Earnings release
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FORTESCUE | DECEMBER 2025 QUARTERLY PRODUCTION REPORT Page 1 of 4 Strong performance delivers record first half shipments of 100Mt Summary • Achieved a Leading Safety Index (LSI) of 160 and a Total Recordable Injury Frequency Rate (TRIFR) of 1.5 at 31 December 2025. • Total iron ore shipments of 50.5 million tonnes (Mt) in Q2 FY26 contributed to shipments of 100.2Mt in H1 FY26, three per cent higher than H1 FY25 and a record for a first half. • Shipments of Iron Bridge Concentrate were 2.2Mt in the quarter and totalled 4.3Mt in H1 FY26. • Hematite C1 unit cost of US$19.10/wet metric tonne (wmt) in Q2 FY26 contributed to a C1 unit cost of US$18.64/wmt in H1 FY26. • Hematite average revenue of US$93/dry metric tonne (dmt) for Q2 FY26, realising 88 per cent of the average Platts 62% CFR Index and 90 per cent of the average Platts 61% CFR Index. • Iron Bridge Concentrate revenue of US$122/dmt for the quarter was 102 per cent of the average Platts 65% CFR Index and 118 per cent of the average Platts 61% CFR Index. • Strong cash flow generation contributed to a c ash balance of US$4.7 billion and net debt of US$1.0 billion at 31 December 2025, after capital expenditure of US$759 million in the quarter. • Entered into a binding agreement under which Fortescue proposes to acquire the remaining 64 per cent of Alta Copper’s issued and outstanding common shares not already owned. • Delivered the first large-scale battery energy storage system (BESS), marking the first installation of a planned 4-5GWh rollout to support the Company’s decarbonisation in the Pilbara. • Following recent successful senior level visits to Gabon, a Presidential Taskforce has been established to streamline the planning and delivery for the Belinga Iron Ore Project. • Published the FY25 Modern Slavery Statement and maintained an A rating (Monash University) for the fifth consecutive year, the only mining and energy company assessed to achieve this. • Guidance for FY26 shipments, C1 unit cost and capital expenditure remains unchanged. Fortescue Metals and Operations Chief Executive Officer, Dino Otranto said “It was a record first half, with shipments reaching new highs across our operations. This was achieved safely and sets us up well heading into the second half to meet our FY26 shipments and cost guidance. “We also reached an important milestone during the quarter with delivery of our first large -scale battery energy storage system at North Star Junction. With a total capacity of 250MWh, this installation marks the first step in a planned 4-5GWh rollout of energy storage required to support the decarbonisation of our operations over the coming years. “We are fundamentally changing how we power our operations by combining firmed renewable energy, our high -voltage transmission infrastructure and growing electric fleet , led by Fortescue Zero technologies.” For personal use only
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FORTESCUE | DECEMBER 2025 QUARTERLY PRODUCTION REPORT Page 2 of 4 Fortescue Growth and Energy Chief Executive Officer, Gus Pichot said, “We continue to make disciplined progress across our global growth portfolio of metals, critical minerals, energy and technology opportunities. “In line with our critical minerals strategy, this quarter we entered into a binding agreement to acquire the remaining 64 per cent of Alta Copper’s shares. Fortescue will apply its strong track record of project delivery and well-established technical, permitting and community engagement expertise to diversify and expand our copper portfolio and exploration footprint in Latin America. “We’ve also continued to progress studies into the Belinga Iron Ore Project in Gabon, establishing a Presidential Taskforce to streamline the planning and delivery of an integrated mine, rail and port solution.” Operations Operations summary (M wmt) Q2 FY26 Q1 FY26 Var (%) Q2 FY25 Var (%) Total ore mined 61.4 60.1 2 61.9 (1) Total ore processed 49.8 50.8 (2) 51.0 (2) Total ore shipped 50.5 49.7 1 49.4 2 Total ore shipped (Fortescue share) 49.8 49.1 1 48.9 2 Hematite C1 unit cost (US$/wmt) 19.10 18.17 5 18.24 5 Volumes on a 100 per cent basis, unless stated otherwise. • An ongoing focus on safety contributed to an LSI of 160 and a TRIFR of 1.5 in the 12 months to 31 December 2025. Fortescue’s LSI assigns positive scores to promoters and negative scores to detractors of safety, calculating an overall index score for the business representing the presence of safety. • Total ore mined was 61.4Mt in the quarter and 121.5Mt in H1 FY26, two per cent higher than H1 FY25. Total ore processed was 49.8Mt in the quarter and 100.7Mt in H1 FY26, two per cent higher than H1 FY25, with an increase in volumes at Iron Bridge. • Total iron ore shipments of 50.5Mt in the quarter contributed to total shipments of 100.2Mt in H1 FY26, three per cent higher than H1 FY25 and the highest first half shipments in Fortescue’s history. This included shipments of Iron Bridge Concentrate of 2.2Mt in the quarter and 4.3Mt in H1 FY26, 37 per cent higher than H1 FY25. • Hematite C1 unit cost of US$19.10/wmt in Q2 FY26 was five per cent higher than Q1 FY26, predominantly reflecting the normalisation of the favourable inventory movement in the prior quarter, together with higher diesel prices and AUD:USD exchange rate. This contributed to a C1 unit cost of US$18.64/wmt in H1 FY26. • FY26 guidance for Hematite C1 unit cost is unchanged at US$ 17.50 - US$18.50/wmt, at the guidance exchange rate of AUD:USD 0.65. • Iron Bridge’s FY26 cash operating expenses excluding shipping and royalties is unchanged and anticipated to be approximately US$650 million (Fortescue’s share). Hematite (M wmt) Q2 FY26 Q1 FY26 Var (%) Q2 FY25 Var (%) Ore mined 52.0 50.9 2 56.4 (8) Overburden removed 82.2 99.5 (17) 87.1 (6) Ore processed 47.7 48.5 (2) 49.3 (3) Ore shipped 48.3 47.6 1 47.9 1 For personal use only
