Fortescue shares took a hit after reporting lower iron ore output in Q3
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More news: Shares in Fortescue lost ground in morning trade after the company reported a downturn in total iron ore mined in the third quarter, which resulted in a 3% fall in mined volume and a 4% drop in shipping volumes.
Shares had fallen 5.84% to $19.74 at 2:41pm AEST.
However, RBC Capital Markets analyst Kaan Peker said Fortescue still delivered solid quarterly earnings, noting underlying strength in the core Hematite business. He added that the balance sheet remains robust, with net debt broadly in line with analysts’ expectations.
UBS holds a “sector perform” rating on the company, with a price target of $22.
Fortescue to invest $953m to expand Pilbara green energy capacity
The news: Mining giant Fortescue will invest USD680 million ($953 million) to expand its green energy capacity in the Pilbara, aiming to meet growing demand for green power, with a particular focus on data centres.
The numbers: The new investment into the new 200 megawatt project is in addition to the company’s previously announced USD6.2 billion decarbonisation program.
The context: Fortescue is set to deliver an integrated, off-grid renewable energy system and large-scale battery storage and firming capability. The project is expected to be completed by 2028, with a pathway to multi-gigawatt expansion beyond 2030.
The miner said it is engaging with interested parties and will develop the project with key partners, including government and traditional custodians.
Fortescue also reported a downturn in total ore mined and shipped during the third quarter. Mined volumes fell 3% quarter over quarter to 59.5 million wet metric tonnes (wmt), with shipped volumes down 4% to 48.4 million wmt.
The company retained FY26 guidance for shipments at 195 million to 205 million metric tonnes.
What they said: “Fortescue is already demonstrating in the Pilbara that heavy industry can operate on a fully integrated renewable grid — eliminating fossil fuels while improving cost, reliability and control,” said executive chairman Andrew Forrest.
“We are now extending this model to new customers, particularly data centres, helping meet one of the fastest growing sources of demand in the world.”
