Fenix Resources (ASX: FEX) has released a three-year production plan that lifts FY26 guidance and establishes a pathway to reach up to 6 million tonnes per annum by FY28, consolidating mining at the Weld Range project as the Iron Ridge and Shine operations approach the end of their current mine lives.
The company expects to mine about 15Mt over the period, with output entirely sourced from existing ore reserves and Measured and Indicated mineral resources, and guidance for FY26 increased to between 4.2Mt and 4.8Mt at a C1 cash cost of A$70/t to A$80/t.
The plan builds on the 2.4Mt delivered in FY25 and shifts production toward the Beebyn Hub as Iron Ridge and Shine wind down.
Mining at Iron Ridge is scheduled to conclude during 2026, with stockpiles processed into FY27 as ore reserves are exhausted, while Stage 1 mining at Shine is expected to finish during 2026, with final production delivered in FY27 and no Stage 2 output included in the plan.
The Beebyn-W11 mine is set to increase production from 1.5Mtpa to 3Mtpa in FY27, supported by the planned commencement of Beebyn-W10 subject to approvals Fenix expects to receive in 2026.
Production Outlook and Operational Framework
Fenix expects FY27 production of between 4.7Mt and 5.3Mt tonnes before reaching between 5.4Mt and 6Mt in FY28.
The company will continue to produce lump and fines products at an average targeted grade of 61% iron with minimal impurities consistent with benchmark specifications.
Existing mining and logistics infrastructure underpin the plan, including crushing capacity at each site, Newhaul Road Logistics haulage, and more than 400,000t of storage at Geraldton Port.
Stockpiles at Iron Ridge and Shine will support continuity of production while the Beebyn Hub ramps up to a projected 6Mtpa crushing capacity by FY28.
Capital Requirements and Cost Profile
Sustaining capital over the three-year period is forecast at between $35 million and $45m, excluding mobile fleet purchases funded through existing finance facilities.
The estimate includes all mining, roadworks, and logistics infrastructure required to deliver the plan, with funding to be sourced from cash reserves, operational cash flow, and available facilities.
No cost guidance has been provided for FY27 or FY28, although Fenix anticipates stable operating costs over the period based on similar mineralogy and haulage characteristics between Iron Ridge and the Beebyn Hub.
Executive chair John Welborn said Fenix has a clear plan to build a larger and more profitable business as it consolidates operations and grows production.
“The 3-Year Plan confirms our near-term growth ambitions, and will provide a strong revenue base for Fenix to become a larger, more profitable, and sustainable iron ore producer,” he said.
Mr Welborn said the company remains focused on maximising the use of its existing Mid-West infrastructure while advancing feasibility work to support longer-term expansion.
Exclusive Right-to Mine Agreement
The company secured a 30-year exclusive right-to-mine agreement at Weld Range in September 2025, giving access to a global Mineral Resource Estimate of 290Mt at 56.8% iron.
A Scoping Study is underway and scheduled for completion in the December quarter, with a feasibility study to follow by June 2026, and Fenix is assessing opportunities beyond the current plan including a second processing hub at Madoonga to support additional production growth.
The company is also evaluating strategies to reduce operating costs, including a proposed long-distance private haul road and potential transhipment options from Geraldton Port.
Scheduled ore production over the three years comprises about 60% Ore Reserves and 40% Measured and Indicated Mineral Resources, with no Inferred material included.
Fenix believes the plan is a high-confidence, executable strategy that aligns resource availability with existing processing and logistics capacity.
