This ASX iron ore producer, trading near record highs, just announced a record result

Fenix Resources Ltd (ASX: FEX) has announced a strong cash build on the back of record quarterly iron ore production, sending its shares sharply higher on Monday.

The iron ore junior said in a statement to the ASX on Monday that it now had $79 million in cash at bank, representing a $21 million cash build over the December quarter.

This was built on the back of record production, as the company said:

Record quarterly iron ore shipments have resulted in a strong cash build demonstrating the company’s successful ramp up in production, consistent operational execution, and the strength of a fully integrated and scalable pit to port model.

The company also reconfirmed its FY26 guidance at total iron ore sales of 4.2 to 4.8 million tonnes, with that guidance last upgraded on December 11.

Delivering on the plan

Fenix said it had shipped 21 cargoes of iron ore, and the 1.24 million tonnes of ore shipped was a milestone for the company, being the first quarter of production at greater than one million tonnes.

At that rate, the company’s annualised production would be 4.9 million tonnes of iron ore.

Fenix said the strong results reflected optimised mining across its midwest iron ore operations, efficient haulage through the company’s wholly-owned Newhaul logistics subsidiary, and streamlined port operations at the Geraldton port.

While Fenix is targeting slightly less than 5 million tonnes of exports from its three mines this year, the company said in its ASX release that it has “an identified pathway to long term production of 10 million tonnes per annum”.

As the company said:

Fenix’s diversified midwest iron ore, road, rail, and asset base provides an excellent foundation for future growth. Assets include the Iron Ridge Iron Ore Mine, the Shine Iron Ore Mine, the Weld Range Iron Ore Project (including the Beebyn-W11 Iron Ore Mine), the Newhaul Road Logistics haulage business which owns and operates a state-of-the-art road haulage fleet, two rail sidings at Ruvidini and Perenjori, as well as the Newhaul Port Logistics business which owns and operates three on-wharf bulk storage sheds at Geraldton Port.

The company has a three-year production plan which envisages 15 million tonnes of production across the financial years out to FY28.

Fenix shares were 9.3% higher in early trade at 52.5 cents. The shares have more than doubled from lows of 25.5 cents over the past years and are not far off their highs of 55.5 cents.

The company was valued at $357.6 million at the close of trade on Friday.

The post This ASX iron ore producer, trading near record highs, just announced a record result appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.