The Fortescue Ltd (ASX: FMG) share price is in focus after the ASX mining share announced its FY25 third quarter update to the ASX.
Fortescue is one of the largest iron ore miners in the world.
FY25 third quarter update
Fortescue reported that for the three months to 31 March 2025, its total iron ore shipped of 46.1mt was up 6% year on year, but down 7% compared to the second quarter of FY25.
Last year was affected by an ore car derailment, but this year it was impacted by several significant weather events, with the port of Port Hedland closed for five days.
Fortescue revealed that its average revenue for its (hematite) iron ore was US$87 per tonne for the quarter, while its C1 (production) costs were US$17.53 per tonne – down 4% compared to the second quarter of FY25. These two financial factors are key for the Fortescue share price, in my view.
The Iron Bridge project achieved revenue of US$117 per tonne.
Fortescue noted that it has successfully acquired Red Hawk Mining Limited for A$254 million.
The iron ore miner noted its guidance for FY25 shipments (of 190mt to 200mt), C1 costs (of US$18.50 to US$19.75 per tonne) and capital expenditure (of US$3.5 billion to US$3.8 billion for the mining segment) remain unchanged.
Green energy
This segment had big hopes of producing significant quantities of green hydrogen and green ammonia later this decade.
In this quarterly update, Fortescue said it has “continued to optimise and refine the green energy project pipeline, with timelines being reassessed and adjusted to reflect global market conditions and uncertain policy settings.”
Specifically, development timeframes for the Arizona and Gladstone PEM50 projects are being reassessed. The Australian federal election could provide clarity.
Fortescue said feasibility studies and planning approvals continue to progress for the Holmaneset project in Norway and the Pecem project in Brazil.
The Fortescue Zero division has completed production and shipment for the first T 264 power system to Liebherr from its production facilities in the UK. Additionally, Fortescue Zero has been announced as the official pit boost provider of the Formula E World Championship for season 11.
Final thoughts on the Fortescue share price
Fortescue shares have dropped amid the trade war between the US and China. Lower levels of iron ore buying could be problematic for Fortescue if that happened.
While this could be an opportunistic time to buy the iron ore miner, I wouldn’t be surprised if there were a lower Fortescue share price in the next couple of years.
It’s not one of the first ASX shares I’d buy today, there are a few ASX dividend shares and ASX growth shares I’d rather buy first.
