We’re in the AI economy and it’s all about semiconductors, data centres, and — in the resource space — copper, lithium, and critical minerals.
Iron ore plays don’t get much attention anymore, but that doesn’t mean they aren’t profitable.
Case in point is iron ore junior Fenix Resources (ASX:FEX). It released its latest update today.
The news was good for FY26. FEX hit its annual guidance, shipping 4.4 million tonnes (Mt).
That’s a strong lift from the previous year, which came in at 2.4Mt.
What about the next 12 months coming up?
FEX has guided FY27 shipping volumes to 4.7–5.2Mt, representing a 14% increase from the midpoint of its FY26 shipping volume guidance.
The company is aiming to produce 6Mt per annum by FY28 as part of its strategic goals for the business.
FEX shareholders can also note that the company has $81 million in cash in the bank right now.
Its balance has shown steady growth for some time as highlighted in today’s release:
Fenix Chairman John Welborn shows cash is up 42% since 30 June 2025.
That’s a solid result in a subdued iron ore market.
The FEX share price is currently around $0.26 per share. That gives the company a market cap of approximately $200 million.
Back in May, Fenix presented at a conference and noted multiple crucial factors for the iron ore market:
- Chinese property now only accounts for about 28% of steel demand
- The Iran conflict removed 3.8% of global iron ore output
- The Simandou mine in Africa is producing less volume for now than expected
FEX describes the iron ore market this way: “Demand has rotated, supply has tightened.”
It’s true to say that many analysts forecast iron ore to be lower than it is now. FEX is prudent, too, in that it maintains a hedge book to protect its basic required operational cash flow.
Any upside from the spot price can come from the remaining tonnes.
The FEX share price may be down for the year but any ‘upside surprise’ from iron ore could see the market bidding on the stock.
For now, Fenix is executing on what it can control.
Write to Callum Newman at Mining.com.au
Images: Fenix Resources
