The Fortescue Ltd (ASX: FMG) share price is under the spotlight today after announcing its FY26 third-quarter update and a US$680 million investment in green energy.
Fortescue is one of the largest iron ore miners in the world. It also has a significant interest in decarbonisation and green energy.
Fortescue FY26 third-quarter
The miner reported that its total iron ore shipments came to 48.4mt in the three months to March 2026. This contributed to record shipments of 148.7mt in the nine months to 31 March 2026, up 4% year on year.
Shipments of Iron Bridge concentrate – a higher grade than Fortescue’s other production – were 2mt in the third quarter of FY26. Production and outload were impacted by weather disruptions from tropical cyclones Mitchell and Narelle.
Fortescue said that its production costs (hematite C1 unit costs) were US$18.29 per wet metric tonne (wmt) in the third quarter of FY26, down 4% quarter on quarter. C1 unit costs for the nine months to 31 March 2026 were US$18.52 per wmt.
In terms of the realised/sold price for its resources, Fortescue reported that the hematite realised price was US$92 per dry metric tonne (dmt) and the Iron Bridge concentrate realised price was US$122 per dmt.
The company said that its cash balance ended the March quarter at US$4.2 billion, with net debt of US$1.6 billion.
US$680 million green energy investment
Fortescue said it’s investing US$680 million into expanding its green energy capacity in the Pilbara to develop new green energy infrastructure, positioning the company to meet growing demand for green power from industries, including data centres.
It will rapidly develop the 200MW Pilbara green energy project, delivering additional renewable energy generation beyond what’s required for its ‘real zero’ by 2030 strategy. This is in addition to the US$6.2 billion decarbonisation program.
This will include an off-grid renewable energy system and large-scale battery storage and firming capability. This project is expected to be completed by 2028, with a “pathway to multi-gigawatt expansion beyond 2030”.
Fortescue highlighted it’s demonstrating a pathway to energy independence amid global fuel instability, enabling total control of costs and energy supply.
By 2028, it aims to have 1.2GW of solar, 600MW of wind, between 4-5GWh of battery storage and 620km of transmission lines.
Fortescue will develop this project with key partners, including government and traditional custodians.
Other updates
Fortescue noted that it has completed the acquisition of Alta Copper, securing ownership of its portfolio of exploration assets, including the Canariaco copper project in Northern Peru.
The miner also said it has started construction of the 133MW Nullagine wind project and 440MW Solomon Airport solar farm.
Fortescue also noted that the green metal project at Christmas Creek is expected to produce the first hot metal in the June 2026 quarter.
The business noted that FY26 guidance for total shipments is unchanged at between 195mt to 205mt. But, within that, Iron Bridge shipment guidance has been reduced to between 9mt to 10mt because of weather-related impacts.
Final thoughts on the Fortescue share price
The business is very serious about decarbonisation and putting a lot of money into it.
The fact it’s now seemingly investing for more than its requirements is an interesting development. It’d be interesting to see what sort of returns it’s expecting for these investments. More Australian-generated energy is a good sign, though.
However, with the Fortescue share price up 35% in the past year, the pre-open market valuation doesn’t seem very appealing to me to buy now shares. If I were a shareholder, I’d be happy with the company’s performance. There are other ASX dividend shares I’d focus on, though, until the Fortescue share price came down.
