Cost pressures are building, with the haematite C1 unit cost rising 6% in the quarter, chiefly due to higher diesel prices. For FY26, the cost came in at US$18.74/wet metric tonne (wmt), a touch outside the company’s guidance range of US$17.50–18.50/wmt. All good news, as anticipated, but…GuidanceFortescue provided FY27 guidance for shipments of 197-207Mt, including 11-14Mt from Iron Bridge, little changed from FY26. FY27 guidance does not reflect the decarbonisation benefits Macquarie had expected, with costs tracking 10% higher than forecast on higher diesel costs. Macquarie suggests it is hard to see where Fortescue would favour Iron Bridge over lower-grade haematite, in absence of severe discounting of lower grade Fe products.