Morningstar cuts Fortescue fair value estimate on higher costs, Iron Bridge delays

Fortescue

03/08/2026 20:07

** Morningstar cuts fair value estimate for Australia's Fortescue FMG.AX by 4% to A$15.50 
** Investment research firm says FY2027 shipment outlook is lower, while unit cash cost and capital expenditure forecast is higher than expected
** Adds that 2026 shipments and unit costs were broadly in line with its forecasts
** Says $525 million non-cash after-tax impairment at Iron Bridge, and further delays are disappointing
** "We expect Chinese steel production to soften and seaborne iron ore supply to rise, led by Simandou and Vale," Morningstar says
** Investment research firm also sees "higher energy costs to be temporary as the situation in the Middle East is resolved sooner or later"
** FMG shares down nearly 20% YTD

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))