Fenix Resources delivered record iron ore shipments and haulage volumes in the June 2026 quarter, achieving full-year FY26 production within guidance while maintaining cash costs. The company strengthened its balance sheet with a US$44 million funding facility and forged a new freight partnership to reduce shipping costs.
- Record 1.3 million tonnes shipped in June quarter
- Full-year FY26 production of 4.4 million tonnes within guidance
- Group C1 cash costs at lower end of guidance despite diesel price hikes
- US$44 million long-term funding secured with Resource Invest
- New Fenix-Mira Bulk freight partnership aims to cut shipping costs
Record Operational Performance Drives FY26 Milestones
Fenix Resources Ltd (ASX:FEX) capped FY26 with a string of operational records, including a 33% jump in iron ore shipments to 1.3 million wet metric tonnes (wmt) in the June quarter alone. The company’s fully integrated pit-to-port model delivered 4.4 million tonnes for the full year, comfortably within its updated guidance range of 4.2 to 4.8 million tonnes.
Mining output, haulage volumes, and shipping tonnages all hit new highs, with haulage tonnage up 28% quarter-on-quarter to 1.36 million wmt, and shipping volumes reaching a record 4.4 million wmt for FY26. The Beebyn-W11 mine ramped up strongly, doubling shipments from the prior quarter, while the Iron Ridge mine wound down as expected near the end of its economic life.
Cost Discipline Amid Rising Diesel Prices
Despite a 14% rise in cash costs to A$79.9/wmt in the June quarter, driven primarily by diesel price spikes linked to geopolitical tensions, Fenix maintained its full-year Group C1 cash costs at A$73.7/wmt. This figure sits at the lower end of FY26 guidance and underscores the company’s operational efficiency and cost control.
Fenix’s Executive Chairman John Welborn highlighted the strength of the “One Fenix” integrated supply chain model in managing these inflationary pressures, with the company securing diesel swaps covering 30% of FY27 fuel needs to mitigate ongoing price volatility.
Strategic Partnerships and Board Enhancements
During the quarter, Fenix formalised a freight partnership with Mira Bulk Pte Ltd, a global dry bulk vessel operator. This alliance is designed to lower per-tonne shipping costs, improve access to suitable vessels, and provide greater freight market transparency. The partnership also includes profit sharing based on shipped volumes, aligning incentives to drive efficiency.
Complementing this, Fenix secured a US$44 million long-term funding facility with Resource Invest AG, replacing short-term prepayment arrangements and bolstering the balance sheet for ongoing capital investments. The company ended the quarter with a robust cash balance of A$81 million.
Board strength was enhanced with the appointments of Jennifer Morris OAM, a former Fortescue director and Deloitte partner, and Michael Gollschewski, ex-Rio Tinto Pilbara executive and current NRW Holdings COO, bringing deep iron ore sector expertise to governance as Fenix advances its growth plans.
Weld Range Expansion and FY27 Outlook
The Weld Range Definitive Feasibility Study (DFS) remains on track for completion by the end of 2026, underpinning a potential ramp-up to 10 million tonnes per annum (Mtpa). Engineering and technical workstreams are progressing, including mine design optimisation and logistics modelling to maximise project value.
Fenix’s FY27 guidance targets 4.7 to 5.3 million tonnes of iron ore sales at a C1 cash cost between A$70 and A$80 per wet metric tonne FOB Geraldton, representing a 14% volume increase at the midpoint while maintaining cost discipline. Sustaining capital expenditure is expected to remain within A$35 million to A$45 million over FY27 and FY28, excluding mobile fleet and discretionary growth capital.
Approvals for the Beebyn-W10 deposit have been secured, with mining development underway and initial blasting scheduled this quarter, supporting continued production growth and operational continuity beyond the current three-year plan.
Market Conditions and Hedging Strategies
Iron ore prices remained resilient through the quarter, trading mostly between US$100 and US$110 per dry metric tonne, despite a seasonal slowdown in Chinese steel demand. Fenix’s customer base continues to support increased volumes, buoyed by the company’s product quality and supply flexibility.
Freight costs rose sharply in the quarter but have since softened, with the Fenix-Mira Bulk partnership expected to deliver further savings. The company’s hedge book includes 720,000 tonnes of iron ore swaps at A$151.22/t through June 2027, US$120 million in AUD call options to manage currency risk, and diesel swaps covering 18 million litres at favourable prices for FY27.
Bottom Line?
Fenix’s integrated pit-to-port model and strategic partnerships underpin a confident FY27 ramp-up, but fuel price volatility and project execution remain key variables to watch.
Questions in the middle?
- How will Fenix manage diesel fuel risk amid ongoing geopolitical tensions?
- What impact will the Fenix-Mira Bulk partnership have on shipping cost structure and margins?
- Will the Weld Range DFS confirm the economic viability of the 10Mtpa expansion as planned?