Further efficiency gains likely for Fortescue, says Analyst Brenton Saunders

Further efficiency gains likely for Fortescue, says Analyst Brenton Saunders. Recently returning from a multi-pit tour of Fortescue's (FMG) Western Australian operations, Brenton shares his insights. On the ground it's clear the business is still maturing and still needs a significant amount of optimisation. We think that FMG can squeeze another 10% to 15% extra volume out of its current operations and, depending on currency fluctuations, a cost efficiency effect of 10% is possible. In the new Solomon hub I visited both the Kings and Firetail mines. These have really been only ramped up in the past 12 to 15 months. There are teething problems but the potential there is clear. I don't think there is a problem with port capacity either. It's clear FMG has more port capacity than I think people give them credit for. How long will iron ore prices remain a headwind for Fortescue? Click here for more (VIEW LINK)