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Highlights

  • Record Production and Shipments: Fortescue mined 55.5 million tonnes and shipped 46.1 million tonnes in Q3, despite weather disruptions.

  • Cost Efficiency: Hematite C1 costs fell by 7% year-on-year to US$17.53 per wet metric tonne.

  • Guidance Maintained: Full-year 2025 shipment and cost guidance remain unchanged, signalling operational stability.

Fortescue Ltd (ASX:FMG) shares rallied on Tuesday after the iron ore major delivered a operational update for the third quarter, impressing investors with record shipments, higher production, and lower costs.
At the time of writing, Fortescue’s stock was trading 2.5% higher at $15.87.

Robust Production and Shipment Growth

For the three months ending 31 March 2025, Fortescue mined 55.5 million tonnes of ore, representing a 19% increase compared to the same period last year. The growth was driven by the performances from both its Hematite Operations and the Iron Bridge project.

Ore processing volumes also rose significantly, with 47.6 million tonnes processed during the quarter — a 12% year-on-year improvement. Cumulatively over the nine months to 31 March, the company processed a record 146.7 million tonnes, up 5% from the previous year.

In terms of shipments, Fortescue reported a 6% year-on-year increase, with 46.1 million tonnes shipped during the quarter. This achievement was notable given disruptions from several major weather events, including a five-day closure at Port Hedland due to Tropical Cyclone Zelia. For the nine-month period, shipments reached 143.2 million tonnes, marking another record and a 4% year-on-year rise.

The Iron Bridge project contributed 1.5 million tonnes of shipments during the third quarter, with total shipments for the financial year so far standing at 4.7 million tonnes. Despite weather-related disruptions, Fortescue maintained healthy stockpiles at both the mine site and the port.

However, the company flagged that the ramp-up of Iron Bridge to its full capacity of 22 million tonnes per annum remains under review. An evaluation of its air classification circuit and downstream conveyors is currently underway and is expected to be completed within the fourth quarter.

Cost Management

Cost performance remained a highlight for the quarter. Hematite C1 costs dropped to US$17.53 per wet metric tonne, a 4% decline from the previous quarter and 7% lower than the prior corresponding period.

Management attributed the improvement to favourable foreign exchange movements, a lower strip ratio, and operational execution.

Fortescue confirmed that its full-year 2025 cost and shipment guidance remains unchanged, providing reassurance to investors and analysts.