Sydney, Feb 26, 2026, 17:47 AEDT — Market closed
- Fortescue slipped 1.4% on Thursday, pulling back after a pop in the previous session following results.
- The miner raised its interim dividend to 62 Australian cents. Shares are set to go ex-dividend on March 2.
- Iron ore prices and China’s steel production restrictions are drawing attention with early-March policy events on the horizon.
Shares of Fortescue Ltd (FMG.AX) slipped 1.4% to close at A$20.85 on Thursday, giving back a portion of the previous session’s gains following its half-year earnings. The stock had surged 4.7% on Wednesday.
Fortescue reported a record 100.2 million tonnes shipped in the first half, pushing net profit after tax to US$1.9 billion for the six months through Dec. 31. The company wrapped up the period with US$4.7 billion in cash on hand and net debt sitting at about US$1.0 billion. Underlying EBITDA reached US$4.5 billion. Guidance for the full year stays intact: shipments between 195 and 205 million tonnes, hematite C1 unit costs in the US$17.50-US$18.50 a wet tonne range, and metals capital spending set at US$3.3-US$4.0 billion. “We delivered record shipments of 100.2 million tonnes while keeping our people safe and costs low,” said metals and operations chief Dino Otranto in the statement.
Fortescue has announced a fully franked interim dividend of A$0.62 per share, giving shareholders the benefit of Australian tax credits. Shares will trade ex-dividend on March 2. The miner listed March 3 as the record date and set March 30 for payment. Investors have until March 4 to elect participation in the dividend reinvestment plan (DRP).
The stock surged up to 3.8% on Wednesday following the results, Reuters noted, leaving bigger players BHP and Rio Tinto behind. “Our products are moving well. We expect that to continue,” Otranto told analysts on the call. Reuters
Iron ore remains the swing factor here. On Feb. 25, 62% Fe CFR China futures sat at $99.07 a tonne. Fortescue’s heavy tilt toward hematite means shifts in the benchmark hit its cash flow almost immediately.
Things could get bumpier as March begins. According to Reuters, some northern Chinese steel mills have been told to trim production by a minimum of 30% between March 4 and 11, just ahead of the annual parliamentary session. Lange Steel’s Xin Ge expects mills to ramp up restocking of raw materials after the meeting, citing stronger steel prices.
Australia’s government is keeping an eye on annual iron ore pricing talks between major mining companies and China Minerals Resources Group (CMRG), after Reuters said the buyer had taken a harder line, including placing curbs on certain BHP brands. Treasury figures show that every $10 swing in iron ore prices can mean a roughly A$500 million change in tax revenue. Resources Minister Madeleine King described iron ore as “the bedrock of the economy.” Reuters
The dividend play isn’t a one-way street—shares typically drop by about the value of the payout on the ex-dividend date, sometimes erasing a day’s gains entirely. If iron ore prices slide further, or if Chinese customers start pushing for stricter terms, Fortescue could see its cost goals and shareholder payouts squeezed.
Heading into Friday’s session, investors face a decision: did Wednesday’s surge push the stock high enough for a full payout, or just set it up for a partial one? The ex-dividend date lands on March 2, with the record date following on March 3. As for the DRP, its schedule stretches through March 11, overlapping with the kickoff of Beijing’s policy meeting.
Fresh data on iron ore prices out of China—and any clues about just how aggressively steel mills scaled back production starting March 4—will likely shape the next move for Fortescue and its rivals. Watch for March 2 as the ex-dividend date, with the cash payout set for March 30.
