There's no denying that ASX small-cap stocks can hold big upside.
However, it's also important to remember that just because a stock is cheap doesn't mean it's a good value.
One small-cap stock that has drawn attention from experts is Fenix Resources Ltd (ASX: FEX).
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Fenix Resources overview
Fenix Resources is an Australian company engaged in exploring, developing, and mining mineral tenements.
According to the team at Bell Potter, it is unlocking stranded mining assets across the Mid-West region of Western Australia, through three wholly owned business pillars:
- iron ore mining (Westmine)
- bulk commodity haulage (Newhaul Road Logistics)
- port services (Newhaul Port Logistics)
Over the last 12 months, its operations have produced record iron ore production and sales.
This has seen its stock price rise from $0.27 to $0.47 per share.
That's good for a rise of 74%.
It has already drawn positive attention from investors in 2026, hitting all-time highs along with posting strong production results.
The team at Bell Potter believe it has plenty of room to keep rising.
Printing records & cash
In a new report out of Bell Potter on Thursday, the broker said Fenix Resources reported a record quarterly result, delivering group iron ore production of 1.14 million tonnes and sales of 1.24 million tonnes.
This was 40% higher than the previous quarter and equates to an annualised run rate of around 4.9 million tonnes.
The company also generated strong cash flow during the quarter, building its cash balance by $21 million.
As at 31 December 2025, Fenix held $79 million in cash and had estimated debt, including leases, of approximately $81 million, leaving net debt of around $2 million.
The broker also said Fenix Resources is on track to shift all mining operations to the Beebyn Hub.
Its newest mine, Beebyn-W11, is now running steadily.
FEX continues to demonstrate strong project execution with Beebyn-W11, its third operating mine, reaching steady-state production of ~1.5Mtpa.
Buy recommendation
Bell Potter has maintained its buy recommendation on this ASX small-cap stock.
The broker has a price target of $0.70 per share.
From last week's price of $0.47 per share, this indicates an upside of approximately 49%.
FEX has outlined a clear pathway to incrementally grow iron ore production to 10Mtpa at significantly lower unit costs, leveraging its integrated logistics network to underpin cash flows and fund its substantial organic growth outlook. FEX holds the largest storage position at the strategic and fast-growing Geraldton Port.
