Sydney, Jan 24, 2026, 16:56 AEDT — Market closed
- FMG closed Friday largely unchanged after tumbling sharply on Thursday.
- The December-quarter update showed record shipments for the first half, even as cash costs rose.
- The ASX will remain closed Monday in observance of Australia Day. Focus shifts to trading on Tuesday and the results set for February 25.
Fortescue Ltd shares (FMG.AX) closed Friday at A$21.51, up 0.14%, bouncing back slightly after a 5.1% drop the day before that knocked more than A$1 off the price. The ASX cash market will be closed Monday for Australia Day and will reopen on Tuesday. 1
Fortescue’s December-quarter production update triggered the selloff, highlighting rising unit costs and fresh doubts about the Iron Bridge ramp-up, its Pilbara magnetite project. CEO Dino Otranto mentioned on the call the company is sourcing more equipment from China, including battery storage from BYD, and called negotiations with China Mineral Resources Group “very, very robust.” Reuters reported the group has restricted some mills from buying rival BHP cargoes amid contract talks. Ben Richards, portfolio manager at Seneca Financial Solutions, linked the selloff to the higher cost figures, while Jefferies warned that Iron Bridge’s output still lags expectations. 2
Fortescue reported in its ASX filing that it shipped 50.5 million tonnes in the quarter ending Dec. 31, pushing first-half shipments to a record 100.2 million tonnes. The hematite C1 unit cost — which tracks mine-site cash costs before shipping and royalties — rose to US$19.10 per wet metric tonne, including moisture. Hematite’s average revenue came in at US$92.88 per dry tonne, about 88% of Platts’ delivered-to-China 62% benchmark. The company held US$4.7 billion in cash against net debt of US$1.0 billion. It also launched a 250-megawatt-hour battery energy storage system, the first step in a planned 4-5 gigawatt-hour rollout. Fortescue stuck to its FY26 outlook, forecasting shipments between 195-205 million tonnes and metals capital expenditure of US$3.3-$4.0 billion. 3
Iron ore gave miners no real lift as the weekend approached: iron ore fines 62% CFR China futures ended at $106.36 a tonne on Jan. 23, hardly budging. That benchmark still sits under Fortescue’s actual selling prices, where even small changes bite amid rising costs. 4
Fortescue stepped up its push for decarbonisation Saturday, the ABC reported. Work has started on a 133-megawatt wind farm near Nullagine in the Pilbara. The site will host 17 turbines and is set to finish in 2027. Otranto called the turbine design a “world first,” according to the broadcaster. 5
The market stayed shut Monday, leaving traders Tuesday to mull over the cost breakdown and Iron Bridge update — and decide whether Thursday’s sell-off went too far or was simply a reset.
The downside case is clear. Fortescue held firm on its FY26 hematite cash-cost guidance, even after costs ticked up in the December quarter. Yet, further cost hikes or setbacks in scaling Iron Bridge could pressure the stock. 6
Fortescue is set to release its half-year results on Feb. 25. Investors are watching closely for margin details and updated guidance on metals and energy investments. The company’s calendar shows the following quarterly production update scheduled for April 23. 7
