Fenix Resources (ASX: FEX) focuses on expansion of Mid West assets in Western Australia

Highlights

• Fenix is an ASX-listed iron ore mining and production firm with assets in the Mid Westmining region of Western Australia
• In FY23, the company saw a 21.03% YoY decline in revenue to AUD 196.80 million
• On Monday (23 October 2023), FEX shares closed 4.55% down at AUD 0.21 apiece

Fenix Resources Limited (ASX:FEX) is an Australian company, which is engaged in the mining and production of iron ore. The company’s assets are located in the Mid West mining region of Western Australia. Its 100% owned Iron Ridge iron ore Mine began production in 2020, and presently, the annual production rate is 1.3 million tonnes.

In the financial year 2023 (FY23), the company saw a 21.03% YoY decline in revenue to AUD 196.80 million, a 44.26% YoY fall in operating profit to AUD 38.640 million and a 24.98% fall in cash to AUD 76.30 million.

The period saw acquisitions and integration of Fenix-Newhaul logistics business and acquisition of Mid West iron ore, port and rail assets from Mount Gibson. These acquisitions have been termed as “game-changing” acquisitions by Fenix.

FEX shareholdings

The top 10 shareholders of FEX have a 30.17% stake in the company. Mount Gibson Iron Ltd and Mitchell (Craig Douglas) have the maximum stake in the firm, with a shareholding of nearly 8.64% and 7.20%, respectively.

Recent business update

Through an ASX filing dated 3 October 2023, the company informed that it had signed a binding agreement with Sinosteel Midwest Corporation, which provided the exclusive right to export and mine a maximum of 10 million dmt of iron ores from the Beebyn-W11 iron ore deposit, which lies in the Weld Range.

The transaction is expected to increase the company’s portfolio of iron ore projects with attributable, mineable mineral resources.

Strategic pathway

The company focuses on generating profit from Iron Ridge and production growth through expansion at Iron Ridge, broader mid-west opportunities, and shine iron ore mine opportunities. Moreover, the company intends to diversify its revenue base and unlock Mid West projects through logistics solutions.

Share performance of FEX

FEX shares closed 4.55% down at AUD 0.21 apiece on 23 October 2023. With this, FEX’s share price dropped by 12.50% in the past 12 months and has declined by 34.37% in the last three months.

The 52-week high is AUD 0.325 apiece, recorded on 27 July 2023, while the 52-week low is AUD 0.198 apiece, recorded on 3 November 2022.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 23 October 2023. The reference data in this report has been partly sourced from REFINITIV.

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