Fortescue's annual profit down 41% due to lower iron ore prices

Investing.com — Fortescue (ASX:FMG) said on Tuesday that a fall in iron ore prices had hit profits. However, record-high shipments and low costs highlighted the mining company's operational strength.

The world's fourth-largest iron ore producer announced a net profit of $3.37 billion for the year ending June 30. This figure was down from $5.68 billion a year earlier.

Revenue declined 15% to $15.5 billion as average hematite prices fell 18% to $84.79 per dry metric ton.

Despite this, Fortescue delivered record shipments of 198.4 million tonnes, up 4% year-on-year. It also reduced C1 cash costs to $17.99 per wet metric ton.

The Perth-based mining company has announced a final dividend of fully franked 0.60 Australian dollars per share. This increased the total annual payout to A$1.10 per share.

Fortescue forecasts shipments of 195-205 million tonnes for the 2026 financial year and a cost of haematite C1 of $17.50-$18.50 per tonne.

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