Fortescue (ASX:FMG) Defies Weather Setbacks with Strong Production Surge in March Quarter

April 29, 2025 11:38 AM AEST | By Team Kalkine Media

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Fortescue (ASX:FMG) Defies Weather Setbacks with Strong Production Surge in March Quarter — Image source: shutterstock

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Highlights

Fortescue sees strong production growth despite weather challenges

Iron ore shipments rise with reduced cash costs

Full-year guidance remains firmly on track

Fortescue Metals Group (ASX:FMG) has delivered an upbeat operational update, highlighting resilience and growth despite facing significant weather-related disruptions in the March quarter. The mining heavyweight reaffirmed its full-year shipment and cost guidance, signaling steady operational momentum ahead.

The group reported an impressive 19% increase in iron ore mined during the quarter, totaling 55.5 million wet metric tonnes. Shipments rose 6% compared to the same period last year, reaching 46.1 million tonnes. Additionally, Fortescue achieved a 7% reduction in average C1 cash costs, bringing them down to US$17.53 per tonne, reflecting effective cost management initiatives across its operations.

Chief Executive Dino Otranto praised the team’s efforts, describing the results as "impressive" given the challenging weather conditions experienced during the quarter. Despite these hurdles, Fortescue remains firmly on track to meet its full-year shipment target of 190 to 200 million tonnes, which includes contributions from the Iron Bridge project estimated at 5 to 9 million tonnes. Cost guidance for the year has also been reiterated at between US$18.50 to US$19.75 per wet metric tonne.

An update was also provided on the Iron Bridge magnetite project, where Fortescue holds a 70% interest. The company continues to review the schedule for bringing the project to its full operational capacity of 22 million tonnes per annum. This assessment is expected to be finalized by June. Progress at Iron Bridge is seen as critical to the company's longer-term production ambitions, positioning Fortescue for future growth in the premium magnetite segment.

Fortescue’s operational strength, combined with disciplined cost control, underscores its solid positioning in the global iron ore market. The reaffirmation of its guidance further highlights confidence in navigating any upcoming challenges through the remainder of the financial year.

As the June review for Iron Bridge approaches, attention will remain on Fortescue’s execution capabilities, particularly in transitioning this key project to full-scale production. Overall, the March quarter performance reflects strong fundamentals and strategic operational resilience.

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