Cliffs’ Goncalves Expects 2017 to be Phenomenal
The cash costs for USIO was $58.57/ long ton, a 7% decrease from $62.88/ long ton in the prior year’s first quarter. The company attributed the decrease to having no idled active mines during the first quarter of 2017, compared to having two idled mines during the prior- year quarter.
First-quarter 2017 Asia Pacific iron ore (APIO) sales volume increased 9% to 3.0 million metric tons (mt), from 2.8 million mt in the first quarter of 2016 (1 mt = 1.1 st). The company said the volume increase was primarily related to the timing of shipments. Revenues of $54.35/mt increased by 32% compared to the prior-year quarter, driven by improved seaborne market prices.
Cash cost for APIO was $37.27/mt in the first quarter of 2017, a 15% increase from $32.42/mt in the prior-year quarter. The company attributed the higher cost to higher royalties, increased mining costs driven by a higher strip ratio, and an unfavorable exchange rate compared to the prior-year quarter.
Cliffs expects to produce more than 33 million tons of iron ore in 2017, includes 19 million long tons of USIO and 11.5 million mt of APIO.