Sydney, Jan 24, 2026, 16:56 AEDT — Market closed
- FMG ended Friday mostly flat, following a steep fall on Thursday.
- The December-quarter update revealed record first-half shipments, though cash costs climbed.
- ASX will be closed Monday for Australia Day. Attention now turns to Tuesday’s trading session and results on February 25.
Fortescue Ltd shares (FMG.AX) ended Friday at A$21.51, rising 0.14% after taking a 5.1% hit the previous day that shaved over A$1 from the price. The ASX cash market will be closed Monday for Australia Day, with trading resuming Tuesday. (Investing.com Australia)
Fortescue’s December-quarter production report sparked the selloff, pointing to rising unit costs and renewed concerns over the Iron Bridge ramp-up, its Pilbara magnetite project. CEO Dino Otranto said on the call that the company is buying more equipment from China, including battery storage from BYD, and described negotiations with China Mineral Resources Group as “very, very robust.” Reuters noted the group has limited some mills from purchasing rival BHP cargoes amid contract talks. Seneca Financial Solutions’ portfolio manager Ben Richards tied the selloff to the higher cost numbers, while Jefferies cautioned that Iron Bridge’s output remains below expectations. (Reuters)
Fortescue revealed 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 — measuring mine-site cash costs before shipping and royalties — climbed to US$19.10 per wet metric tonne (including moisture). Meanwhile, hematite’s average revenue hit US$92.88 per dry tonne, roughly 88% of Platts’ delivered-to-China 62% benchmark. The company held a cash balance of US$4.7 billion against net debt of US$1.0 billion. It also rolled out a 250-megawatt-hour battery energy storage system, marking the initial phase of a planned 4-5 gigawatt-hour expansion. Fortescue maintained its FY26 guidance with shipments forecast between 195-205 million tonnes and metals capital expenditure pegged at US$3.3-US$4.0 billion. (ASX Announcements)
Iron ore offered little boost to miners heading into the weekend: iron ore fines 62% CFR China futures closed at $106.36 a tonne on Jan. 23, barely moving. This benchmark remains below Fortescue’s actual selling prices, where even slight shifts sting as costs climb. (Investing)
Fortescue stepped up its decarbonisation efforts Saturday, according to an ABC report. Construction is underway on a 133-megawatt wind farm near Nullagine in the Pilbara. The project features 17 turbines and aims for completion in 2027. Otranto described the turbine design as a “world first,” the broadcaster noted. (ABC)
The market was closed Monday, giving traders Tuesday to digest the cost breakdown and Iron Bridge update — and to figure out if Thursday’s sell-off was too harsh or just a reset.
The downside scenario is straightforward. Fortescue stuck to its FY26 hematite cash-cost forecast, despite a rise in the December-quarter figure. Any more cost increases or delays in ramping up Iron Bridge would likely weigh on the stock. (Mining Weekly)
Fortescue’s next major event is its half-year results on Feb. 25, with investors keen to see margin breakdowns and fresh guidance on metals and energy spending. Its calendar lists the next quarterly production update for April 23. (Fortescue)
