When you think about iron ore, Fortescue Ltd (ASX: FMG) shares likely comes to mind.
But that doesn't necessarily mean it is the best way to gain exposure to the base metal.
In fact, there is one ASX iron ore stock that Bell Potter believes could be a top buy with major upside potential.
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Which ASX iron ore stock?
The stock that Bell Potter is bullish on is Fenix Resources Ltd (ASX: FEX).
It is focused on unlocking stranded mining assets across the Mid-West region of Western Australia, through three wholly owned business pillars. This includes the Iron Ridge, Beebyn, Shine, and Weld Range projects.
Bell Potter notes that a December 2025 scoping study outlined production growth to 10Mtpa at significantly lower C1 costs of A$55 per wet metric tonne by FY 2031.
What's the latest?
Bell Potter highlights that the ASX iron ore stock released an update on current operating conditions. It said:
FEX has provided an operational update. The Mid-West Port Authority will temporarily pause shipping operations at the Geraldton Port, with latest Bureau of Meteorology forecasts indicating that Tropical Cyclone Narelle is intensifying off Western Australia's coast and could track towards the Mid-West region.
Additionally, FEX is preparing to reduce non-essential mining and haulage activities (i.e. some waste movement) with potential diesel supply disruptions from contracted providers due to the Middle East conflict. Subject to cyclone impacts and given healthy iron ore stockpiles at its mines, FEX expects to maintain sufficient fuel to continue processing and hauling volumes to its port facilities in Geraldton.
The good news is that the ASX iron ore stock has maintained its guidance for FY 2026 and Bell Potter believes its "growth pathway" is intact. It adds:
While the Geraldton Port closure will defer some March 2026 sales, FEX have maintained FY26 guidance (4.2-4.8Mt sales at A$70-80/t C1 cost; 1H 2.1Mt at A$75/t) with the expectation that ship loading resumes in early April 2026 and diesel supply maintained at normal levels. FEX's three-year production outlook and growth pathway to 10Mtpa iron ore production remains intact.
Should you invest?
According to the note, the broker thinks investors should be buying the dip following recent share price weakness.
It has retained its buy rating with a trimmed price target of 63 cents (from 67 cents). Based on its current share price of 33 cents, this implies potential upside of 90% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter concludes:
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.
