By Digifin Pty Ltd · About this coverage
Key Points
- Q1 FY27 iron ore shipments 46.8Mt, six per cent lower than Q1 FY26, including 2.5Mt from Iron Bridge
- Sales of 42.9Mt below shipments, reflecting impacts from ongoing negotiations with CMRG
- Hematite realised price US$80/dmt, 82 per cent of the average Platts 61% CFR Index
- Net debt US$2.8 billion at 30 September 2026, up from US$0.9 billion at 30 June 2026
- FY27 shipments, C1 cost and capex guidance unchanged, subject to negotiations with CMRG
About Fortescue (ASX:FMG)
Fortescue Ltd is an ASX-listed iron ore producer headquartered in Perth. It mines, processes and ships hematite iron ore and magnetite concentrate from operations in the Pilbara region of Western Australia, using its own rail network and port facilities at Port Hedland. The company also develops renewable energy and decarbonisation projects through its energy business.
Fortescue (ASX:FMG) gave a preliminary September quarter update ahead of its 22 October 2026 Quarterly Production Report, disclosing lower shipments, a build in inventory and higher net debt, with sales affected by ongoing negotiations with China Mineral Resources Group (CMRG).
Total iron ore shipments were 46.8 million tonnes (Mt) in Q1 FY27, six per cent lower than Q1 FY26, including 2.5Mt from Iron Bridge. Fortescue says shipments were affected by maintenance, including scheduled port outload shutdown activity. Iron ore sales of 42.9Mt were below shipments, which the company says reflects impacts from the CMRG negotiations, and net operating cash flow was impacted by higher working capital, including increased product inventory. The hematite realised price was US$80/dry metric tonne, 82 per cent of the average Platts 61% CFR Index. Cash was US$3.2 billion and net debt was US$2.8 billion at 30 September 2026, compared with net debt of US$0.9 billion at 30 June 2026, after the US$1.0 billion FY26 final dividend and US$0.9 billion of capital expenditure in the quarter.
FY27 guidance for shipments, C1 unit cost and capital expenditure is unchanged but subject to the negotiations with CMRG. The release does not state the status or expected timing of those negotiations, or a C1 cost for the quarter.
Source: Fortescue Ltd (ASX:FMG), 8 October 2026. Summary content supplied by Digifin Pty Ltd.
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