Highlights

  • Fortescue reported record first-half iron ore shipments of 100.2Mt in H1 FY26.
  • Iron Bridge concentrate shipments rose 37% year-on-year to 4.3Mt in H1 FY26.
  • Net debt declined to USD 1.0 billion as cash balance reached USD 4.7 billion.

Fortescue Metals Group (ASX:FMG) delivered total iron ore shipments of 50.5 million tonnes (Mt) in Q2 FY26, lifting first-half shipments to 100.2Mt. This marked a three per cent increase compared with H1 FY25 and represented the highest first-half shipment volume in the company’s history. Total ore mined reached 121.5Mt during the first half, while ore processed totalled 100.7Mt, both reflecting a two per cent increase year-on-year.

Iron Bridge Concentrate shipments were 2.2Mt in the December quarter and 4.3Mt for H1 FY26, up 37 per cent compared with the same period last year. Iron Bridge volumes continued to contribute to the overall shipment mix, with Fortescue holding a 69 per cent equity interest in the project.

Costs, Revenue and Pricing Metrics
Hematite C1 unit costs averaged USD 19.10 per wet metric tonne (wmt) in Q2 FY26, contributing to a first-half average of USD 18.64 per wmt. The quarterly increase reflected inventory movements, higher diesel prices and the AUD:USD exchange rate. FY26 Hematite C1 cost guidance remains unchanged at USD 17.50–18.50 per wmt.

Hematite average revenue for the quarter was USD 92.88 per dry metric tonne (dmt), equivalent to 88 per cent of the average Platts 62% CFR Index and 90 per cent of the Platts 61% CFR Index. Iron Bridge Concentrate revenue averaged USD 121.68 per dmt, representing 102 per cent of the Platts 65% CFR Index.

Operational and Safety Overview
Fortescue reported a Leading Safety Index of 160 and a Total Recordable Injury Frequency Rate of 1.5 for the 12 months ended 31 December 2025. Total ore shipped in Q2 FY26 was 50.5Mt, while Fortescue’s attributable share was 49.8Mt.

China portside sales through Fortescue Trading (Shanghai) Co., Ltd. reached 3.8Mt during the quarter, with inventory timing differences noted between shipments and sales.

Balance Sheet and Capital Allocation
As at 31 December 2025, Fortescue held a cash balance of USD 4.7 billion, compared with USD 4.6 billion at the end of September 2025. Gross debt declined to USD 5.8 billion, resulting in net debt of USD 1.0 billion. Capital expenditure and investments totalled USD 759 million in Q2 FY26 and USD 1.7 billion for the first half.

Decarbonisation and Project Developments
During the quarter, Fortescue delivered its first large-scale battery energy storage system at North Star Junction, with a capacity of 250MWh. Construction also progressed at the Cloudbreak Solar Farm, while electric mobile equipment deployment expanded across mining and rail operations.

Separately, Fortescue entered into a binding agreement to acquire the remaining 64 per cent of Alta Copper’s shares and continued exploration and study activities at the Belinga Iron Ore Project in Gabon. 

Share Performance and Market Perspective
FMG shares traded at AUD 21.54 on 22 January, down 4.84% for the day. The stock declined 3.19% over the past month but rose 21.00% over six months and 13.24% over the past year. While first-half shipments reached record levels, sustaining such momentum may depend on global demand, cost pressures, and exchange rate fluctuations.