Fenix Resources has reported record iron ore shipments and updated its FY26 guidance, unveiling ambitious plans to expand production to 10 million tonnes per annum by 2031 while extending mine life to 2042.
- Record 1.241 million tonnes iron ore shipments in December quarter
- FY26 production guidance raised to 4.2–4.8 million tonnes
- Three-Year Production Plan targets 15 million tonnes over FY26–FY28
- Weld Range Scoping Study outlines pathway to 10Mtpa and mine life to 2042
- Strong cash position of A$78.9 million and hedging contracts secured
Record Operational Performance
Fenix Resources Ltd (ASX, FEX) has delivered a standout December 2025 quarter, shipping a record 1.241 million wet metric tonnes (wmt) of iron ore. This represents a 40% increase from the previous quarter and more than doubles shipments from the same period last year, underscoring the scalability and efficiency of Fenix’s integrated mining, logistics, and port operations.
The company’s Group C1 cash costs remained steady at A$75.0 per wet metric tonne, comfortably within guidance and down 9% year-on-year. This cost discipline, combined with robust production, has contributed to a strong cash build of A$21.2 million during the quarter, lifting the cash balance to nearly A$79 million.
Strategic Growth and Production Outlook
Fenix updated its FY26 production guidance to between 4.2 and 4.8 million tonnes, reflecting confidence in its operational platform. The recently released Three-Year Production Plan charts a clear trajectory to ramp up production to 6 million tonnes per annum by 2028, with cumulative output of 15 million tonnes over FY26 to FY28.
Key mines contributing to this growth include Iron Ridge, Shine, and Beebyn-W11, all now operating at or near full capacity. Notably, Beebyn-W11 achieved steady-state production in the quarter, shipping 412,000 tonnes, a significant increase from the prior quarter.
Weld Range Expansion and Long-Term Vision
The December quarter also saw the release of the Weld Range Scoping Study, which outlines an ambitious expansion plan to increase production to approximately 10 million tonnes per annum by 2031. This expansion is supported by a mine life extension to 2042, positioning Fenix for sustained long-term growth.
The study highlights compelling economics, including a projected 27% reduction in life-of-mine cash costs to around A$55.4 per tonne and the construction of a 244-kilometre private haul road to improve logistics efficiency. The Definitive Feasibility Study is targeted for completion by mid-2026, with a Final Investment Decision expected in 2028.
Financial and Hedging Position
Fenix has prudently secured hedging contracts covering 1.32 million tonnes of iron ore at an average price of A$151.27 per tonne through to June 2027, alongside US$105 million in Australian dollar call options to mitigate currency risk. These measures provide a degree of revenue certainty amid volatile commodity and currency markets.
The company’s integrated logistics fleet demonstrated increased haulage volumes, supporting the three-mine operation with over 1 million tonnes hauled during the quarter. Port operations at Geraldton also scaled up, shipping 1.241 million tonnes, reflecting operational efficiency and readiness for further growth.
Athena Resources Partnership
Fenix holds a 37.21% stake in Athena Resources Limited, which advanced its Byro Magnetite Project during the quarter. Athena reported a maiden inferred mineral resource estimate of 47 million tonnes at 29% iron, boosting the global Byro project resource by 160%. The appointment of former WA Minister Alannah MacTiernan as a Non-Executive Director further strengthens Athena’s strategic position.
This partnership aligns with Fenix’s broader strategy to participate in emerging green steel markets and decarbonisation trends, complementing its iron ore operations.
Bottom Line?
Fenix’s record quarter and strategic plans set the stage for a transformative growth phase, but the market will watch closely as feasibility studies and investment decisions unfold.
Questions in the middle?
- How will the Definitive Feasibility Study outcomes impact the timeline and scale of the Weld Range expansion?
- What risks could affect the company’s ability to maintain cash costs amid rising capital expenditure?
- How will fluctuations in iron ore prices and currency exchange rates influence Fenix’s hedging strategy effectiveness?