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Fenix Resources Ltd (ASX:FEX) reported outstanding operational results for the financial year ended 30 June 2026, delivering record iron ore production through its integrated pit-to-port operations. The company shipped 4.4 million tonnes of iron ore in FY26, marking an 83% increase over the previous year, while maintaining Group C1 cash costs at A$73.7 per wet metric tonne, positioned at the lower end of guidance. This robust performance underpins Fenix’s three-year production strategy and sets the stage for FY27 guidance of 4.7 to 5.3 million tonnes.
Key Highlights
- Fenix Resources Ltd (ASX:FEX) operates an integrated iron ore mining, haulage, and shipping business in Western Australia's mid-west region.
- FY26 saw record iron ore shipments of 4.4 million tonnes, including 21 vessels dispatched in the June quarter alone.
- Group C1 cash costs for FY26 stood at A$73.7 per wet metric tonne, at the lower guidance boundary, despite a June quarter rise to A$79.9/wmt due to increased diesel prices amid the Iran-US conflict.
- FY27 production guidance is set between 4.7 and 5.3 million tonnes with C1 cash costs projected at A$70 to A$80 per wet metric tonne; the Weld Range Definitive Feasibility Study remains on track for completion in H2 2026.
- Leadership strengthened with board appointments of Jennifer Morris OAM and Michael Gollschewski; secured a new US$44 million long-term funding facility.
- Strong cash reserves of A$81.0 million as of 30 June 2026; hedging positions cover 720,000 tonnes of iron ore through June 2027.
June Quarter Sets New Records, Driving FY26 Production Milestone
During the June 2026 quarter, Fenix Resources achieved unprecedented operational milestones. The company completed 21 shipments totaling 1,299,000 wet metric tonnes, a 33% increase compared to the previous corresponding quarter. This quarterly record contributed to FY26 total shipments of 4,399,000 wet metric tonnes, reflecting an 83% rise from FY25’s 2,404,000 wet metric tonnes.
Fenix’s fully integrated pit-to-port model delivered record outputs across mining, haulage, and shipping. Material mined reached all-time highs; haulage logistics moved 1,364,000 wet metric tonnes in the June quarter, up 28% from March 2026; and shipping operations recorded peak vessel loads, including a record 69,125 wet metric tonnes on the Nord Draco vessel. These results enabled Fenix to meet its FY26 production guidance range of 4.2 to 4.8 million tonnes with actual production of 4.4 million tonnes.
Beebyn-W11 Mine and Hub Expansion Propel Shipment Growth
The commissioning of the Beebyn-W11 mine and establishment of the Beebyn Hub were key drivers of shipment growth in FY26. Beebyn-W11 achieved 12 shipments totaling 742,000 wet metric tonnes in the June quarter alone, more than doubling the 362,000 wet metric tonnes shipped in the March quarter, highlighting successful ramp-up. For FY26, Beebyn-W11 shipped 1,631,700 wet metric tonnes as a newly launched operational unit.
Approvals for the Beebyn W10 deposit have been secured, with mine development underway and first blast activities scheduled in the current quarter. The Beebyn Hub expansion is central to Fenix’s strategy to increase production capacity, supporting the long-term target of 10 million tonnes per annum outlined in the Weld Range Definitive Feasibility Study. This hub approach consolidates operations and leverages existing infrastructure to enhance efficiency across the supply chain.
FY26 Cost Efficiency Achieved Despite Elevated Fuel Prices
Fenix delivered FY26 Group C1 cash costs of A$73.7 per wet metric tonne, at the lower end of guidance, an achievement management describes as exceptional. The June quarter’s higher cost of A$79.9 per wet metric tonne was influenced by elevated diesel prices linked to the Iran-US conflict, as communicated earlier. Despite this, the full-year cost performance reflects the operational efficiency of Fenix’s integrated business and the benefits of the newly implemented "One Fenix" management structure.
To manage fuel cost volatility, Fenix secured 18 million litres of Singapore Gasoil 10ppm diesel for FY27 at prices between US$0.6874 and US$0.7876 per litre. The company also established a commodity hedge covering 720,000 tonnes of iron ore at A$151.22 per tonne through June 2027, alongside USD120 million in Australian dollar call options through June 2028 at an average exercise price of AUD:USD 0.7491. These measures provide protection against commodity and currency fluctuations.
FY27 Production Guidance Targets 14% Growth with Stable Costs
Fenix’s FY27 guidance projects iron ore sales between 4.7 and 5.3 million tonnes at C1 cash costs of A$70 to A$80 per wet metric tonne FOB Geraldton. The midpoint reflects a 14% volume increase over FY26, maintaining cost discipline consistent with prior years. This aligns with the company’s three-year plan spanning FY26 to FY28, underscoring confidence in operational capabilities.
