Fortescue posts annual profit

Fortescue Metals has posted an annual profit of US$508 million after a loss of US$771 million at the same time last year.

Fortescue Metals has posted an annual profit of US$508 million following a loss of US$771 million at the same time last year, the company announced yesterday in its 2009 financial report.

According to the company, much of the profit can be attributed to the ramp up at its Cloudbreak iron ore mine in the Pilbara.

Fortescue shipped 27.3 million tonnes of iron ore for the year, which was derived from a total volume of 31 million tonnes.

The increased operations saw the company’s net revenue rise to US$1.83 billion from US$138 million in 2008.

“Fortescue’s transition from an exploration to a production company has resulted in generating significant cash inflows from iron ore sales,” the company said in the statement.

Fortescue said its second iron ore mine at Christmas Creek commenced operation in June this year, with materials being delivered to the Cloudbreak ore processing facility.

According to the report, Fortescue has net assets of US$850 million, with cash reserves of US$655 million, up from US$133 million at the end of the previous year.

Fortescue attributes much of its increased cash levels to its share subscription agreement with Hunan Valin, which raised US$452 million in new equity capital.

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