Fenix Resources delivered a transformational December quarter, setting the stage to triple its iron ore production in 2025, backed by record shipments and a 177% increase in mineral resources at Iron Ridge.
- Record ten shipments totaling 593,580 wet metric tonnes in December quarter
- Iron Ridge mineral resource estimate surged 177% to 13.4 million tonnes at 64.9% Fe
- Shine Iron Ore Mine commissioned ahead of schedule, contributing to production ramp-up
- Beebyn-W11 project progressing with mining contractor selected and approvals underway
- Hedge book expanded to 660,000 tonnes at an average fixed price of A$154.54 per tonne
A Quarter of Milestones and Momentum
Fenix Resources (ASX: FEX) has reported a landmark December 2024 quarter that not only delivered record iron ore shipments but also laid a robust foundation for a tripling of its annual production rate in 2025. The company shipped a total of 593,580 wet metric tonnes (wmt) across ten shipments, split between its flagship Iron Ridge mine and the newly commissioned Shine Iron Ore Mine.
The December quarter was transformational, marked by the successful commissioning of Shine ahead of schedule and on budget, and significant progress on the Beebyn-W11 project, which is expected to commence mining operations later this year. These developments underpin Fenix’s confidence in reaching a 4 million tonnes per annum (Mtpa) production rate during 2025, up from the current annualized rate of approximately 2.5 Mtpa.
Iron Ridge: Resource Growth and Operational Excellence
Iron Ridge remains the cornerstone of Fenix’s operations, delivering consistent production with C1 cash costs maintained at A$79.9 per wet metric tonne (wmt). The company’s drilling program culminated in a substantial 177% increase in the mineral resource estimate to 13.4 million tonnes at an average grade of 64.9% iron (Fe), significantly extending the mine’s life and enhancing its economic potential.
Fenix’s premium-quality ore from Iron Ridge commanded an average CFR price of US$106 per dry metric tonne (dmt), outperforming the Platts 62% Fe index by 3%. The resulting operating margin of A$49 per dmt underscores the mine’s profitability and operational efficiency, even amid inflationary pressures.
Shine Mine: Early Success and Positive Cashflow
The Shine Iron Ore Mine, which commenced mining in August 2024 and crushing in October, shipped 240,788 wmt during the quarter. Initial C1 cash costs were higher at A$86.9/wmt due to planned waste stripping and the sale of low-grade stockpiles inherited from the previous operator. However, Fenix anticipates these costs will average A$67.50/wmt as production stabilizes and ore grade improves.
Despite the early-stage challenges, Shine achieved a positive operating margin of A$4 per dmt and secured a 12-month exclusive marketing agreement with Swiss-based EP Resources Limited, signaling strong market confidence in the project’s product quality and pricing potential.
Beebyn-W11 and Strategic Expansion
Fenix is advancing its third iron ore mine, Beebyn-W11, with key approvals secured and MACA Limited appointed as the preferred mining contractor. Final mining approval is expected imminently, positioning the project to contribute to the company’s production growth in 2025.
Additionally, Fenix expanded its regional footprint through strategic acquisitions of the Beebynganna Hills Iron Ore Project and the Beebyn North exploration tenement. These assets offer promising near-mine exploration opportunities, with historical assays indicating hematite grades up to 65% Fe.
Integrated Logistics and Financial Strength
Fenix’s vertically integrated logistics operations continue to scale efficiently. Newhaul Road Logistics achieved a haulage milestone of 6 million tonnes and completed infrastructure upgrades at the Ruvidini Inland Port Terminal, which is set to commence operations in mid-2025. Port logistics enhancements at Geraldton have improved unloading efficiency and increased storage capacity, reducing costs and ore degradation risks.
Financially, Fenix ended the quarter with A$56.9 million in cash after investing over A$30 million in capital projects, tax, royalties, and debt repayments. The company’s hedge book now covers 660,000 tonnes at an average fixed price of A$154.54 per tonne, providing price certainty amid volatile iron ore markets.
Fenix also increased its stake in Athena Resources to 28.97%, aligning with its strategy to participate in the emerging green steel market through the Byro Magnetite Project.
Looking Ahead
With a strengthened resource base, expanding production capacity, and integrated logistics infrastructure, Fenix Resources is well-positioned for growth in 2025. The company’s focus on operational excellence, strategic acquisitions, and market diversification will be critical as it navigates iron ore price fluctuations and executes its ambitious expansion plans.
Bottom Line?
Fenix’s December quarter sets a powerful precedent, but the market will watch closely as it scales production and integrates new assets in 2025.
Questions in the middle?
- How will iron ore price volatility impact Fenix’s profitability given its hedging strategy?
- What are the timelines and risks associated with the Beebyn-W11 project’s final approvals and ramp-up?
- Can Fenix sustain or improve cash costs at Shine as production transitions from low-grade stockpiles to higher-grade ore?