Australia: FMG’s iron ore output falls 10% q-o-q in Q1CY’25; FY’25 guidance remains unchanged

• Iron ore shipments drop by 7% q-o-q in Q1CY’25
• Adverse weather impacts Q1CY’25 performance

Fortescue Metals Group (FMG), Australia’s leading miner, has released its operational results for January-March 2025 (Q1CY’25).

Iron ore production during the quarter stood at 55.5 million tonnes (mnt), down 10% compared to 61.9 mnt in Q4CY’24. However, on a y-o-y basis, the volume of ore mined climbed up by 19% from 46.6 mnt in Q1CY’24, with an increase in volumes across both FMG’s haematite operations and Iron Bridge facility. Additionally, the company’s shipment and cost guidances for FY’25 remained unchanged.

Volume references are based on wet metric tonnes (wmt).

Operational highlights

Iron ore shipments drop q-o-q in Q1CY’25

Total iron ore shipments in the quarter under review were recorded at 46.1 mnt, down 7% against 49.4 mnt in Q4CY’24. Shipments in Q1CY’25 were disrupted by several major weather events, including a five-day closure of the Port Hedland.

However, shipments increased by 6% y-o-y, compared to 43.3 mnt in Q1CY’24. This is because shipments in the corresponding period last year were affected by an ore car derailment.

Shipment, cost guidances for FY’25

• Shipment guidance: FMG maintained its full-year shipment guidance at 190-200 mnt, including 5-9 mnt from Iron Bridge.
• Cost guidance: Cost guidance for haematite also remained unchanged at $18.50-19.75/wmt.

Other highlights

• Construction commenced on a 190-megawatt solar farm at Cloudbreak, strengthening FMG’s commitment to decarbonisation.
• Iron ore exploration resumed in Pilbara following the wet season, with efforts concentrated on near-mine exploration at the Chichester Hub and infill drilling at Mindy South.
• Exploration efforts progressed at the Belinga Iron Ore Project in Gabon, with drilling operations resuming as part of the current campaign, which now includes four reverse circulation (RC) drill rigs.
• Ongoing optimisation and refinement of the Green Energy project pipeline continued, with timelines reassessed and adjusted in response to global market dynamics and evolving policy uncertainties.

FMG’s Chief Executive Officer, Dino Otranto, said, “Despite significant weather events, our teams delivered strong results, keeping us firmly on track to meet full-year guidance and achieve record outcomes.”

Fortescue Energy Chief Executive Officer, Mark Hutchinson, added, “This quarter marks another important step in Fortescue’s transition to Real Zero, with new innovations in zero-emission technology and continued progress in our green energy projects.”