Fenix starts Beebyn Hub ramp-up with a 26.9Mt reserve

Beebyn Hub moves from plan to production

Fenix Resources Ltd (ASX:FEX) has begun the operational handover that will define its next growth phase, with mining underway at Beebyn W10 and the Beebyn Hub’s new 5Mtpa crushing and screening plant commissioned after the September quarter. The transition came with a cost: shipments fell 16% from the June quarter to 1.097 million wet metric tonnes, while cash at bank dropped from A$81.0 million to A$43.2 million after peak investment.

The operating foundation is nevertheless expanding. Fenix mined a record 5.594 million wet metric tonnes of total material during the quarter, including 907,000 tonnes of ore, while haulage of 1.087 million tonnes remained broadly aligned with shipments. The company said all major non-process infrastructure at Beebyn Hub was substantially complete, with the new processing plant expected to ramp up during the December quarter.

Ore reserve provides more than five years of mine life

The quarter’s most consequential asset update was the maiden Beebyn Hub Ore Reserve of 26.9 million tonnes at 60.0% iron, comprising the updated W11 reserve and Stage 1 of W10. The reserve provides more than five years of mine life at current production rates and supports Fenix’s plan to build production towards 6Mtpa by FY28. The figure formalises the resource base behind the company’s

Fenix has maintained its FY27 target of 4.7Mt to 5.3Mt of iron ore sales at C1 cash costs of A$70/wmt to A$80/wmt FOB Geraldton. That guidance now has to absorb a quarter in which costs rose to A$81.8/wmt, compared with A$79.9/wmt in the June quarter. Management attributed the increase to lower shipment volumes during the Beebyn transition, higher diesel costs and disruption at Geraldton Port, and expects costs to return to range in the second half of FY27 as volumes normalise and the new plant reaches full capacity.

Lower prices and port delays pressure quarterly cash flow

Market conditions were less forgiving than the mine development headlines. The average Platts 61% Fe price fell to US$96.9 per dry metric tonne from US$105.3/dmt in the June quarter, while Fenix’s realised CFR price declined to US$89.4/dmt. Geraldton Port also recorded roughly 15 days of surge-related disruption in August, including about 265 hours of delays identified in Fenix’s vessel records. A further A$17.0 million of September shipment proceeds arrived in early October, meaning the quarter-end cash balance did not capture all sales receipts relating to the period.

The cash reduction also reflects A$20 million paid to Sinosteel under the Weld Range Right to Mine agreement, A$23.6 million of capital expenditure and A$14.3 million of capitalised waste movement at Beebyn-W11. Fenix drew A$28.7 million from finance facilities and repaid A$10.1 million relating to its logistics fleet. Its hedge book provided some support, with about A$15 million of in-the-money value at quarter end and 480,000 tonnes of iron ore swaps hedged through June 2027.

Weld Range expansion timetable shifts into 2027

The planned 10Mtpa Weld Range expansion remains a longer-dated proposition. Fenix has pushed completion of its Definitive Feasibility Study into the first half of calendar 2027, partly to assess the implications of the Western Australian Government’s proposed restructuring of the regional below-rail freight network. Financing discussions are continuing alongside the study, with a Final Investment Decision targeted for 2028.

The immediate test is less ambitious but more concrete: whether Beebyn Hub can ramp reliably through the December quarter while Geraldton’s seasonal disruptions ease. Fenix says a new port breakwater is expected to reduce surge-related downtime by up to 80% once completed, but the company’s near-term guidance still depends on plant performance, shipping reliability and costs falling back inside range.