Australia: FMG’s iron ore output grows 16% q-o-q in Q2CY’25

• Iron ore shipments rise 20% q-o-q in Q2CY’25
• Full-year shipment guidance set at 195-205 mnt

Fortescue Metals Group (FMG), Australia’s leading miner, has released its operational results for April-June 2025 (Q2CY’25).

Iron ore production during this quarter stood at 64.3 million tonnes (mnt), higher by 16% compared to 55.5 mnt in Q1CY’25. Meanwhile, on a y-o-y basis, the volume of ore mined climbed up by 9% from 59 mnt in Q2CY’25, with an increase in volumes across both FMG’s haematite operations and Iron Bridge facility. The increase reflects solid performance in mining, processing, and railway operations, showcasing strong supply chain reliability and a continued focus on productivity.

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

Operational highlights

Iron ore shipments rose q-o-q in Q2CY’25

The company delivered record iron ore shipments of 55.2 mnt in Q2CY’25, contributing to a record total of 198.4 mnt in FY’26 (as per the Australian calendar). Volumes grew 20% against 46.1 mnt in the past quarter, whereas a decent 3% increment was observed on a y-o-y basis against 53.6 mnt in Q2CY’24.

The Q2CY’25 volume included haematite shipments of 52.8 mnt and Iron Bridge Concentrate shipments of 2.4 mnt. Record shipments were achieved while navigating the impact of weather disruptions in Q1CY’25.

Shipment, cost guidance for FY’26

• Shipment guidance: FMG has announced its full-year shipment guidance at 195-205 mnt, including 10-12 mnt from Iron Bridge (100% basis). This is slightly higher than the FY’25 shipment guidance of 190-200 mnt.
• Cost guidance: Cost guidance for haematite was set at $17.50-18.50/wmt, lower by $1-1.25/wmt from FY’25.

The guidance assumes an average AUD:USD exchange rate of 0.65 for FY’26 and factors in expected increases in labour costs and mine plan impacts, which are expected to be balanced by cost control and efficiency efforts.

Other highlights

• Iron ore exploration moved ahead in the Pilbara region, with several drill rigs in action, mainly around the Chichester Hub and Iron Bridge for near-mine exploration and at Mindy South and White Knight for infill drilling.
• The Belinga Iron Ore Project in Gabon continues to advance, where drilling is actively underway. The site currently has four reverse circulation (RC) rigs and one diamond core rig in operation.

The Australian financial year (FY) runs from 1 July to 30 June.