Sydney, Jan 25, 2026, 17:07 AEDT — Market closed
Fortescue Ltd (FMG.AX) closed Friday at A$21.51, inching up 0.14%. The gain came after a sharp 5.12% drop the previous day, which had brought its cost structure under the microscope. (Investing)
Jefferies cut its price target for the miner slightly, from A$18.5 to A$18.4, while maintaining an “underperform” rating. The firm noted unit costs hit $19.1 a wet tonne, roughly 6% above consensus estimates, despite a lower strip ratio—the amount of waste rock moved to access ore. Jefferies added that any cost savings from hauling less waste might take a while to appear in reported figures, since the C1 cost line captures cost of sales. (Sahm)
The ASX cash market remains closed Monday, Jan. 26, for the Australia Day holiday, pushing the next trading day to Tuesday. Iron ore is in focus ahead of the open. On Friday, futures in China and Singapore nudged up slightly after six straight sessions of losses. The Dalian May contract gained 1.21% to 795 yuan a tonne, while Singapore’s February contract rose 0.97% to $104.65. (Business Recorder)
Fortescue reported December-quarter shipments of 50.5 million tonnes (Mt), pushing first-half shipments to a record 100.2 Mt. Hematite C1 unit costs increased to US$19.10 per wet metric tonne (including moisture). The company maintained its fiscal 2026 guidance with shipments forecast between 195–205 Mt and hematite costs expected at US$17.50–US$18.50/wmt. The cost rise was mainly due to inventory timing, higher diesel prices, and the AUD/USD exchange rate. Fortescue also revealed a cash balance of US$4.7 billion and net debt of US$1.0 billion as of Dec. 31. (Global)
During the investor call, CFO Apple Paget emphasized that C1 is a cost-of-sales metric, subject to fluctuations from inventory and timing factors. She added, “we have every confidence that we will be within our guided range.” Highlighting first-half figures, she noted hematite C1 costs at US$18.64/wmt. Iron ore projects director Graham Howard also reaffirmed the company’s “committed” stance on its 10–12 Mt Iron Bridge shipment forecast for the year.
Traders face a familiar but tangled equation: iron ore prices bear the brunt, while cost control determines Fortescue’s share of those gains.
The downside is straightforward to outline. If iron ore prices drop again, or if costs like diesel, freight, currency, or ramp-up issues don’t settle within the expected range, margins will take a hit, keeping brokers on the cautious side.
BHP and Rio Tinto tend to follow the same commodity trends, but Fortescue’s focus on lower-grade ore leaves it more vulnerable when discounts on those grades widen. Shifts in China’s restocking efforts versus production cuts during the Lunar New Year period can quickly change the market mood.
Fortescue’s half-year results drop on Feb. 25, with the March-quarter production report following on April 23. Investors will zero in on these dates for clearer signs on costs, Iron Bridge volumes, and cash discipline. (Fortescue)
