Fenix Resources Accelerates to 4Mtpa with Beebyn-W11 Mine Launch

A Defining Quarter for Fenix Resources

Fenix Resources Limited (ASX, FEX) has delivered a landmark June 2025 quarter, highlighted by the commencement of mining at its Beebyn-W11 operation. This new mine joins the established Iron Ridge and Shine mines, collectively driving the company towards its ambitious target of producing 4 million tonnes of iron ore annually by the end of 2025. The milestone underscores Fenix’s evolution into a diversified, integrated mining and logistics operator in Western Australia's Mid-West region.

During the quarter, Fenix achieved record iron ore shipments totaling 760,000 wet metric tonnes (wmt) across thirteen vessels, a testament to the operational strength of its integrated pit-to-port business model. The company’s logistics and port operations at Geraldton have efficiently handled the increased volumes, reinforcing Fenix’s capacity to scale production sustainably.

Cost Efficiency and Operational Excellence

Cost management remains a key pillar of Fenix’s strategy. The Iron Ridge mine reported a reduction in C1 cash costs to A$71.6 per wmt, down from A$73.8 in the previous quarter, while Shine’s costs fell significantly to A$51.8 per wmt from A$77.9. These improvements reflect enhanced operational efficiencies and higher sales volumes, including strong demand for Shine’s low-grade product, which has proven commercially viable.

Beebyn-W11 mining activities commenced in June 2025, with infrastructure developments such as a private haul road completed in July and an accommodation village expected to be fully operational by August. The first shipment from Beebyn-W11 is on track for the September quarter, with a production target of 1.5Mtpa at a forecast C1 cost of A$77.5 per wmt. This addition not only diversifies Fenix’s asset base but also strengthens its operational resilience.

Strategic Growth and Financial Strength

Fenix’s financial position remains robust, closing the quarter with A$56.8 million in cash, bolstered by strong operational cash flow of A$25.5 million (excluding hedging). The company has expanded its debt facilities with Westpac to fund fleet expansion and property developments, supporting its growth trajectory without compromising balance sheet strength.

On the strategic front, Fenix increased its shareholding in Athena Resources Limited to 37.21% and entered a collaboration to develop a Mid-West Green Iron Project. This initiative aims to produce direct reduction iron ore products using ultra-high-grade local ores and green hydrogen, positioning Fenix at the forefront of emerging green steel markets. Additionally, Fenix opted not to match a takeover bid for CZR Resources Limited, signaling a disciplined capital allocation approach focused on organic growth within its existing footprint.

Looking Ahead

With three mines now operational and a clear path to ramp up production, Fenix Resources is poised to consolidate its position as a leading iron ore producer in the Mid-West. The company’s integrated mining, logistics, and port infrastructure, combined with strategic investments in green iron initiatives, set the stage for sustained growth and market relevance amid evolving industry dynamics.