Fortescue Ltd (FMG) delivered a record 201.3 million tonnes of iron ore shipments for the 2026 financial year, marking the first time the company has surpassed the 200 million tonne threshold. This milestone was underpinned by robust operational performance across its integrated supply chain, though the company’s year-end results will include a non-cash impairment charge of approximately US$525 million after tax related to the Iron Bridge project. The charge follows a revised ramp-up schedule and assessment of production scenarios for the magnetite operation.

Hematite operations maintained strong cost discipline, reporting a C1 unit cost of US$18.74 per wet metric tonne for the year, hitting the company's guidance. However, cost pressures emerged toward the end of the year; the Q4 Hematite C1 unit cost reached US$19.37 per wmt, a 6% increase over the previous quarter, driven primarily by higher diesel prices. Despite these inflationary headwinds, the company maintained a healthy balance sheet, closing the quarter with US$5.1 billion in cash and net debt of US$0.8 billion, even after directing US$3.6 billion toward capital expenditure throughout the fiscal year.

"Breaking through 200 million tonnes of shipments for the first time is a significant achievement and a credit to every person across the business. Results like this don't happen by accident. They reflect our Values in action and an unwavering focus on safer, more efficient operations. That discipline delivered unit costs within market guidance despite ongoing inflationary pressures."

— Dino Otranto, Fortescue Metals and Operations Chief Executive Officer

The Iron Bridge project is central to the company’s ongoing volume strategy. Shipments from the site reached 2.7 million tonnes in the June quarter, contributing to a total of 9.0 million tonnes for the year. This annual figure represents a 27% increase over the prior year, highlighting the project’s scaling output. Looking ahead, the company continues to focus on the full ramp-up of the operation to its nameplate capacity of 22 million tonnes per annum. Operational flexibility remains a priority, with the company currently assessing options to expand port outload capacity from 205 million tonnes per annum to 210 million tonnes per annum to accommodate increased throughput.

Operational progress extends beyond conventional mining, with the company continuing the commissioning phase for its Green Metal Project. This initiative serves as a key proof point for the integration of electric smelting technology, with management signaling that commercial-scale production trials are a major upcoming focus. Fortescue has also issued its production guidance for the 2027 financial year, forecasting total shipments in the range of 197 million to 207 million tonnes. This guidance includes an anticipated contribution of 11 million to 14 million tonnes from Iron Bridge, alongside a projected Hematite C1 unit cost of US$20.50 to US$21.75 per wmt, reflecting expectations of continued operational management in an evolving cost environment.

Read the full announcement: June 2026 Quarterly Production Report