Australia: FMG posts record FY26 iron ore shipments; June quarter dispatches up 9% q-o-q

• Record annual shipments cross 200 mnt for first time
• Iron Bridge ramp-up supports FY27 shipment outlook

Fortescue Metals Group (FMG) reported total iron ore shipments of 52.7 million tonnes (mnt) in the quarter ended June 2026 i.e. Q4 FY26, down 5% y-o-y from 55.5 mnt but up 9% q-o-q from 48.2 mnt. The strong quarterly performance has helped the miner achieve record FY26 shipments of 201.3 mnt, surpassing the 200 mnt milestone for the first time and registering a 1% increase over FY25 shipments of 198.4 mnt.

Total ore mined stood at 64.9 mnt during the June quarter, up 1% y-o-y and 9% q-o-q, while ore processed reached 52.8 mnt, increasing 10% from the previous quarter but declining 3% from the same period last year. The better quarterly performance was supported by smooth mining, processing, rail and port operations, helping the company improve volumes compared with the previous quarter despite lower shipments on a year-on-year basis.Volumes are reported on a wet metric tonne (wmt) basis.

Fortescue Growth and Energy Chief Executive Officer, Gus Pichot, said “We are continuing to engage with China Mineral Resources Group through respectful, patient and good faith negotiations, grounded in fair and proper market practices. Approached in that spirit, the iron ore trade can continue to grow and serve as a powerful example of partnership between Australia and China.”

The negotiations have attracted market attention after reports earlier this month suggested that CMRG had asked select domestic Chinese steel mills to postpone deliveries of certain Fortescue portside iron ore products, reflecting differences over annual term contract discussions.

Operational highlights

Record shipments driven by stronger June quarter performance

FMG shipped 52.7 mnt of iron ore during the June 2026 quarter, comprising 50.0 mnt of hematite and 2.7 mnt of Iron Bridge concentrate. While overall shipments declined 5% y-o-y, they improved 9% from the previous quarter, reflecting stronger supply chain performance and higher mining and processing rates.For FY26, total shipments reached 201.3 mnt, including 192.3 mnt of hematite and 9.0 mnt of Iron Bridge concentrate, representing a 1% increase over FY25. Iron Bridge shipments rose 27% y-o-y, highlighting continued progress in the project’s ramp-up.

Other highlights

• FMG continued to strengthen its operational and financial position during the quarter.The company improved its safety performance, reporting a Leading Safety Index (LSI) of 172 and a Total Recordable Injury Frequency Rate (TRIFR) of 1.3 for the 12 months ended June 2026. Cash generation remained robust, with the cash balance increasing to US$5.1 billion, while net debt declined to US$0.8 billion at the end of FY26.
• Meanwhile, the Iron Bridge continues to ramp up towards its 22 mntpa nameplate capacity, although FMG expects to recognise a non-cash impairment charge of approximately US$525 million (after tax) in its FY26 financial results following a reassessment of the project’s ramp-up schedule. The company is also evaluating options to increase port outload capacity from around 205 mtpa to 210 mtpa over the medium term, providing greater flexibility to optimise product mix and future shipment volumes.

FMG’s FY27 guidance

• Shipment guidance: FMG has guided 197-207 mnt of total iron ore shipments for FY27, including 11-14 mnt from Iron Bridge (100% basis).
• Cost guidance: Hematite C1 unit cost is expected at US$20.50-21.75/wmt, based on an assumed average AUD:USD exchange rate of 0.70. Higher diesel prices, inflationary pressures and exchange-rate assumptions are expected to lift costs compared with FY26.

Note: FMG follows a July-June financial year, with FY’26 spanning July 2025 to June 2026.