Fenix Resources (FEX) - Q1 FY26 Operational Update
Alpha Insights Equity Research | 17 October 2025
Current Price: A$0.52 | Updated Fair Value: A$1.65 (previously A$1.24)
What Happened
Fenix delivered transformational Q1 FY26 results demonstrating operational excellence whilst advancing strategic partnership with Baowu, the world's largest steel producer. Record quarterly iron ore shipments of 885,000 wet metric tonnes (+17% QoQ, +156% YoY) validated multi-mine integration capabilities, whilst the exclusive 30-year partnership agreement secured minimum 6 million tonnes annual volume commitments with collaboration targets of 8-10 million tonnes. Management advanced Weld Range development with scoping study commencement expected Q2 FY26, targeting the 290-million-tonne resource acquisition that expands total resources to 320 million tonnes and extends mine life to 25+ years.
| Metric | Q1 FY26 | Performance | Industry Context |
|---|---|---|---|
| Shipments | 885k wmt | +17% QoQ, +156% YoY | Record quarterly performance |
| Group C1 Costs | A$75.7/wmt | Guidance midpoint | Competitive positioning maintained |
| Operating Cash | A$43.9m | Strong conversion | ~75% cash conversion rate |
| Partnership Volume | 6Mt minimum | Secured | Unprecedented scale for mid-tier |
| Safety Performance | 0 LTI | All mining operations | Best-in-class operational excellence |
| Resource Base | 320Mt total | +290Mt Weld Range | 25+ year mine life secured |