By Digifin Pty Ltd · About this coverage
Key Points
- Iron ore shipments of 46.8Mt, but sales of 42.9Mt amid CMRG negotiations
- Hematite C1 unit cost of US$21.98/wmt, up 13 per cent on the prior quarter
- Net debt rose to US$2.8 billion from US$0.9 billion
- Maiden Blacksmith Ore Reserve of 196Mt at 58.0% Fe
- FY27 guidance unchanged, subject to CMRG negotiations
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)'s September quarter report shows iron ore sales falling short of shipments as negotiations with China Mineral Resources Group (CMRG) continue, and warns operations may be affected if they are not concluded by calendar year-end.
Figures are in US dollars. Shipments were 46.8Mt, including 2.5Mt from Iron Bridge, six per cent lower than Q1 FY26, while sales were 42.9Mt, 3.9Mt below shipments. Product inventory is expected to increase by a further 4 - 5Mt in October 2026. Hematite C1 unit cost was US$21.98/wmt, 13 per cent higher than the prior quarter, with higher diesel prices adding approximately US$1.40/wmt relative to Q1 FY26. The Hematite realised price was US$79.79/dmt, 82 per cent of the average Platts 61% CFR Index. Cash fell to US$3.2 billion from US$5.1 billion at 30 June 2026 and net debt rose to US$2.8 billion from US$0.9 billion, after the US$1.0 billion FY26 final dividend, US$916 million of capital expenditure and investments, and higher working capital including product inventory. The Blacksmith Project Mineral Resource increased 153 per cent to 615Mt, with a maiden Ore Reserve of 196Mt at 58.0% Fe, and first hot metal was produced at the Green Metal Project. FY27 guidance is unchanged at 197 - 207Mt of shipments, a Hematite C1 unit cost of US$20.50 - US$21.75/wmt and Metals capital expenditure of US$3.7 - US$4.7 billion.
Guidance is subject to the CMRG negotiations. The release does not say when they might conclude or what production adjustments could follow.
Source: Fortescue Ltd (ASX:FMG), 22 October 2026. Summary content supplied by Digifin Pty Ltd.
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