An Australian iron ore giant has posted record iron ore production but higher-than-expected production costs have resulted in a marginally weaker quarter.
Fortescue shipped 100.2 million tonnes of iron ore in the December quarter, three per cent higher than the equivalent half in 2024 and its highest ever output for a first half.
"It was a record first half, with shipments reaching new highs across our operations," Fortescue Metals and Operations Chief Executive Officer, Dino Otranto said.
"This was achieved safely and sets us up well heading into the second half to meet our FY26 shipments and cost guidance."
However, hematite unit costs were five per cent higher in the three months to December compared to 2024's equivalent quarter, and underperformance at Fortescue's Iron Bridge project made for a marginally weaker quarter performance, according to RBC Capital Markets.
"Operational delivery was broadly as expected, however Iron Bridge timing weighed on the quarter," RBC researchers wrote.
"Hematite costs also missed, but guidance credibility remains intact."
Its update came days after competitor Rio Tinto reported its best quarterly iron ore production from its Pilbara operations despite major disruptions from extreme weather.
BHP's quarterly update was also broadly positive, although the giant on Wednesday conceded to accepting lower iron ore prices from China's state-back steelmaker on Wednesday after months of tough negotiations.
Fortescue continued to make progress on its green energy ambitions, delivering its first large-scale battery energy storage system at North Star Junction with a total capacity of 250 Megawatt-hours,.
The miner, founded by billionaire Andrew "Twiggy" Forrest, plans to roll out 4-5GWh of energy storage to decarbonise operations in the coming years.
With competition heating up for base metals critical minerals due to the global energy transition, Fortescue continued to grow its portfolio, including via assets in Latin America and Africa, chief of growth and strategy Gus Pichot said.
"In line with our critical minerals strategy, this quarter we entered into a binding agreement to acquire the remaining 64 per cent of Alta Copper's shares," he said.
"We've also continued to progress studies into the Belinga Iron Ore Project in Gabon, establishing a presidential taskforce to streamline the planning and delivery of an integrated mine, rail and port solution."
The news wasn't enough to counterbalance concerns from investors, who sent Fortescue shares 3.5 per cent lower by midday to $21.84, as BHP traded and Rio Tinto rose for a second consecutive session.
