Investing.com -- Fortescue (ASX:FMG) shares sank to a 16-month low on Thursday after the miner's first-quarter iron ore shipments fell short of analyst expectations, with scheduled port maintenance and ongoing negotiations with China's state-backed iron ore buyer weighing on deliveries.
Shares fell 4.2% to A$14.62, underperforming the S&P/ASX 200's 0.5% decline and hitting their lowest level since June 23, 2025.
The miner shipped 46.8 million tonnes of iron ore in the first quarter of fiscal 2027, down 6% from 49.7 million tonnes a year earlier and below Visible Alpha's consensus estimate of 47.5 million tonnes.
Iron ore sales totalled 42.9 million tonnes, 3.9 million tonnes below shipments, reflecting the impact of ongoing negotiations with China Mineral Resources Group (CMRG). Fortescue said product inventories were expected to increase by a further 4 million to 5 million tonnes in October as it continued to optimise sales channels.
The company warned that operations could be affected if negotiations with CMRG were not concluded by calendar year-end, potentially including adjustments to production.
Hematite C1 unit costs rose 21% year-on-year to US$21.98 per wet metric tonne, reflecting inflationary pressures, lower supply-chain volumes and higher diesel prices. Diesel alone added US$1.40 per tonne compared with the year-earlier period.
The realised hematite price fell 10% year-on-year to US$79.79 per dry metric tonne.
Fortescue maintained its fiscal 2027 shipment guidance of 197 million to 207 million tonnes and hematite C1 cost guidance of US$20.50 to US$21.75 per tonne.
Original Article
Fortescue shares hit 16-month low as Q1 iron ore shipments miss estimates
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