Shares in Fortescue Metals Group experienced a slight dip of 0.3 per cent after initial gains, despite a healthy September quarter. According to Morgans deputy head of research, Adrian Prendergast, Fortescue’s shipments of 49.7 million tonnes marginally exceeded expectations during the period. Fortescue Metals Group is a global leader in the iron ore industry, committed to developing resources and integrated infrastructure. The company also aims to become a major green energy producer.
However, Prendergast noted that C1 costs, which refer to the direct production costs, have increased, and the Iron Bridge project continues to underperform. While the share price has seen support from robust iron ore prices, the stock is currently trading slightly above its perceived fair value. The company is facing some headwinds, especially concerning its energy expenditure.
Prendergast has maintained a “trim” rating on Fortescue’s stock. The financial year 2026 guidance remains consistent with previous expectations for shipments, C1 costs, and capital expenditure. Investors are watching closely to see how Fortescue navigates the challenges of rising costs and project performance.