The Fortescue Ltd (ASX: FMG) share price fell more than 1% after the ASX iron ore share announced its June quarter.
Fortescue is one of the largest iron ore miners in Australia, as well as one of the biggest in the world.
June quarter production
For the three months to June 2026, total iron ore shipments came to 52.7 million tonnes – that was up 9% quarter on quarter and up 1% year on year.
Shipments of Iron Bridge concentrate were 2.7mt for the quarter and totalled 9mt for FY26, a 27% increase year on year.
It said that its cost management resulted in its C1 (production) unit costs of US$19.37 per wet metric tonne (wmt) in the fourth quarter of FY26 and US$18.74 per wmt in FY26. This was within guidance despite inflationary pressures.
In terms of the price it sold its iron ore for, it said hematite (its lower grade iron ore) was sold for US$89 per dry metric tonne (dmt). The realised price was US$91 per dmt in FY26.
Meanwhile, the Iron Bridge concentrate realised price was US$118 per dmt.
Fortescue said that strong cashflow generation led to a cash balance of US$5.1 billion and a net debt position of US$0.8 billion at 30 June 2026. That’s after US$3.6 billion of capital expenditure in FY26.
Projects and investments
Fortescue reported that its port outload capacity is currently 205mt per year, with options being assessed to increase capacity to 210mt per year.
The ASX iron ore share said that the ramp-up of Iron Bridge and improved hematite supply chain performance provide flexibility to “optimise volumes and product mix in response to market conditions”.
Fortescue said that it has made rapid progress on the building of a fully integrated green grid, strengthening Fortescue’s long-term cost position as it decarbonises its Pilbara operations, while creating future opportunities to supply renewable energy to other industries.
The ASX mining share also noted it has commenced construction of the 690MW Turner River solar farm, which is the final solar installation required to deliver Fortescue’s ‘real zero’ decarbonisation target.
Fortescue also said it has started commissioning its green metal project, with the first hot metal now imminent. This will reportedly be an important ‘proof point’ for the integration of electric smelting technology into its Pilbara operations as it works towards commercial-scale production.
Iron Bridge impairment
The company reported that after considering Iron Bridge’s ramp-up schedule and a range of production scenarios, including nameplate capacity of 22mt per year, it said it expects to recognise an accounting impairment charge of approximately US$525 million after tax in its upcoming FY26 result.
This impairment will be excluded from the underlying net profit after tax (NPAT).
Final thoughts on the Fortescue share price
Fortescue is a great miner, and the fall of the valuation could be an appealing opportunity for brave investors. But, with the iron ore price seemingly on a downward trend, I don’t think this is the best time to invest in Fortescue.
I would prefer to invest when conditions are weak, whereas an iron ore price around US$100 is still reasonably solid.
For now, there are other ASX dividend shares I’d rather buy.
