FENIX RESOURCES LIMITED (FEX)
Share Price Analysis and Chart

04/12/2024

1

Initiation of coverage with Buy

$0.41

60.78%

Bell Potter anticipates Fenix Resources' portfolio of low-capital mining assets and integrated logistics networks will sustain strong cash flows, supporting growth expenditure and shareholder returns.

The analysts note Fenix is unlocking stranded mining assets in Western Australia’s Mid-West region through iron ore mining, bulk commodity haulage via Newhaul Road Logistics, and port services through Newhaul Port Logistics.

Iron ore production is forecast to increase to 4mtpa by FY26 from 1.4mt in FY24, driven by Iron Ridge, Beebyn-W11 (10mt Right to Mine, with first production expected in Q3 FY25), and Shine.

The broker initiates coverage with a Buy rating and a 41c target.

FORECAST
Bell Potter forecasts a full year FY25 dividend of 1.20 cents and EPS of 4.60 cents.
Bell Potter forecasts a full year FY26 dividend of 1.80 cents and EPS of 6.50 cents.

27/11/2024

1

Buy

$0.42

64.71%

Petra Capital highlights the potential to extend mine life at Fenix Resources' Iron Ridge mine through recent exploration and geotechnical drilling.

High-grade intersections below and along strike from the existing pit are expected to support a resource update later this quarter. Near-mine targets identified through aeromagnetic surveys also provide further exploration opportunities, notes the broker.

A production extension at Iron Ridge would complement the group’s iron ore growth strategy, explains the analyst, with additional mines at Shine and Beebyn-W11 coming online in December and March, respectively.

Petra Capital speaks of a potential 6% valuation uplift to 44c per share with an extended mine life at Iron Ridge, but, for now, the 42c target and Buy rating are maintained.

FORECAST
Petra Capital forecasts a full year FY25 dividend of 1.70 cents and EPS of 5.30 cents.
Petra Capital forecasts a full year FY26 dividend of 1.80 cents and EPS of 6.40 cents.