Fortescue: record Q1 shipments in strong start to FY25

Fortescue’s (ASX: FMG) iron ore shipments were 4% higher in Q1 FY25 compared to the same period last year, despite higher C1 cost driven by inflationary pressures and a higher strip ratio.

The Iron Bridge operation in WA, Fortescue’s first foray into the high-grade segment of the iron ore market, was a key player in this success, contributing 1.6mt to the 47.7mt total for iron ore shipments.

Fortescue Metals chief executive Dino Otranto says Fortescue’s strong start to FY25, with record first quarter iron ore shipments, was achieved while maintaining a group total recordable injury frequency rate (TRIFR) of 1.2.

“This strong operating performance means we are on track to meet our FY25 market guidance,” he said.

“We also celebrated a number of other milestones including the commencement of works at our green metal project at Christmas Creek [in WA,] which marks a pivotal moment in our journey to build a green metal supply chain.”

Fortescue Energy chief executive Mark Hutchinson says it has been an extremely successful quarter for the green technology team, with the unveiling of its autonomous battery-electric T 264 truck to the world.

“We topped off the milestone by also signing one of the biggest equipment deals on record, a $4.2b (US$2.8b) partnership with Liebherr to jointly develop and validate a range of zero emission equipment solutions for mining and heavy industry,” he said.

“Under the agreement, the equipment will be powered by the battery power system developed by Fortescue Zero.

“We continue to progress our green energy projects globally in a disciplined manner as we wait for the appropriate policy settings to support the market development.”

Fortescue also celebrated a significant milestone for its Billion Opportunities program, awarding more than $5b in contracts and sub-contracts to First Nations businesses since inception.

Guidance for FY25 shipments, C1 cost and capital expenditure remains unchanged.