Fortescue Ltd (ASX:FMG) shares are slightly higher near $20.37, outperforming weaker iron ore peers Rio Tinto and BHP on a down day for miners.
The Andrew Forrest-led group’s quarterly result beat some market expectations. Investors are responding to Fortescue’s “robust start” to FY26, with hematite shipments of 47.6 million wet metric tonnes (mwmt) and unit costs of $US18.17/wmt, up 1% year on year and broadly aligned with expectations.
Jarden analysts Ben Lyons and Adam Bennett flagged upside at Iron Bridge, which delivered 9.3 mwmt, up from 2.9 mwmt in the June quarter. Iron Bridge shipments of 2.1 mwmt were 11% above their estimates but 13% below consensus.
FY26 guidance for shipments, costs and capital expenditure was unchanged.
RBC Capital Markets analyst Kaan Peker also judged the result better than expected. “Total iron ore shipments were broadly in-line with consensus, but ~1mt above RBC estimates, and realised pricing for Hematite also beat RBC estimates,” he said. Given the strong operational performance and likely near-term free cash flow benefits of the optimised hematite mine plans, he had anticipated “a positive reaction” to the result.
Rio, which is reportedly exploring an asset swap deal with largest shareholder Chinalco, is down 1% at $129.01; BHP, which has confirmed negotiations with China at its annual meeting, is off 2% at $42.48.