Australian iron ore producer Fenix Resources has maintained its sales guidance for the 2026-27 financial year at 4.7-5.3 million mt, despite lower September-quarter shipments and higher operating costs, as it advances production at its Beebyn Hub in Western Australia, according to its latest quarterly report.
The company shipped 1.10 million wet metric tons (wmt) across 18 vessels during the quarter, down 16 percent quarter on quarter but up 24 percent year on year. Shipments were affected by the transition to Beebyn Hub and seasonal disruptions at Geraldton Port.
Meanwhile, iron ore mining increased by seven percent quarter on quarter to 906,900 wmt, while processed volumes rose by five percent to 1.16 million wmt.
Lower prices and higher costs pressure operations
Fenix's average realized iron ore price declined to $89.4/dry metric ton (dmt) CFR from $98.4/dmt in the June quarter, excluding quotation-period adjustments and hedging. The average Platts 61 percent Fe benchmark fell to $96.9/dmt CFR from $105.3/dmt, while Fenix's discount widened from 6.6 percent to 7.7 percent following two additional low-grade shipments.
Group C1 cash costs increased to A$81.8/wmt from A$79.9/wmt, exceeding the full-year guidance range of A$70-80/wmt FOB Geraldton due to lower shipping volumes and higher diesel costs. The company expects costs to return within guidance in the second half of the financial year as volumes normalize and processing capacity ramps up.
Beebyn Hub supports further production growth
Mining commenced at Beebyn W10 during the quarter, alongside continued operations at Beebyn W11. Following the quarter-end, Fenix commissioned its five million mt/year crushing and screening plant, with full ramp-up expected during the December quarter.
The hub's maiden ore reserve totals 26.9 million mt at 60 percent Fe, providing more than five years of mine life at current production rates and supporting the company's target of sustainable production of up to six million mt/year by the 2027-28 financial year.
Weld Range expansion study rescheduled
Fenix now targets completion of the definitive feasibility study for its planned 10 million mt/year Weld Range project in the first half of 2027, compared with the second half of 2026 previously, allowing time to assess Western Australia's proposed restructuring of regional freight rail ownership.
Financing discussions are progressing alongside the study, with a final investment decision expected to be considered during 2028. Meanwhile, Fenix reported positive demand across its iron ore product range heading into the December quarter, with offtake arrangements operating as planned.
