22%. Additionally, FMG is on track to deliver the guidance of between 165 and 170 million tonnes for the full year 2017 at a C1 cost of US$12-13/wmt.
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