UPDATE 2.15pm: Shares in Fortescue Metals Group fell despite the Andrew Forrest-led iron ore miner lifting its full-year sales by 40 per cent to 55.8 million tonnes.
The company also says it achieved record shipments of 17.8mt in the June quarter, up 42 per cent on the previous three months, providing an annualised rate of 71mt.
Fortescue says it intends to maintain its production rate at around 60mt a year for the September 2012 quarter.
Routine maintenance undertaken in early July 2012 will ease production from the record June quarter, it says.
"The substantial ramp-up of production then commences through the December 2012 quarter as expanded output is generated from the new Christmas Creek OPF and handled at the port through the second in-load circuit," Fortescue said in a statement.
"The medium-term schedule is for total production over the first half of FY13 of around 38mt (inclusive of BCI JV production)."
Fortescue said its medium-term schedule was for total production in the first half of the 2013 financial year to be about 38mt.
Its full year production target for 2013 was 89mt.
During the June quarter, the average CFR cost was about $US125 per dry tonne.
The average cash costs per tonne (C1) of $US46.04 per wet tonne, fell 12 per cent on the prior quarter thanks to scale benefits from strong production pushing down unit costs.
The lower Australian dollar exchange rate also helped.
Fortescue said it had completed its review of the T155 port expansion project to triple the size of its Pilbara operations.
The review confirmed there would be a 7 per cent rise in the infrastructure budget from $US8.4 billion to $US9 billion.
Total expenditure by the end of June on the expansion project was $US4.4 billion for infrastructure and $US385 million for mine fleet.
Cash on hand by the end of June was $US2.3 billion.
Investors seemed spooked by the cost blowout on the expansion's infrastructure budget and sent shares in the company lower.After being up in early trade, FMG shares closed down 10 cents, or 2.16 per cent, at $4.54.
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