This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) Aug. 28, 2024-- Fortescue Ltd. 's strong balance sheet, low-cost operations, and prudent capital allocation have created ample headroom within the current rating (BB+/Stable/--). The Australia-based iron ore miner's reported net debt of US$0.5 billion and low cash cost position it well to manage weaker iron ore prices if they fall below our current assumption of US$100 per metric ton (mt) for calendar year (CY) 2025 and US$90 per mt for CY2026. We consider Fortescue's balance sheet headroom provides capacity to meet (1) increasing capital expenditure (capex) associated with an ambitious decarbonization objective for its metals business (of net zero scope 1 and 2 emissions by 2030); and
