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Highlights

  • FY25 total iron ore shipments reached a record 198.4Mt, up 4% year-on-year.
  • Hematite C1 costs declined 1% YoY to USD 17.99/wmt, marking the first annual decrease since FY20.
  • Cash balance of USD 4.3 billion recorded at 30 June 2025, despite USD 3.9 billion in capital expenditure.

Fortescue (ASX:FMG) released its June 2025 quarterly production report, highlighting record full-year iron ore shipments and continued progress across its operational and energy transition initiatives. The company reported total shipments of 198.4 million tonnes (Mt) for the financial year ended 30 June 2025 (FY25), representing a 4% increase compared to the prior year.

For the fourth quarter, Fortescue shipped 55.2Mt of iron ore, contributing significantly to the record annual result. Iron Bridge Concentrate shipments totalled 2.4Mt during the quarter, bringing the full-year total to 7.1Mt.

Safety remained a focus, with a Total Recordable Injury Frequency Rate (TRIFR) of 1.3 in the 12 months to 30 June 2025, consistent with the prior year’s figure. The company also recorded improved cost performance, with Hematite C1 costs averaging USD 16.29 per wet metric tonne (wmt) in the fourth quarter and USD 17.99/wmt across FY25. This marked a 1% decrease year-on-year and the first annual decline in hematite production costs since FY20.

Average revenue for hematite products during the June quarter was USD 82 per dry metric tonne (dmt), representing 84% of the average Platts 62% CFR Index. For FY25, the average hematite revenue was USD 85/dmt. Meanwhile, Iron Bridge Concentrate achieved average revenue of USD 108/dmt for the quarter, realising 100% of the average Platts 65% CFR Index and 111% of the average Platts 62% CFR Index.

Operating performance and disciplined capital deployment supported cash flow generation. As of 30 June 2025, Fortescue reported a cash balance of USD 4.3 billion and net debt of USD 1.1 billion, following capital expenditure of USD 3.9 billion during the year.

Progress continues at the Iron Bridge project, with nameplate capacity of 22Mt per annum expected to be achieved by FY28. The ramp-up is ongoing, supported by process optimisation efforts.

Fortescue also advanced its decarbonisation initiatives, including completion of a new transmission line between the Solomon and Eliwana operations and the introduction of its first electric drill rig at site. However, the company announced that two green hydrogen projects—Arizona Hydrogen and PEM50—will not proceed, as part of a continued refinement of its green energy pipeline.

The company has also been recognised for its diversity and sustainability efforts. It was named the 2025 Best Company for Equal Opportunity by Parity.Org and was acknowledged as a global leader in Real Zero decarbonisation by Climate Integrity.

In terms of leadership, Fortescue appointed Gus Pichot as CEO Growth and Energy, responsible for overseeing green energy development and broader growth projects. Additionally, Ms Yasmin Broughton joined the Fortescue Board as a Non-Executive Director.

Looking ahead, Fortescue provided FY26 guidance for total shipments in the range of 195–205Mt. This includes 10–12Mt from Iron Bridge on a 100% basis. Hematite C1 cost guidance has been set between USD 17.50 and USD 18.50/wmt.

FMG's share price jumps 4.61% to AUD 19.05 per share on 24 July 2025.