FENIX RESOURCES LIMITED (FEX)
Share Price Analysis and Chart

02/09/2025

1

Buy

$0.65

62.50%

Fenix Resources has entered a binding agreement with Sinosteel Midwest Corporation (SMC) for the exclusive rights to mine and export a 290mt iron ore resource over thirty years at SMC's Weld Range Iron Ore project, 350km northwest of Geraldton Port and adjacent to Iron Ridge mine.

The deal will boost Fenix's iron ore production to over 10mt p.a. from Bell Potter's current estimate of 4.4mt p.a. and utilise the latent port capacity, while reducing average group C1 unit costs, guided at $70-$80/t for FY26.

The analyst likes the portfolio expansion of Fenix's low capital mining assets, which can leverage its network and boost shareholder returns.

Buy rated. Target rises to 65c from 40c.

FORECAST
Bell Potter forecasts a full year FY26 dividend of 1.50 cents and EPS of 8.80 cents.
Bell Potter forecasts a full year FY27 dividend of 0.80 cents and EPS of 6.10 cents.

09/09/2025

1

Buy

$1.03

157.50%

Fenix Resources has entered into a Right to Mine Agreement (RTMA) with Sinosteel, securing 290Mt of hematite direct shipping ore (DSO) surrounding its existing Weld Range operations.

Petra Capital describes this as a transformational RTMA, quadrupling scale and extending mine life significantly, and positioning the company as the premier independent hematite DSO play on the ASX.

Total consideration is -$60m cash payable over 24 months, production royalty of $4-5/dmt, and profit share royalty. The broker expects the cash portion to be funded from cash reserves and operational cash flow from existing operations.

Buy. Target rises to $1.03 from $0.40 after assigning a risk-weighted valuation of $885m for the Weld Range RTMA.

FORECAST
Petra Capital forecasts a full year FY26 dividend of 1.00 cents and EPS of 4.20 cents.
Petra Capital forecasts a full year FY27 dividend of 1.00 cents and EPS of 1.70 cents.