Fortescue Limited offers the best exposure to iron ore price

FMG is a mining company focused on iron ore production, shipments, costs and renewable energy expansion activities globally.

Fortescue Limited (ASX: FMG)

on 24 April 2026, disclosed their Quarterly Production Report for March 2026 for the third quarter of FY26. It reported a safety performance index rating of 173 and total recordable injury frequency rate of 1.4 for the 12 months ended 31 March 2026. Ore mined amounted to 59.5 Mt while ore processed stood at 47.8 Mt for Q3 FY26. Over nine months to 31 March 2026, ore mined stood at 181.0Mt and ore processed at 148.5Mt, both showing stable growth compared with the prior year period showing stable operational execution across mining sites and assets network.

Shipments and Product Performance

Total shipments of iron ore for the period stood at 48.4 million tonnes, which is an increment by 5% from last year’s figure in the same period. During the nine month period up to 31 March 2026, total iron ore shipped was 148.7 million tonnes, an increment by four percent from last year’s figures. Weather disruptions from Tropical Cyclones Mitchell and Narelle affected production and outloading. Hematite product achieved a realised price of US$92 per dry metric tonne and is showing 89% of the Platts 61% CFR Index. The iron Bridge Concentrate realised US$122 per dry metric tonne, equal to 101% of the Platts 65% CFR Index and 117% of the Platts 61% CFR Index reflecting mixed weather impacts and stronger export performance overall trend.

Financial Position

FMG reported a cash balance of US$4.2 billion and net debt of US$1.6 billion at 31 March 2026, after paying an interim dividend of US$1.3 billion and investing US$915 million in capital expenditure during the quarter. FY26 metals capital expenditure guidance is set between US$3.3 billion and US$4.0 billion though energy spending is around US$300 million with operating costs near US$400 million. The average exchange rate assumption is AUD to USD 0.65. The current annual dividend yield stands at 6.17% supporting balance sheet stability and returns outlook.

Guidance and Growth

FY26 total shipment guidance remains unchanged at 195 to 205Mt including Iron Bridge volumes of 9 to 10Mt. Hematite C1 unit cost guidance is maintained at US$17.50 to US$18.50 per wet metric tonne. FMG completed the acquisition of Alta Copper, adding exploration assets such as the Cañariaco Copper Project in Northern Peru. Construction has started on the Nullagine Wind Project and the Solomon Airport solar farm, planned to become a major renewable hub in Western Australia. The Green Metal Project at Christmas Creek is expected to produce first hot metal in the June quarter of 2026 whereas alternative reduction pathways are being explored.

The Pilbara Green Grid program targets 2.3GW of renewable capacity supported by 1.5GW solar, 800MW wind and over 5GWh of batteries. A US$680 million investment has been approved to expand firmed green energy capacity for industrial demand including data centres strengthening long term transition towards renewable integrated mining operations strategy.

(Source: Company Report)