Fenix Resources Ltd (ASX: FEX) shares are shooting higher on Thursday morning.
At the time of writing, the ASX mining stock is up 14% to 49.5 cents.
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Why is this ASX mining stock rocketing?
Investors have been bidding the iron ore producer's shares higher after it unveiled an ambitious, three-year production strategy.
According to the release, Fenix has outlined a major ramp-up in output across FY 2026, FY 2027, and FY 2028.
The ASX mining stock confirmed a transition from its current mines, Iron Ridge and Shine, toward the larger-scale Weld Range Project, which is set to become the company's long-term production hub.
The plan reveals that Fenix is targeting:
- 4.2 to 4.8 million tonnes of iron ore production in FY26 (upgraded from prior guidance).
- 4.7 to 5.3 million tonnes in FY 2027.
- 5.4 to 6 million tonnes in FY 2028, driven largely by ramp-up at the Beebyn Hub.
In total, around 15 million tonnes of ore is scheduled to be mined over the period, with 100% coming from ore reserves or measured and indicated mineral resources.
This represents a significant scale-up from the 2.4 million tonnes produced in FY 2025.
Fenix has also reiterated its FY 2026 cost guidance of A$70 to A$80 per tonne, with sustaining capital for the three-year period estimated at $35 million to $45 million. The latter is fully funded through cash flow and existing facilities.
'Exciting plan to create exceptional value'
The ASX mining stock's executive chair, John Welborn, was very pleased with the plan. He said:
Fenix has a clear and exciting plan to create exceptional value for our shareholders by delivering on our growth objectives. Having secured the 290 million tonne Weld Range Project, we are now centralising our mining activities and ramping up our production while we work on a feasibility study to transform the business. The 3-Year Plan confirms our near-term growth ambitions and will provide a strong revenue base for Fenix to become a larger, more profitable and sustainable iron ore producer.
This growth plan is organic and, consistent with our successful track record of incremental growth, capable of being fully funded from our operational cash flow and existing finance facilities. The outlook is underpinned by realistic production forecasts and cost assumptions and focuses on maximising the utilisation of our existing infrastructure assets in Western Australia's Mid-West.
With a clear pathway to becoming a 6Mtpa producer, today's surge suggests investors believe Fenix may be entering a new growth phase.
