Fenix Resources Posts A$54m EBITDA with 2.4Mt Iron Ore Output
Fenix Resources delivered a record 2.4 million tonnes of iron ore in FY25, marking a 64% production jump as it transitioned to a multi-mine operation. Despite iron ore price declines, the company maintained strong cash flow and declared a fully franked dividend, setting ambitious FY26 growth targets.
- Record FY25 iron ore shipments of 2.4 million tonnes, up 64%
- Transitioned from single mine to three mines producing at 4Mtpa target rate
- EBITDA of A$54.3 million and positive operating cash flow of A$71.9 million
- Declared fully franked final dividend of 1 cent per share
- FY26 guidance – 4.0 to 4.4 million tonnes at C1 cash cost of $70-$80/wmt
Record Production and Operational Expansion
Fenix Resources has marked FY25 as a transformative year, achieving record iron ore shipments of 2.4 million tonnes, a 64% increase from the previous year. This surge was driven by the successful transition from a single-mine operation to a multi-mine producer with three active mines, Iron Ridge, Shine, and the newly commissioned Beebyn-W11. Together, these mines are on track to reach a targeted 4 million tonnes per annum production run rate.
The Iron Ridge mine maintained consistent output with improved cash costs, while Shine exceeded expectations by delivering low-cost production. Beebyn-W11, commissioned on time and on budget, began contributing to the group’s production platform in August 2025, underscoring Fenix’s operational execution capabilities.
Financial Resilience Amid Price Pressures
Despite a 15% decline in the average 62% Platts Index iron ore price, falling from US$119.5 to US$101.1 per dry metric tonne, Fenix demonstrated financial resilience. The company reported EBITDA of A$54.3 million and positive operating cash flow of A$71.9 million, enabling it to fully fund growth initiatives while maintaining a robust cash position of A$56.8 million at year-end.
Net profit after tax declined to A$5.4 million from A$33.6 million the previous year, reflecting the impact of lower benchmark prices and increased depreciation from fleet expansion and mine development. Nevertheless, the company’s disciplined hedging strategy, covering 580,000 tonnes at A$154 per tonne through June 2026, and currency protection measures helped buffer revenue volatility.
Strategic Growth and Shareholder Returns
Fenix’s strategic initiatives included increasing its stake in Athena Resources to 37.21%, positioning the company for future opportunities in green iron projects aligned with steel decarbonisation trends. The company also prudently withdrew from a competing acquisition bid to preserve capital for Mid-West growth prospects.
Reflecting confidence in its operational performance and outlook, the Board declared a fully franked final dividend of 1 cent per share, representing approximately A$7.4 million or 137% of FY25 net profit. This dividend payout signals a commitment to rewarding shareholders while retaining flexibility for further expansion.
Outlook for FY26
Looking ahead, Fenix targets iron ore sales of 4.0 to 4.4 million tonnes in FY26 at a C1 cash cost between $70 and $80 per wet metric tonne, reflecting efficiencies from its multi-mine operations. With full pit-to-port control, integrated logistics, and expanded port capacity, the company is well positioned to capitalise on its growth trajectory despite ongoing commodity price uncertainties.
Operational safety remains a priority, with zero lost time injuries recorded across mining and logistics operations, underscoring Fenix’s commitment to sustainable and responsible mining practices.
Bottom Line?
Fenix’s FY25 results set a strong foundation for scaling production and navigating market volatility in FY26.
Questions in the middle?
- How will Fenix manage cost pressures if iron ore prices continue to decline?
- What are the timelines and capital requirements for further expanding the Beebyn-W11 mine?
- How might Fenix’s increased stake in Athena Resources influence its green iron strategy?
