Shares of Australian mining giant Fortescue Metals Group (FMG.AX) jumped more than 5% on Thursday after the company reported record iron ore shipments for the fourth quarter, beating analyst expectations with lower costs. However, Fortescue also announced it is scrapping its green hydrogen projects in the U.S. and Australia, signaling a strategic shift.
The miner posted 55.2 million metric tons of iron ore shipments in the quarter—up from 53.7 million tons a year earlier—while production costs fell to their lowest level since 2020. For fiscal 2025, Fortescue shipped a record 198.4 million metric tons, hitting the upper end of its guidance range of 190-200 million tons, News.Az reports, citing Reuters.
Chairman and billionaire founder Andrew Forrest said the company is now evaluating options to repurpose the assets and land associated with the canceled Arizona Hydrogen Project and the PEM50 project in Gladstone, Australia. These write-offs are expected to cost approximately $150 million pre-tax in the second half of 2025.
Analyst Glyn Lawcock from Barrenjoey in Sydney said the quarter was “incredibly strong,” praising the exceptionally low costs and expressing relief over reduced capital expenditure. Fortescue forecast capital expenditures between $3.3 billion and $4 billion for fiscal 2026, down from $3.9 billion in 2025, while energy business operating expenses are expected to drop from $700 million to $400 million.
Looking ahead, Fortescue expects to ship 195 to 205 million metric tons of iron ore in the fiscal year ending June 2026, including 10 to 12 million tons from its Iron Bridge project on a 100% basis.
Despite broader mining stocks retreating on Thursday, Fortescue’s strong performance and strategic refocus on its core iron ore business have been well received by investors.
