The Fortescue Ltd (ASX: FMG) share price is up 4% after the business revealed its June 2025 quarterly update.
Fortescue is one of the world’s largest iron ore miners and also has significant decarbonisation goals for its own operations as well as advancing green technology products.
Fortescue’s June 2025 quarter
The ASX mining share announced record total iron ore shipments of 55.2 million tonnes (mt) in the quarter. This contributed to record total shipments of 198.4mt in FY25, 4% higher than FY24.
Fortescue reported that shipments from Iron Bridge came to 2.4mt for the quarter and totalled 7.1mt in FY25.
The miner reported hematite C1 costs (production costs) of US$16.19 per wet metric tonne (wmt) in the fourth quarter of FY25. The costs were US$17.99 per wmt in FY25, being 1% lower than FY24 and achieved the first annual decline since FY20.
On the revenue side of things, the hematite (iron ore) average revenue was US$82 per dry metric tonne (dmt) for the quarter. For FY25 as a whole, the revenue was US$85 per dmt. Iron Bridge’s higher-grade iron ore saw revenue of US$108 per dmt for the quarter.
The company explained that strong cash flow generation led to a cash balance of US$4.3 billion and net debt of US$1.1 billion as of 30 June 2025.
Project updates and other highlights
Fortescue said its green energy project pipeline continues to be progressed and refined in a “disciplined manner” that “reflects global market conditions and policy settings”. The Arizona hydrogen and PEM50 project in Gladstone will not proceed.
An assessment is underway to repurpose the assets and the land.
Fortescue expects its financials for the second half of FY25 to reflect a write down of approximately US$150 million on the Arizona and Gladstone projects.
On the positive side of things, it has completed the transmission line between Solomon and Eliwana, as well as deployment of the first electric drill rig to the site.
Iron Bridge, which has an expected production capacity of 22mt per year, is now predicted to reach full operations in FY28 amid “further process optimisation”.
The business announced it has appointed Gus Pichot of growth and energy, with responsibility for the company’s green energy development and growth projects.
FY26 guidance
In terms of guidance for the new financial year, the miner revealed it’s expecting to deliver total FY26 shipments of between 195mt to 205mt, including between 10mt to 12mt from Iron Bridge.
The hematite (iron ore) C1 costs are predicted to be between US$17.50 per wmt to US$18.50 per wmt.
It’s expecting to spend approximately US$300 million on energy capital expenditure and US$400 million on net operating expenditure.
Final thoughts on the Fortescue share price
It’s a shame the business is not able to continue with the green hydrogen projects, but it makes sense not to continue when the demand isn’t there for the foreseeable future. Aside from that, it was a strong operational performance by the business in the last quarter and the guidance for FY25 is solid in my opinion. The unknown factor is what happens with the iron ore price, so we’ll have to see what happens with Chinese demand.
Following a recovery of the Fortescue share price in the last several weeks, I wouldn’t call it a great opportunity today. Other ASX dividend shares could be more appealing investments.
