Andrew ‘Twiggy’ Forrest executes extraordinary success with Fortescue

ANDREW ‘Twiggy’ Forrest has executed an extraordinary success with Fortescue — the number three in the Australian iron ore business behind Rio Tinto and BHP Billiton.

Andrew ‘Twiggy’ Forrest. Picture: Marie Nirme

ANDREW ‘Twiggy’ Forrest has executed an extraordinary success with Fortescue — the number three in the Australian iron ore business behind Rio Tinto and BHP Billiton, and fourth in the world when you add Brazil’s Vale.

A year ago Fortescue found itself in the uncomfortable position of being the world’s ‘swing producer’ into a looming oversupplied market. Just like, incidentally, BHPB found itself with US shale.

He wanted BHPB and Rio to ‘voluntarily’ cut their iron ore sales. He faced the prospect that it would be Fortescue having to do it ‘involuntarily.’

Over the last year, Fortescue has slashed costs as impressively as BHPB and Rio; and secondly, critically, slashed net debt as well.

Now it remains to be seen how sustainable the cost-cutting proves to be. But right now Fortescue has hauled itself away from both being the world’s ‘swing producer’ and being vulnerable on debt.

It’s done so despite BHPB and Rio continuing to pump iron, because that’s what we — including Fortescue it seems, do best.

Originally published as Andrew ‘Twiggy’ Forrest executes extraordinary success with Fortescue