Fenix Resources Hits Record 1.3Mt Shipments, Raises FY27 Production Target
Fenix Resources delivered a record 1.3 million tonnes shipment in June quarter, meeting FY26 guidance with 4.4 million tonnes and setting a 14% higher FY27 target while holding costs steady.
- Record 1.3Mt iron ore shipped in June quarter
- FY26 production guidance achieved at 4.4Mt
- Cash balance of A$81 million after capex and repayments
- FY27 production guidance raised to 4.7–5.3Mt
- C1 cash costs maintained at A$70–80/wmt FOB Geraldton
Record Quarter Caps Off FY26 Production Target
Fenix Resources Ltd (ASX:FEX) closed FY26 on a high note, shipping a record 1.3 million wet metric tonnes (wmt) of iron ore in the June 2026 quarter, a 33% increase on the March quarter. This surge helped the company meet its revised FY26 guidance of 4.2 to 4.8 million tonnes, with total shipments reaching 4.4 million tonnes. The milestone underscores the scalability of Fenix’s integrated pit-to-port operations amid ongoing cost pressures from diesel prices and freight rates.
Operational Efficiencies Drive Volume and Cost Control
The record shipments were supported by optimised mining at Fenix’s Mid-West iron ore assets, efficient haulage through its 100% owned logistics fleet, and streamlined port operations at Geraldton, leveraging dedicated on-wharf storage. Despite inflationary headwinds and volatility from the US-Iran conflict affecting freight costs, the company maintained C1 cash costs within the guidance band of A$70 to A$80 per wet metric tonne FOB Geraldton, matching FY26 levels.
Fenix’s cash position remained robust at A$81.0 million as at 30 June 2026, slightly down from A$86.3 million at the end of March but reflecting capital expenditure, debt repayments, and tax payments. This cash balance marks a 42.6% increase from A$56.8 million a year earlier, funding key projects including the Beebyn-W11 mine and infrastructure upgrades.
FY27 Guidance Raised Amid Steady Cost Outlook
Looking ahead, Fenix targets a 14% increase in iron ore sales for FY27, aiming for 4.7 to 5.3 million tonnes while maintaining the C1 cash cost guidance at A$70 to A$80 per wet metric tonne FOB Geraldton. This ambitious volume growth reflects confidence in the company’s fully integrated mining, logistics, and port model operating above a 5 million tonnes annualised rate.
Alongside operational delivery, Fenix is advancing the Weld Range Project Definitive Feasibility Study, with a final investment decision expected in 2028. The project promises a pathway to a 10Mtpa operation and potential cost reductions to around A$55/wmt, underpinning longer-term growth beyond FY28.
Integrated Model Supports Resilience and Growth
Fenix’s vertically integrated structure, from mining through road haulage to port logistics, has been central to its ability to navigate cost pressures and ramp production efficiently. The company’s strategic alliances, including partnerships with local Indigenous communities and service providers, also reinforce its operational and social licence to operate in Western Australia’s Mid-West region.
With the June 2026 Quarterly Activities Report due in the second half of July, investors will be watching for detailed financial metrics and capital expenditure breakdowns that will further illuminate Fenix’s operational momentum and funding status as it scales towards its 10Mtpa ambition.
Bottom Line?
Fenix’s record shipments and steady cost control set a solid base for FY27 growth, but execution on the Weld Range feasibility will be pivotal for sustaining momentum beyond the near term.
Questions in the middle?
- How will Fenix manage inflationary pressures if diesel and freight costs continue rising?
- What operational risks could affect the ramp-up to the 5.3Mt upper guidance in FY27?
- When will the Weld Range Project feasibility study clarify the timeline and capital requirements for the 10Mtpa expansion?
