Fortescue (FMG) investor relations material

Executive summary

• Q1 FY27 iron ore shipments were 46.8Mt, including 2.5Mt of Iron Bridge Concentrate; sales of 42.9Mt were below shipments amid ongoing CMRG negotiations.

• FY27 shipment, Hematite C1 cost and capital expenditure guidance remained unchanged, subject to CMRG negotiations; unresolved talks by calendar year-end could affect operations.

Financial highlights

• Cash was US$3.2bn at 30 Sep 2026, versus US$5.1bn at 30 Jun; net debt rose to US$2.8bn from US$0.9bn.

• Q1 cash outflows included the US$1.0bn FY26 final dividend and US$916m of capital expenditure and investments; higher working capital included increased product inventory.

• Gross debt was US$6.1bn at 30 Sep 2026, versus US$5.9bn at 30 Jun.

Outlook and guidance

• FY27 shipments: 197–207Mt, including 11–14Mt from Iron Bridge on a 100% basis; Hematite C1 cost: US$20.50–US$21.75/wmt.

• FY27 Metals capex guidance is US$3.7–US$4.7bn; Energy capex is ~US$150m and net operating expenditure ~US$300m.

• Guidance assumes an FY27 average AUD:USD exchange rate of 0.70 and is subject to CMRG negotiations; if unresolved by calendar year-end, operations may be affected.

• Product inventory was expected to increase by a further 4–5Mt in Oct 2026 as product placement channels were optimized.