Fortescue (FMG) chief executive Nev Power said the latest offering had seen strong demand from the market.
“Once again the US capital markets have shown great support for Fortescue. The March 2015 quarterly results, reduction in operating costs and our track record of delivery have all been key factors in this great outcome for Fortescue,” Mr Power said
Executives at the besieged miner will have seen their spirits lifted by last night’s iron ore price move, however, with the near $US53 a tonne level higher than the firm’s break-even cost of production.
There is an article we also could find from The Australian Financial Review today.
According to their article, iron ore prices jumped on Wednesday (22 Apr 2015) after BHP Billiton curbed the pace of its expansion program, slowing the final stages of the $US120 billion race by the world's biggest producers to raise output.
Wednesday's decision will "lower the capital-expenditure profile a little over the next couple of years to preserve free cash flow to support the dividend and balance sheet", Andrew Driscoll, head of resources research at CLSA, said by phone from Perth, Australia.
"The side benefit of that is that it's supportive of the market and is a move against some of the negative public commentary about surplus supply," he said.
Fortescue's founder Andrew Forrest has called for a "fair game" on supply, while Western Australia Premier Colin Barnett last week urged suppliers to curb expansions.
There's little prospect of a long-term rebound with demand for seaborne supplies likely to peak in 2016, according to Goldman Sachs Group. The global surplus will rise to 108 million tons next year from 74 million tons in 2015, according to HSBC Holdings Plc.