Why are Fortescue shares charging higher today?

What is getting investors excited today? Let's find out.

| More on:
A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

Fortescue Ltd (ASX: FMG) shares are on the move on Tuesday after investors responded positively to the release of its third quarter update.

At the time of writing, the iron ore giant's shares are up 2.5% to $15.87.

Fortescue shares higher on quarterly update

For the three months ended 31 March, Fortescue mined 55.5 million tonnes of ore, up 19% on the prior corresponding period. This was driven by higher volumes from both its Hematite Operations and Iron Bridge project.

Total ore processed came in 12% higher year on year at 47.6 million tonnes. This means that over the nine months to 31 March, Fortescue processed a record 146.7 million tonnes, which is up 5% year on year.

Iron ore shipments also impressed. The company shipped 46.1 million tonnes during the quarter, a 6% increase over last year. This was despite facing several significant weather events, including a five-day closure of the Port of Port Hedland. On a nine-month basis, shipments hit 143.2 million tonnes, another record and up 4% on the prior corresponding period.

Shipments from Iron Bridge contributed 1.5 million tonnes in third quarter, with a total of 4.7 million tonnes shipped so far this financial year. While Iron Bridge was impacted by Tropical Cyclone Zelia, Fortescue ended the quarter with healthy stockpiles at both the mine and the port.

One negative, though, is that the ramp-up at Iron Bridge to its nameplate capacity of 22 million tonnes per annum remains under review. An assessment of its air classification circuit and downstream conveyors is expected to be completed in the current quarter.

Costs down

Fortescue continued to perform well with its costs. Hematite C1 costs fell to US$17.53 per wet metric tonne, down 4% from the previous quarter and 7% lower than a year earlier.

Management credited the improvement to favourable currency movements, a lower strip ratio, and strong operational execution.

In light of this, all cost guidance (and shipments) for FY 2025 remains unchanged.

Commenting on the quarter, Fortescue Metals CEO, Dino Otranto, said:

We achieved another solid quarterly production result, shipping 46.1 million tonnes of iron ore while maintaining our outstanding safety performance. This was a particularly impressive achievement, as the team safely and effectively navigated several significant weather events in the quarter. With record shipments achieved for the nine months leading up to 31 March 2025, we remain on track to deliver on our full year guidance.

During the quarter, we also completed the acquisition of Red Hawk Mining which supports our strategy to continually optimise our iron ore operations in the Pilbara, giving us the flexibility to enhance our future mine plan.

Fortescue shares remain down 38% since this time last year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A group of people in suits and hard hats celebrate the rising share price with champagne.
Materials Shares

This ASX mining stock is jumping 11% on big news

This miner is having a good session on Thursday. Let's find out why.

Read more »

Lion leaping with mouth open, symbolising a rising Liontown share price.
Materials Shares

Why is the Liontown share price leaping 9% on Tuesday?

This ASX lithium share is the fastest mover of the ASX 200 today.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why is this ASX 300 lithium stock sinking 17% today?

What's going on with this lithium stock today? Let's find out.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Materials Shares

$10k invested in Pilbara Minerals shares 5 years ago is now worth…

Let's see if this lithium miner delivered the goods for investors.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

Experts reveal 2 buys and 1 sell in the ASX 200 materials sector

And they're not all mining companies, either.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Pilbara Minerals shares jumps 10% on big news

This lithium miner is having a day to remember on Wednesday. But why?

Read more »

Three miners looking at a tablet.
Materials Shares

Why Bell Potter says this ASX mining stock is a top buy

Let's see which stock the broker is tipping to deliver big returns.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Materials Shares

Down 39% in a year, why IGO shares still look overpriced

A leading expert doesn’t believe IGO shares are out of the woods just yet.

Read more »