The iron ore market is recovering after several years of tumbling prices because much of the excess low-cost supply has been absorbed, according to the world's fourth-largest producer.
Australia's Fortescue Metals Group reported a full-year net profit of $985 million, triple last year's $316 million net profit for the year to end-June, on the back of a sharp improvement in production costs. The company also hiked its final dividend by 500 percent to 12 Australian cents (9.1 U.S. cent) a share, up from just 2 cents in the same period last year.
Speaking to CNBC's "Street Signs," Fortescue CEO Nev Power said the iron ore market seemed more balanced than it had been in the past.
"Provided that the industry continues to respond to the market rather than just produce for production's sake, we should see the balance continue going forward," Power said.