Analyst Note
| Jon Mills, CFA |We raise our fair value estimate for no-moat Fortescue Metals to AUD 14.50 per share, up from AUD 14 previously, following transition of coverage to a new analyst. Higher assumed midcycle iron ore prices from 2026 are partially offset by lower near-term iron ore prices, a greater assumed sales discount to the 62% benchmark price on Fortescue’s lower grade ore and delays in Iron Bridge coming online.