Quarterly shipments rise despite weather setbacks
Australian mining giant Fortescue has reported a rise in iron ore shipments for the third quarter of FY25, shrugging off the impact of severe weather events and logistical challenges. The Perth-based company shipped 46.1 million wet metric tonnes (wmt) of iron ore between January and March, up 6.5% year-on-year from 43.3 million wmt in the same period last year.
This increase puts Fortescue broadly in line with analyst forecasts, including a Visible Alpha consensus of 46.8 million wmt, and signals strong operational resilience in the face of natural disruptions.
Port closures and cyclone disruptions
The improvement comes despite significant weather-related interruptions, including the five-day closure of Port Hedland—Australia’s largest iron ore export hub—and the operational impact of Tropical Cyclone Zelia. These events contributed to a 7% decline in quarter-on-quarter output, yet Fortescue managed to keep annual shipment growth on track.
The strong Q3 showing was enough to send Fortescue shares up 2.1%, hitting a four-week high of A$15.80 on May 1, outperforming the broader mining index, which rose just 0.3%.
Iron Bridge performance and ramp-up under review
A key component of Fortescue’s long-term growth strategy, the Iron Bridge magnetite project, continues to show progress. The company shipped 1.5 million wmt of high-grade magnetite concentrate from Iron Bridge during the quarter—triple the 0.5 million wmt shipped in the same period last year.
Although quarterly sales were flat compared to the December period, Fortescue has increased its year-to-date Iron Bridge shipments to 4.7 million wmt, a significant rise from 0.6 million wmt last year.
While Fortescue had originally planned to reach full Iron Bridge production capacity of 22 million tonnes annually by September 2025, it has since withdrawn that timeline. The miner is now reviewing the ramp-up schedule, with a new assessment expected by June. Improvements to processing circuits, such as replacing the lining of air classifiers, were undertaken in Q3 to support future output gains.
Full-year guidance remains intact
Despite the Q3 disruptions, Fortescue has maintained its FY25 shipment guidance at 190 million to 200 million wmt, including 5 million to 9 million wmt from Iron Bridge. Capital expenditure guidance is also unchanged at $3.5 to $3.8 billion for the full financial year ending 30 June.
This consistency suggests the company remains confident in its ability to navigate the remainder of the year, despite continued market and environmental challenges.
Green energy projects under reassessment
In line with its broader decarbonisation strategy, Fortescue’s green energy arm is reviewing development timeframes for two major projects: the Arizona Project in the U.S. and the Gladstone PEM50 Project in Queensland. The company expects greater clarity on these ventures by June, reflecting the complex regulatory and logistical landscapes affecting their progression.
Fortescue also delivered its first T 264 Power System to Liebherr during the quarter. This diesel-to-electric conversion system for mining trucks marks a tangible step in the company’s push toward zero-emission mining equipment.
Product breakdown: moderate gains across the board
Fortescue increased shipments across all product categories in the March quarter. Notable gains included:
- Iron Bridge concentrate: up 200% year-on-year
- West Pilbara fines: up 13%
- Kings fines: up 2.6%
- Fortescue lump: up 13%
Meanwhile, the company’s flagship Fortescue Blend product remained flat year-on-year at 17 million wmt, while Super Special Fines held steady at 18 million wmt.
Despite the increases, iron ore fines—which require additional processing—made up 55% of total sales, slightly down from 56% in the same quarter last year.
Competitive advantage amid sector-wide downturn
Fortescue’s performance stands in contrast to its major Western Australian competitors. BHP and Rio Tinto both recorded declines in shipments during the January-March period—7.8% and 18% respectively—largely due to the same weather disruptions that affected Fortescue.
The company’s relative outperformance strengthens its position in the global iron ore market and highlights its operational flexibility and cost discipline.
Cost management remains strong
Fortescue also reported a 7% reduction in cash costs, which fell from $18.93/wmt in Q3 FY24 to $17.53/wmt this quarter. This was largely credited to improvements in mine performance. The company has kept its FY25 cash cost guidance unchanged at $18.50 to $19.75/wmt, although actual costs during the first half of the year averaged $19.20/wmt, placing it at the higher end of its target range.
Market outlook: demand softens, prices fall
Despite strong operational results, iron ore prices have declined steadily since January. The Argus 62% Fe fines index fell from $105.25/tonne on 31 January to $99.10/tonne on 28 April, reflecting softening demand from Chinese steelmakers and broader macroeconomic concerns.
Still, Fortescue’s strategic investments and ability to weather disruptions leave it well positioned to navigate a more volatile second half of FY25.
