Fortescue (FMG) Q1 2025 TU earnings summary

Executive summary

• Achieved record first quarter iron ore shipments of 47.7Mt in Q1 FY25, up 4% year-over-year, including 1.6Mt from Iron Bridge.

• Group TRIFR improved to 1.2, a 29% reduction from 1.7 a year ago, reflecting a strong safety focus.

• Commenced works on the Green Metal Project at Christmas Creek and advanced green energy initiatives.

• Signed a US$2.8B partnership with Liebherr for zero emission mining solutions.

• Celebrated over A$5B in contracts awarded to First Nations businesses since program inception.

Financial highlights

• Cash balance at US$3.4B as of 30 September 2024, down from US$4.9B at 30 June 2024.

• Net debt increased to US$2.1B from US$0.5B at 30 June 2024, after US$1.9B dividend payment and US$780M capex.

• Hematite C1 cost rose 12% year-over-year to US$20.16/wmt, driven by higher strip ratio and inflation.

• Hematite average revenue was US$83/dmt, 83% of the Platts 62% CFR Index; Iron Bridge concentrate revenue was US$111/dmt, 97% of the Platts 65% CFR Index.

Outlook and guidance

• FY25 shipment guidance unchanged at 190–200Mt, including 5–9Mt from Iron Bridge.

• Hematite C1 cost guidance for FY25 set at US$18.50–US$19.75/wmt.

• Capital expenditure guidance: US$3.2–US$3.8B for Metals, US$500M for Energy, and US$700M net operating expenditure for Energy.