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FORTESCUE | DECEMBER 2025 QUARTERLY PRODUCTION REPORT Page 3 of 4 Iron Bridge (M wmt) Q2 FY26 Q1 FY26 Var (%) Q2 FY25 Var (%) Ore mined 9.4 9.3 1 5.5 71 Overburden removed1 3.4 6.8 (50) 2.2 56 Ore processed 2.2 2.3 (7) 1.7 26 Ore shipped 2.2 2.1 4 1.5 44 Volumes on a 100 per cent basis, Fortescue has 69 per cent equity share of Iron Bridge. 1 Excludes development overburden. Marketing Product summary (M wmt) Q2 FY26 (%) Q1 FY26 (%) Q2 FY25 (%) Iron Bridge Concentrate 2.2 4 2.1 4 1.5 3 West Pilbara Fines 3.3 6 4.0 8 3.6 7 Kings Fines 4.0 8 3.3 7 4.1 8 Fortescue Blend 16.9 34 18.3 37 18.1 37 Fortescue Lump 2.1 4 2.3 5 1.9 4 Super Special Fines 21.9 44 19.6 39 20.2 41 Total shipments 50.5 100 49.7 100 49.4 100 - Fortescue share 49.8 - 49.1 - 48.9 - Volumes on a 100 per cent basis, unless stated otherwise. Timing differences may occur between shipments and sales as Fortescue Trading (Shanghai) Co., Ltd. holds inventory at Chinese ports. • Hematite average revenue of US$92.88/dmt in Q2 FY26 represents a realisation of 88 per cent of the average Platts 62% CFR Index of US$105.99/dmt and 90 per cent of the average Platts 61% CFR Index of US$103.23/dmt. • Iron Bridge Concentrate revenue of US$ 121.68/dmt in Q 2 FY26 was 102 per cent of the average Platts 65% CFR Index of US$118.75/dmt and 118 per cent of the average Platts 61% CFR Index. • China portside sales through Fortescue Trading (Shanghai) Co., Ltd. were 3.8Mt in Q2 FY26. Decarbonisation and Energy • Fortescue Zero’s focus on research and development continues to support the decarbonisation of Fortescue’s operations and deliver solutions for other heavy emitters. • Continued implementation of Fortescue’s decarbonisation plan, with delivery of the first large- scale BESS to North Star Junction , while construction of the Cloudbreak Solar Fa rm has progressed with over 300,000 panels now installed. • Further progress on the deployment of electric mobile equipment with the electric excavator fleet expanding to 12 units and two 14.5MWh battery electric locomotives delivered to site for integration with Fortescue’s rail operations. • Fortescue is maintaining a pipeline of green energy and technology projects and continues to assess project viability and timing in line with evolving customer demand, regulatory settings and its disciplined capital allocation framework. For personal use only
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FORTESCUE | DECEMBER 2025 QUARTERLY PRODUCTION REPORT Page 4 of 4 Minerals exploration • In December 2025, Fortescue and Alta Copper Corp. entered into a binding agreement under which Fortescue proposes to acquire the remaining 64 per cent of Alta Copper ’s issued and outstanding common shares not already owned through a Canadian Plan of Arrangement. • The proposed acquisition is consistent with Fortescue’s critical minerals strategy which has a focus on expanding the Company’s copper portfolio , which also includes exploration projects in Argentina and Kazakhstan. • Iron ore exploration activities progressed with multiple drilling programs across the Pilbara , including a focus on drilling at White Knight which sits to the west of Cloudbreak. • Exploration and study activities continue to advance at the Belinga Iron Ore Project, with four reverse circulation drill rigs and one diamond core rig operating. A Presidential Taskforce was established during the quarter to streamline the planning and delivery of an integrated mine, rail and port solution for the Project. • Exploration activity within Fortescue’s critical minerals portfolio included drilling in Argentina, New South Wales and Queensland. Preparations for drilling continued at projects in Canada, Kazakhstan and South Australia. Target generation activities advanced across the portfolio. • Total exploration and studies capital expenditure in Q2 FY26 was US$82 million. Financial position • Fortescue’s cash balance was US$4.7 billion at 31 December 2025, compared to US$4.6 billion at 30 September 2025. • Total capital expenditure and investments for the quarter were US$759 million and total capital expenditure and investments for H1 FY26 were US$1.7 billion. • Gross debt was US$5.8 billion at 31 December 2025 ( US$6.5 billion at 30 September 2025) and net debt was US$1.0 billion (US$1.9 billion at 30 September 2025). • Further optimisation of Fortescue’s debt capital structure with US$750 million of aggregate principal repurchased across its 2030 and 2031 Senior Unsecured Notes during the quarter. FY26 guidance • Iron ore shipments of 195 - 205Mt, including 10 - 12Mt for Iron Bridge (100 per cent basis). • C1 unit cost for Hematite of US$17.50 - US$18.50/wmt. • Metals capital expenditure of US$3.3 - US$4.0 billion. • Energy capital expenditure of approximately US$300 million and net operating expenditure of approximately US$400 million. Guidance is based on an assumed FY26 average exchange rate of AUD:USD 0.65. This announcement was authorised for lodgement by the Company Secretary. Contacts Media contact: Investor Relations contact: Fortescue Media Grant Moriarty E: media@fortescue.com E: investors@fortescue.com P: 1800 134 442 P: +61 8 9230 1647 For personal use only