Fortescue, the iron ore mining company, saw its profit for six months ending December 31, slipping down to $43 million, a fall of 94 per cent. It fell from $760 million for the same period last year. Also, the income of the company has gone down sharply for the same period.

The fall is the result of rising iron ore prices coupled with other factors like the loan repayment time of the company and high cost of sales due to volatile foreign exchange movement.

As per the records given by the company, the cost of sales has risen from $598.3 million to $954 million. This rise can also be attributed to its plan to expand its run rate from 42 million tons to 45 million tons.

However, Fortescue saw its revenue increase by 17 per cent to reach $1.189 billion. But the revenue per ton shipped was down from $71.65 to $57.22.

But, even after such a poor show, the executives of the company said that in the future, the company has high hopes since it expects the demand to outstrip the supply.