• Fortescue Ltd's net profit after tax attributable to equity holders decreased to US$1.553 billion for the half year ended December 31, 2024.
• Earnings per share were 50.5 US cents.
• Record shipments of 97Mt of iron ore were achieved, including 94Mt of Hematite and 3Mt of Magnetite.
• Hematite average revenue decreased to US$85/dmt.
• Hematite C1 costs increased to US$19.17/wmt due to inflationary pressures and mine plan-led cost escalation.
• Underlying EBITDA was US$3.641 billion.
• The company declared a fully franked interim dividend of 50 Australian cents per share, payable in March 2025.
• Fortescue made an offer to acquire Red Hawk Mining at A$1.20 per share and commenced compulsory acquisition of remaining shares.

Score: 6

Explanation: The report presents mixed results, with record shipments offset by decreased profits and increased costs. The company's commitment to sustainability and future growth initiatives provides a positive outlook, but current financial performance is weaker than the previous period.

• Fortescue achieved record iron ore shipments of 97Mt in H1 FY25.
• The company's net profit after tax was US$1.553 billion.
• Hematite average revenue was US$85/dmt.
• Hematite C1 costs increased to US$19.17/wmt.
• Fortescue declared a fully franked interim dividend of 50 Australian cents per share.
• Fortescue is progressing with its decarbonisation efforts, including a US$2.8 billion green equipment partnership with Liebherr.
• Fortescue commenced compulsory acquisition of Red Hawk Mining after acquiring over 90% of shares.

• Record iron ore shipments of 97Mt were achieved.
• Fortescue is actively pursuing decarbonisation initiatives, including partnerships and investments in green technology.
• The company is expanding its product mix with the Iron Bridge ramp up, producing 3Mt of Iron Bridge Concentrate.
• Fortescue is committed to diversity and inclusion, with a focus on increasing female employment rates and First Nations engagement.
• The company is expanding its global presence with the Belinga Iron Ore Project in Gabon.

• Net profit after tax decreased compared to the prior period.
• Hematite average revenue decreased to US$85/dmt.
• Hematite C1 costs increased to US$19.17/wmt due to inflationary pressures and mine plan-led cost escalation.
• Underlying EBITDA decreased compared to the prior period.

• Inflationary pressures and labour cost increases pose a risk to C1 costs.
• Market volatility and evolving industry structures require adaptation of commercial strategies.
• Technical challenges related to decarbonisation exist, including technology availability and maturity.
• The company faces potential risks related to climate change, supply chain disruptions, and regulatory changes.

Fortescue aims to have its Australian iron ore operations running on green energy by 2030 and achieve Real Zero Scope 1 and 2 terrestrial emissions, with a net zero Scope 3 emissions target by 2040.

The report highlights Fortescue's efforts to decarbonise its operations and provide green energy solutions, aligning with the growing global focus on sustainability and the transition to a low-carbon economy.

• Fortescue's sustainability performance is recognized through inclusion in the Dow Jones Sustainability Indices and the FTSE4Good index, indicating a strong commitment to ESG factors compared to industry peers.
• The company's focus on decarbonisation and green energy projects positions it as a leader in the mining industry's transition to sustainable practices, potentially setting a benchmark for competitors.
• Fortescue's efforts in First Nations engagement, including employment and business development opportunities, demonstrate a commitment to social responsibility that aligns with global best practices.

• Shareholders will receive a lower interim dividend compared to the previous year.
• Employees may benefit from the company's investments in decarbonisation and green energy projects, creating new job opportunities.
• Customers will have access to a broader product suite, including high-grade magnetite concentrate.
• Suppliers may benefit from Fortescue's ongoing operations and capital expenditure.
• Creditors are secured by Fortescue's low-cost debt structure and investment-grade terms.

• Continue the ramp-up of the Iron Bridge project.
• Progress with decarbonisation initiatives, including the deployment of zero-emission equipment.
• Advance exploration and studies for the Belinga Iron Ore Project in Gabon.
• Integrate the acquired Red Hawk Mining assets.

• 2003: Fortescue founding year
• 2006: Inception of VTEC program
• 2008: Date since which more than two billion tonnes of iron ore shipped
• August 1, 2024: Noel Pearson appointed as Director
• September 2024: Fortescue released an updated Climate Transition Plan
• September 2024: Fortescue paid a fully franked final dividend of 89 Australian cents per share for the financial year ended 30 June 2024
• December 31, 2024: End of the half year reporting period
• January 2025: Drilling commenced late in the year at the Myall Joint Venture
• January 28, 2025: Fortescue made offers to acquire Red Hawk Mining
• February 12, 2025: Company announced that Mr Noel Quinn will be appointed to the Fortescue Board as a Non-Executive Director, subject to completion of regulatory procedures.
• February 18, 2025: FMG Pilbara Pty Ltd commenced the compulsory acquisition process for all remaining fully paid Red Hawk ordinary shares.
• February 20, 2025: Date of Directors' Report and declaration of interim dividend
• March 2025: Payment date for the fully franked interim dividend of 50 Australian cents per share
• July 2025: Extension date for the development of a Safety and Duress App