Fenix Resources Limited (ASX:FEX) Announces Q1 2025 Quarterly Report and CZR Acquisition Offer
Operational Achievements
Fenix Resources Limited achieved record iron ore shipments of 704kt in Q1 2025, driven by the Shine Iron Ore Mine’s ramp-up to full production. The company also secured key mining approvals for its third mine, Beebyn-W11, and maintained strong logistics performance with 712kt hauled during the quarter.
Financial Performance
Fenix reported reduced C1 cash costs at both Iron Ridge and Shine mines, with Iron Ridge at A$73.8/wmt and Shine at A$77.9/wmt. The company maintained a robust cash position of A$54.9 million and a positive operational cash flow of A$26.3 million, supporting growth initiatives and the upcoming CZR acquisition.
CZR Acquisition
The company launched an all-scrip takeover offer to acquire CZR Resources Limited (ASX:CZR), expanding its iron ore assets and strategic footprint in the Southern Pilbara. As of April 14, 2025, Fenix held a 14.97% interest in CZR shares, with the offer extended to April 29, 2025 amidst competing proposals from Gold Valley Iron Ore Pty Ltd and participants in the Robe River Iron Associates Joint Venture.
Executive Comments
Executive Chairman John Welbourn stated, “Fenix delivered a standout March Quarter, marking a major step in our growth trajectory. Shine is now in full production, Iron Ridge continues to perform, and our third mine, Beebyn-W11, is moving rapidly towards first production. Our appetite for further value accretive expansion was signaled by the launch of a takeover offer for CZR Resources Limited. With strong margins, disciplined cost control, and more than $54 million in cash, Fenix is well-positioned to become a leading, fully integrated iron ore producer and logistics provider in Western Australia.”
Motley Fool contributor Abbie Stokes 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.
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