Company Interview / Fenix flags high-margin growth after record iron ore shipments

Key points:

Fenix Resources (ASX:FEX) posts record quarterly iron ore production and shipping, boosting cash reservesGrowth supported by new mining assets and an expanded supply chain strategyCompany delivers top-grade iron ore products from the Iron Ridge mineFinancial position described as strong, with expansion plans progressing through feasibility studies

John Welborn of Fenix Resources reports a record-breaking December quarter, highlighting 1.2 million tonnes of iron ore production in just three months—a volume previously achieved annually by the company. Welborn states that 21 vessels were shipped from Geraldton Port during this period, taking advantage of favourable iron ore prices and pushing Fenix’s cash balance to almost $80 million by year-end. The company’s recent growth is attributed to its transition from a single-mine operation to managing three mines, enabled by a deal with Sino Steel, now under Baowu Steel, granting access to 300 million tonnes of resources in the world-class ranges.

Welborn attributes Fenix’s operational scalability to its integrated supply chain—encompassing mining, haulage, and port services—and effective road transport logistics over 500km to Geraldton Port. Since last raising capital in 2020, Welborn notes the company has returned $70 million in fully franked dividends and continues to generate strong cash flows in a stable iron ore market. The company’s Iron Ridge mine is described as delivering Australia’s highest grade output, with both lump and fines products exceeding 63% Fe content.

Looking ahead, Welborn says Fenix Resources (ASX:FEX) remains prepared for potential downturns in iron ore prices, projecting a conservative US$90 tonne benchmark for FY26 while maintaining operations above current market prices. The balance sheet remains robust, with scoping and feasibility studies paving the way for expansion to 10 million tonnes annually.