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Highlights
- The company has introduced a hedging strategy securing 210,000 tonnes of iron ore at favourable prices.
- FEX plans to boost iron ore production capacity set to rise from 1.5Mtpa to 4Mtpa with new projects.
- In FY24, FEX’s revenue was up 31.68% YoY, EBITDA was up 36% YoY, and net profit after tax increased by 15% YoY.
Fenix Resources (ASX:FEX) is an ASX-listed fully integrated mining, logistics, and port services company based in Western Australia. The company operates a vertically integrated business model, and it combines high-quality iron ore production with efficient logistics.
To protect operating margins, Fenix has implemented an effective hedging strategy by securing 210,000 tonnes of iron ore at favourable prices through December 2024. This move safeguards the company against potential price volatility in global iron ore markets.
Fenix plans to expand its iron ore production capacity from 1.5 million tonnes per annum (Mtpa) to 4Mtpa. Key projects driving this expansion include the Shine Iron Ore Mine, set to resume operations, and the new Beebyn-W11 mine, scheduled to commence production in early 2025. These developments are expected to enhance revenue streams and strengthen operating cash flows.
Strategic Investments: Expanding Regional Presence
Fenix has increased its stake in Athena Resources, now holding up to 46.56% ownership, making it Athena’s largest shareholder. This investment grants Fenix significant influence over the Byro Magnetite Project, aligning with its expertise in premium iron ore and Green Steel initiatives. Additionally, Fenix’s acquisition of the Beebynganna Hills Iron Ore Project and nearby tenements expands its regional footprint.
FY24 Financial Highlights
- Revenue: Increased by 31.68% YoY to AUD 259.2 million, driven by higher iron ore sales (1.46 million wet metric tonnes).
- EBITDA: Surged by 36% YoY to AUD 73.2 million, reflecting improved margins.
- Net Profit After Tax: Rose by 15% YoY to AUD 33.6 million.
- Liquidity: Maintained a robust cash position of AUD 77.1 million.
The company’s total available mineral resources now exceed 30 million tonnes.
Appointment of New CFO
Through an ASX update dated 20 January 2025, Fenix announced the appointment of Mr. Chris Hunt as its new Chief Financial Officer, effective 20 January 2025. He carries over 25 years of experience in senior finance roles within the mining sector and brings a wealth of expertise to Fenix. He succeeds Mr. Stuart Ausmeier, who will remain in the role until March 2025 to ensure a smooth transition.
Share performance of FEX
FEX share price dropped by almost 5.26% to AUD 0.27 per share on 22 January 2025. Over the past year, FEX’s share price has increased by nearly 1.89% and in the past six months, it has dropped by approximately 28.95%.
52-week high of FEX is AUD 0.445, recorded on 31 July 2024 and 52-week low is AUD 0.235, recorded on AUD 21 March 2024.
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 22 January 2025. The reference data in this report has been partly sourced from EODHD/Others.
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