Fenix Resources

This report is an updated version of the report published on 19 March 2025 at 12:40 PM AEDT.

Section 1: Company Overview and Fundamental Insights

1.1 Fenix Resources Ltd (ASX: FEX) is a fully integrated mining, logistics, and port services company based in the Mid-West region of Western Australia. The company operates a unique, vertically integrated business model that combines high-quality iron ore production with efficient logistics and port services. Fenix’s operations include the Iron Ridge mine, the Beebyn-W11 Deposit, the Twin Peaks Iron Ore Mine, and the Shine Iron Ore Mine, as well as its fully owned Newhaul Road and Port Logistics businesses. Kalkine’s Resources Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives & Negatives; Investment Highlights; and Insights from Management:

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~34.98% of the total shareholding. Mitchell (Craig Douglas) and Mount Gibson Iron Ltd are holding maximum stakes in the company at ~10.15% and ~9.78%, respectively.

1.4 Key Metrics: The expansion of Shine and Beebyn-W11 is expected to elevate production to ~4Mtpa, positioning the company for revenue growth, increased cash flow, and better shareholder value. Below are captured some metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 Results Highlights: Below mentioned are some key financial highlights:   

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price has decreased by around 10.00% in 1 month; and in the past 6 months, prices have shown a gain of around 8.00%. The stock has a 52-week low and 52-week high of AUD 0.235 and AUD 0.445, respectively. FEX was previously covered in a report dated 19 February 2025.

 (Source: REFINITIV, Analysis by Kalkine Group)

4.2 Fundamental Valuation

Valuation Methodology: Price/Cash Flow Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 19 March 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.