Growth is expected from continued ramp-up at Beebyn-W11, contributions from Beebyn W10 within the Beebyn Hub, and sustained output from the Shine mine, which saw an 80% production increase from March to June quarter. The guidance range accounts for operational variability and external factors while the Weld Range Definitive Feasibility Study progresses.
Leadership Enhancements and US$44 Million Funding Facility
In the June quarter, Fenix appointed Jennifer Morris OAM and Michael Gollschewski to its board, enhancing governance as the company advances its growth strategy and operational expansion. These appointments reflect a commitment to strong leadership during a period of significant capital investment.
Additionally, Fenix secured a US$44 million long-term funding facility to support capital expenditures for the Beebyn Hub and other growth initiatives. This complements a strong cash balance of A$81.0 million as of 30 June 2026, a slight decrease from A$86.3 million at 31 March 2026 due to ongoing development spending and working capital needs.
"One Fenix" Model Integrates Operations to Boost Efficiency
Fenix adopted the "One Fenix" integrated management model in the June quarter, consolidating mining, logistics, and port operations under unified leadership. This restructure aims to enhance operational efficiency by eliminating silos and accelerating decision-making and resource allocation. The model’s implementation coincided with record operational achievements, indicating early benefits.
This approach leverages Fenix’s competitive advantage as a fully integrated iron ore producer in Western Australia’s mid-west, optimizing ore flow, improving asset utilization, and reducing inefficiencies. Evidence includes record haulage of 1,364,000 wet metric tonnes and shipping of 1,299,000 wet metric tonnes across 21 vessels in the June quarter.
Weld Range DFS to Define Path to 10 Million Tonnes Per Annum
The Weld Range Definitive Feasibility Study (DFS) is on schedule for completion in the second half of 2026. It will outline the technical and financial roadmap to achieve a long-term production rate of 10 million tonnes per annum, more than doubling FY27 guidance midpoint volumes. The DFS includes the Beebyn Hub development and infrastructure plans needed for this expansion.
Concurrent project workstreams supporting the DFS include technical studies, infrastructure planning, environmental assessments, and stakeholder engagement. The DFS completion will provide detailed capital, production timelines, and return expectations, serving as a critical milestone for investors monitoring Fenix’s strategic growth.
Safety Improvements and Shipping Partnership Reduce Costs
Safety performance improved in the June quarter, with the Total Recordable Injury Frequency Rate falling to 4.9 at 30 June 2026, a 16% reduction from 5.8 at 31 March 2026. The company recorded zero Lost Time Injuries during the quarter, demonstrating effective safety management despite record production levels. This suggests the "One Fenix" integration has maintained or enhanced safety standards.
Fenix also formed a freight partnership with Mira Bulk during the quarter to reduce shipping costs amid volatile international freight and fuel prices. While specific savings were not disclosed, this strategic alliance aligns with management’s focus on operational cost control as part of value creation.
Mine Portfolio Reflects Growth and Transition Phases
FY26 production contributions varied across Fenix’s mine portfolio, reflecting differing maturity stages. Beebyn-W11, the newest asset, shipped 1,631,700 wet metric tonnes, becoming a major contributor. The Shine mine produced 1,562,800 wet metric tonnes, up 47% year-on-year and 81% from March to June quarter, indicating ongoing growth. Iron Ridge shipped 1,204,800 wet metric tonnes, down 10% year-on-year, nearing end-of-life with only 124,000 tonnes shipped in the June quarter.
This portfolio mix highlights reliance on Beebyn-W11’s ramp-up and Shine’s growth to offset Iron Ridge’s decline. The three-mine strategy provides diversification while expanding the Beebyn Hub. Transitioning from Iron Ridge to higher-margin assets like Beebyn-W11 is a key operational shift within the FY26 to FY28 plan.
Strong Financial Position and Hedging Provide Stability Amid Market Uncertainty
Fenix ended FY26 with a solid cash balance of A$81.0 million, supporting capital investments and operational flexibility despite ongoing development costs at Beebyn Hub and Beebyn-W11. The cash position decreased from A$86.3 million at 31 March 2026, reflecting capital expenditure and working capital adjustments.
Robust hedging strategies mitigate exposure to commodity and currency volatility. The iron ore hedge covers 720,000 tonnes at A$151.22 per tonne through June 2027, while USD120 million in Australian dollar call options through June 2028 at an average exercise price of AUD:USD 0.7491 protect against currency fluctuations. Combined with secured diesel fuel contracts, these measures provide medium-term financial certainty.
