The Fortescue Ltd (ASX: FMG) share price is edging higher on Thursday morning.
At the time of writing, the iron ore giant's shares are up 1% to $20.60.
This follows the release of the miner's first quarter update before the market open.
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Fortescue share price edge higher on quarterly update
Investors have been buying the company's shares after it reported record shipments during the three months.
According to the release, total iron ore shipments came in at a record-breaking 49.7 million tonnes (Mt) in the first quarter of FY 2026. This is 4% higher than the prior corresponding period thanks largely to a 2.1Mt contribution from the Iron Bridge operation.
One negative, though, was a sharp increase in Fortescue's hematite C1 unit cost. It came in at US$18.17 per wet metric tonne (wmt) for the three months, which is up 12% from US$16.29 per wmt in the fourth quarter of FY 2025. However, it is down 10% year on year.
Fortescue commanded a hematite average price of US$89 per dry metric tonne (dmt) for the quarter. This means it realised 87% of the average Platts 62% CFR Index.
Over at Iron Bridge, its concentrate pulled in US$121 per dmt for the three months. This represents 103% of the average Platts 65% CFR Index and 118% of the average Platts 62% CFR Index.
In light of this, the company ended the period with cash of US$4.6 billion and net debt of US$1.9 billion. This includes the payment of the FY 2025 final dividend of US$1.2 billion and capital expenditure of US$908 million in the quarter.
Commenting on the quarter, Fortescue Metals and Operations CEO, Dino Otranto, said:
Fortescue has delivered a strong start to FY26, achieving record first quarter shipments of 49.7Mt, up four per cent on the prior year. We reached important milestones this quarter, including the successful syndication of a Renminbi-denominated term loan and the establishment of new global partnerships that will help drive our profitable decarbonisation. We're continuing to see delivery of this on the ground, with 10 electric excavators in operation and construction of our 190MW solar farm at Cloudbreak now more than one third complete.
We've also started to implement our revised Hematite life of mine plan, underpinned by the inclusion of the recently acquired Blacksmith Project. The plan optimises material movement and orebody use, ensuring Fortescue remains positioned as a low-cost, capital-efficient operator, maximising value across our operations.
Outlook
Thanks to its strong start to the financial year, management has been able to reaffirm its guidance for FY 2026.
It continues to forecast iron ore shipments of 195Mt to 205Mt and C1 unit costs for hematite of US$17.50 to US$18.50 per wmt.
The company also expects to spend US$3.3 billion to US$4 billion on metals capital expenditure and US$400 million on energy capital expenditure.
