Update Fortescue Metals FSUMF

07/16/2009 2:31 pm EST


Jim Jubak

Founder and Editor, JubakPicks.com

Some good news for Fortescue Metals Group (FSUMF) from the ground this time. On July 14 the Australian iron ore miner announced that production for the fiscal year that ended on June 30 had hit 27.3 million metric tons. That beat the company's last forecast of 26 million tons. Costs also fell in the quarter, by 36%, to $22.92 (U.S.) a ton. The company still has a lot of work ahead of it: The goal for the first half of 2010 is to ramp production to an annual rate of 45 million tons and to take another $270 million (U.S.) out of costs. AS of July 14, I'm keeping my target price at $6 a share by March 2010. (Full disclosure: I own shares of Fortescue Metals.)
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