Wedoany.com Report-Oct. 23, Australia’s Fortescue (ASX: FMG) reported a 4.2% increase in iron ore shipments for the first quarter, reaching a record level of production supported by higher hematite output.

During the quarter, hematite operations shipped 47.6 million metric tonnes (Mt), 3.3% higher than the same period last year. This brought Fortescue’s total first-quarter iron ore shipments to 49.7 Mt, slightly exceeding last year’s 47.7 Mt and aligning with Visible Alpha’s consensus estimate of 49.6 Mt.

Fortescue confirmed that it has drawn down a yuan-denominated loan worth 14.2 billion Chinese yuan ($1.99 billion), secured in August, to advance its decarbonisation projects. The five-year syndicated term-loan facility carries a fixed annual interest rate of 3.8% and is supported by a consortium of leading lenders, including Bank of China, ICBC, and other Australian and international financial institutions.

The world’s fourth-largest iron ore producer reported production costs of $18.17 per wet metric ton for the quarter, down 9.9% from a year earlier. The company stated that operational efficiencies and stable production performance contributed to the cost reduction.

Fortescue reaffirmed its full-year shipment guidance for fiscal 2026 at between 195 Mt and 205 Mt of iron ore. The company said its production performance in the first quarter demonstrates steady progress toward achieving its annual targets.

In its operational update, Fortescue highlighted that the record hematite shipments were supported by strong performance across its mining and processing operations in Western Australia’s Pilbara region. The company noted that its infrastructure network, including rail and port facilities, operated efficiently, enabling consistent delivery volumes to customers.

The firm also emphasized the importance of its financing strategy in supporting its transition efforts. The yuan-denominated loan is expected to accelerate Fortescue’s investment in renewable energy and decarbonisation initiatives under its long-term sustainability roadmap.

Fortescue stated that it continues to focus on maintaining production discipline, controlling costs, and enhancing operational reliability. The company reaffirmed its commitment to supply stability and efficient resource development amid global market fluctuations.

Overall, the strong quarterly results reflect Fortescue’s continued focus on cost management, production stability, and strategic financing to support both operational and environmental goals.