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Fenix Resources Limited (ASX:FEX) has announced a record-breaking FY26 iron ore shipment volume of 4.4 million tonnes, successfully meeting its full-year guidance while maintaining a competitive C1 cash cost of A$73.7 per wet metric tonne amid operational expansion. The Perth-based miner aims to increase production to 6 million tonnes per annum by FY28 and 10 million tonnes per annum by FY31, leveraging its integrated pit-to-port operations spanning mines in Western Australia's Mid-West region and Geraldton port facilities. This growth has been achieved alongside investments in fleet expansion, new mine development, and progress on the Weld Range Definitive Feasibility Study.
Key Highlights
- Fenix Resources Limited (ASX:FEX) posted record FY26 iron ore sales of 4.4 million tonnes, fulfilling full-year targets
- June Quarter 2026 shipments reached 1.3 million wet metric tonnes, marking the company’s largest quarter ever, with 33% growth over the March Quarter and 62% year-on-year increase
- C1 cash cost FOB Geraldton remained steady at A$73.7 per wet metric tonne for FY26 and A$79.9 per wet metric tonne in the June Quarter, despite rising diesel and freight expenses
- FY27 sales guidance set between 4.7 and 5.3 million tonnes, indicating a 14% midpoint growth over FY26 actuals
- Production targets include 6 million tonnes per annum by FY28 and 10 million tonnes per annum by FY31
- Cash reserves grew 44% to A$81 million as of 30 June 2026, supporting new mine development, fleet expansion, and the Weld Range Definitive Feasibility Study
Record Quarterly Shipments Highlight Operational Growth and Scalability
In the June 2026 quarter, Fenix Resources achieved record shipments of 1.3 million wet metric tonnes, the largest quarterly volume in its history. This represents a 33% increase from the March Quarter and a 62% rise compared to the same quarter in the previous year, demonstrating the company’s rapid operational scaling capability. The annualised run rate exiting the quarter surpassed 5 million tonnes per annum, signaling production capacity well beyond current levels.
Supporting this shipment volume, Fenix loaded 21 vessels during the June quarter, up from 16 in the March Quarter and 13 in the prior corresponding period. The company’s integrated pit-to-port model, including three on-wharf storage sheds at Geraldton Port, proved effective in managing increased throughput. Across FY26, 73 vessels were loaded at Geraldton Port, an 83% increase over FY25, validating the scalability of Fenix’s infrastructure investments.
FY26 Financial Results Confirm Guidance Achievement and Cost Efficiency
Fenix Resources reported FY26 iron ore sales of 4.4 million tonnes, meeting its published guidance and reflecting strong year-on-year growth driven by the ramp-up of mining operations in the Mid-West region. Despite operational expansion and external cost pressures, the company maintained a C1 cash cost FOB Geraldton of A$73.7 per wet metric tonne for the full year.
The company’s financial position strengthened significantly, with cash on hand increasing 44% to A$81 million as of 30 June 2026. This cash growth was achieved while self-funding fleet expansion, new mine development, and advancing the Weld Range Definitive Feasibility Study, providing strategic flexibility for accelerated development and working capital management.
Milestone of 10 Million Tonnes Cumulative Production Achieved in Under 5.5 Years
Since commencing production in December 2020, Fenix Resources has hauled 10 million cumulative tonnes of iron ore in less than 5.5 years. This milestone highlights the effectiveness of the company’s integrated pit-to-port model and operational execution. Shipment volumes have more than tripled in recent quarters as the company scaled its operations.
Owning its shipping and port infrastructure at Geraldton, Fenix has avoided typical logistical constraints faced by independent miners, enabling rapid scaling from development to a 5 million tonne per annum annualised run rate within a compressed timeframe.
FY27 Guidance Indicates Continued Growth Towards Medium-Term Goals
Fenix Resources projects FY27 sales between 4.7 and 5.3 million tonnes, a 14% increase at the midpoint compared to FY26 actuals. This forecast reflects a transitional year focused on operational optimisation and fleet expansion, with confidence in maintaining cost discipline as throughput grows. The June quarter’s annualised run rate already exceeded 5 million tonnes per annum.
The FY27 target bridges current production and the company’s goal of 6 million tonnes per annum by FY28, representing measured growth that supports operational and capital efficiency.
Effective Cost Management Amidst Rising Input Prices
Fenix Resources sustained disciplined C1 cash costs throughout FY26, with a full-year average of A$73.7 per wet metric tonne and a June quarter figure of A$79.9 per wet metric tonne. The slight increase in the quarter was due to temporary input cost pressures rather than operational inefficiencies, demonstrating operational leverage benefits from the integrated model.
This cost control is notable given inflationary pressures on diesel and freight costs during FY26, indicating efficiency gains offsetting input price rises and supporting margin expansion potential.
Long-Term Ambition: 10 Million Tonnes Per Annum by FY31
Fenix Resources aims to reach 10 million tonnes per annum by FY31, with an interim target of 6 million tonnes per annum by FY28. These goals represent more than doubling FY26 production and depend on successful execution of development projects, including the Weld Range Definitive Feasibility Study, which could unlock additional capacity beyond current assets.
Achieving these targets will position Fenix as a significant mid-tier iron ore producer, comparable to established regional operators, with clear milestones providing transparency for investors.
Weld Range Project Progress Supports Medium and Long-Term Growth
The Weld Range project, secured in September 2025 with 290 million tonnes of global mineral resources, is advancing through its Definitive Feasibility Study phase. The December 2025 Scoping Study laid the groundwork for this critical study, which will determine development timing and capital needs.
This project is expected to add production capacity essential for reaching the 10 million tonnes per annum target by FY31. Investors should watch for the Definitive Feasibility Study results, which will clarify capital costs, schedules, and production profiles.
Operational Leverage Evidenced by 300% Production Growth and 18% Cost Reduction
Since starting production in December 2020, Fenix Resources has increased iron ore shipments by 300% while reducing C1 cash costs by 18% per tonne. This demonstrates the operational leverage of the integrated pit-to-port model, with incremental production achieved at lower marginal costs despite capital investments in fleet and mine development.
This track record supports confidence in continued scaling benefits as the company targets 6 million tonnes per annum by FY28 and 10 million tonnes per annum by FY31.
Fleet and Infrastructure Expansion Financed Through Operational Cash Flow
Fenix Resources has financed significant fleet expansion and new mine development entirely from operational cash flows during FY26, while increasing cash reserves by 44% to A$81 million. This self-funding approach underscores the strong cash generation of current operations and offers strategic flexibility without reliance on equity or debt financing.
These capital investments are expected to drive production growth in FY27 and beyond, enhancing haulage capacity and expanding the production base. Maintaining cost discipline alongside cash reserve growth signals robust operational economics, instilling investor confidence in the company’s ability to execute its growth strategy without dilutive capital raises or financial strain.
