Fortescue shares slide as costs, Iron Bridge shipments miss consensus
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More news: Fortescue’s share price slid in morning trade after posting a miss to analyst expectations on the direct costs of hematite production and as shipments from the Iron Bridge operations missed consensus estimates.
At 11:34am AEDT, shares in Fortescue had fallen 3.6% to $21.82
RBC Capital Markets analyst Kaan Peker said that the stock price should be expected to take a “minor negative impact”, although he noted that "operational delivery was broadly as expected”.
Iron Bridge iron ore shipments missed consensus estimates by 17%. Meanwhile, Hematite production costs were 6% above the market consensus, but Peker said “guidance credibility remains intact”.
Peker said while Fortescue pointed to higher diesel prices due to an increase in the Australian to US dollar exchange rate, RBC believes “it’s a function of opportunistic mining given the higher Fe price, which has resulted in Fortescue favouring higher cost tonnes away from infrastructure”.
Fortescue iron ore shipments lift 3% in second-quarter to deliver record first-half
The news: Fortescue’s iron ore shipments hit 50.5 million tonnes in the second quarter of FY26, helping set a new first-half shipment record for the mining giant.
The numbers: Total ore shipments for the second quarter were 2% higher than the second quarter of FY25 and were 1% higher quarter on quarter. Total shipments for the first half came in at 100.2 million tonnes, which is 2% higher than the first half of FY25.
Total ore mined in the second quarter lifted 2% quarter on quarter to 61.4 million tonnes but was 1% down on the previous corresponding period. Total ore processed also fell 2% quarter on quarter and 2% on the previous corresponding period.
Direct costs of hematite production came in at USD19.10 ($28.24) per wet metric tonne in the second quarter, 5% higher than in the preceding quarter. Meanwhile, hematite average revenue hit USD92.88 per dry metric tonne, up from USD89 per dry metric tonne in the first quarter of FY26.
Shipments of concentrate from the Iron Bridge project hit 2.2 million tonnes in the quarter, up from 2.1 million tonnes in the preceding quarter.
The context: Fortescue reiterated its guidance for FY26 shipments, C1 unit cost and capital expenditure. During the period, Fortescue also progressed studies into the Belinga Iron Ore Project in Gabon and agreed to acquire the remaining interests in the Alta Copper project it did not already own. Fortescue also rolled out its first large-scale battery energy storage system in the Pilbara.
What they said: “It was a record first half, with shipments reaching new highs across our operations. This was achieved safely and sets us up well heading into the second half to meet our FY26 shipments and cost guidance,” Fortescue Metals and Operations CEO Dino Otranto said.
The source: ASX
