Fortescue Metals Group Sets Record Shipments and Achieves Major Safety Milestones in FY25
Fortescue Metals Group Limited, a key player in the global iron ore market, has reported a stellar performance for the second quarter of the 2025 financial year. The company achieved record iron ore shipments, improved safety performance, and made remarkable strides in decarbonization and cost management.
Record Shipments and Operational Growth
Fortescue shipped 49.4 million metric tons (Mt) of iron ore in Q2 FY25, contributing to a half-year shipment total of 97.1Mt. This represents a 3% increase compared to H1 FY24 and marks the highest-ever half-year shipments in the company’s history.
Despite challenges from wet weather in the Pilbara region, Fortescue maintained strong supply chain management and healthy inventory levels to ensure continued operation. The company also reported significant contributions from its Iron Bridge Project, with shipments totaling 1.5Mt in Q2 FY25 and 3.2Mt for the first half of FY25. The Iron Bridge Project successfully completed a major shutdown of its ore processing and concentrate handling facilities during the quarter, further improving its operational efficiency.
Cost Management and Lower C1 Costs
Fortescue reported a reduction in its Hematite C1 cost, which decreased to US$18.24 per wet metric ton for Q2 FY25. This marks a 10% decrease from the previous quarter’s cost of US$20.16/wmt, reflecting Fortescue’s efficiency improvements through increased mining volumes, a favorable AUD to USD exchange rate, and a reduction in the strip ratio according to the mine plan.
This reduction in C1 costs highlights the company’s commitment to maintaining a competitive cost structure while expanding production. Hematite C1 cost guidance for FY25 remains between US$18.50 and US$19.75 per wmt, based on an average exchange rate of AUD:USD 0.68.
Safety Achievements: Record Safety Performance
Fortescue's commitment to safety continues to be a key focus. The company achieved a Total Recordable Injury Frequency Rate of 1.0 for the 12-month period ending 31 December 2024, a 44% decrease compared to 1.8 at the same time in 2023. This improvement underscores Fortescue's ongoing efforts to create a safer working environment.
In Q2 FY25, Fortescue reduced its TRIFR by 17% compared to Q1 FY25, highlighting the company’s strong focus on safety in all its operations.
Cash Position and Financial Stability
Fortescue reported a cash balance of US$3.4 billion and net debt of US$2.0 billion at the end of Q2 FY25. This solid financial position reflects the company’s continued strength, even as it invested US$1.0 billion in capital expenditure during the quarter. The company’s robust cash balance provides the financial flexibility needed to support its growth initiatives, including the transition to zero-emissions mining and the advancement of its green energy projects.
Decarbonization and Zero-Emission Mining Fleet Transition
Fortescue remains at the forefront of sustainability with its ambitious decarbonization plans. The company made a significant leap forward in this effort by awarding a contract to XCMG, a leading Chinese manufacturer, to supply over 100 pieces of heavy mobile equipment. These zero-emission vehicles are a key part of Fortescue’s strategy to transition its mining fleet to zero emissions by 2030.
Additionally, Fortescue has made significant progress in its green energy projects, including feasibility studies for projects in Norway and Brazil. The company is focused on refining its green technologies to help accelerate the global energy transition to Real Zero, a term representing the goal of achieving zero net emissions in its operations.
Operational Highlights for Q2 FY25
• Total Ore Mined: 61.9 million metric tons (Mt), representing a 12% increase compared to Q2 FY24.
• Total Ore Processed: 51.0 million metric tons (Mt), which is 5% higher than in Q2 FY24.
• Iron Bridge Shipments: 1.5Mt in Q2 FY25, contributing to a 3.2Mt total for H1 FY25.
• Hematite C1 Cost: US$18.24 per wet metric ton (wmt), a 10% decrease from Q1 FY25.
Despite the challenges posed by adverse weather conditions, the company’s operations have continued to thrive with a strong emphasis on increasing production efficiency, lowering costs, and prioritizing employee safety.
Revenue Performance
The company’s revenue performance for Iron Bridge Concentrate was strong, with an average revenue of US$117 per dry metric ton for the quarter. This is 99% of the average Platts 65% CFR Index and 113% of the average Platts 62% CFR Index, demonstrating solid pricing performance in a competitive market.
Modern Slavery and Human Rights Commitment
Fortescue’s commitment to human rights remains a cornerstone of its operations. The company recently published its FY24 Modern Slavery Statement, reaffirming its commitment to addressing modern slavery and respecting human rights across its global operations. This is part of the company’s broader sustainability agenda, which includes not only environmental goals but also strong corporate social responsibility practices.
Outlook for FY25
Fortescue’s guidance for the full fiscal year FY25 remains unchanged, with expectations for shipments, C1 costs, and capital expenditure continuing in line with previous forecasts. The company’s strong performance in the first half of FY25 sets the stage for a successful year ahead, driven by operational improvements, cost management, and sustainable practices.
