This is a live webinar. Shareholders and investors participate in the webinar and ask questions in real time.

If you would like to ask a question, just press on the Q&A icon at the bottom right of your screen. This will open a new screen and at the bottom of that screen, there's a section for you to type your questions.

Once you've finished typing, just please hit send uh enter enter on your keyboard to send. If we get multiple questions on one topic, obviously I won't ask them all.

That way we can cover as many topics as possible. If there are some questions we don't get to because of time constraints, John has indicated that he will answer them in due course via email.

Just a reminder, you can submit questions at any time during the webinar. With that said, it's now my pleasure to pass over to Fenix Executive Chairman John Welborn for some introductory comments.

Thanks very much, Mick. Uh, great to have published yesterday our annual report.

It obviously includes all of the financial results for the year, the 12 months to 30 June 2026, includes our remuneration report, uh and also for the first time for for Fenix, our sustainability report, uh which we're really pleased with. It was a record year for Fenix.

It demonstrates the continued growth, evolution in our business. Uh I'll pass over to Chris Hunt in a moment to just talk through some of those numbers from a financial perspective.

Uh but I wanted to talk more about the relevance of this 12 months in the longer-term potential of Fenix. It was really pleasing in writing my chairman's letter in the annual report, uh which as you might imagine, you start by looking at the the one that I wrote 12 months before in the FY25 annual report.

In the in the previous period, we were very pleased to have increased production so significantly. We changed from a one single-mine 1.5 million tonne per annum producer to a 2.4 million tonne producer in FY25.

We proudly spoke about how we had uh shipped 41 vessels, and we also spoke about the future, what we were planning to do during the 12 months that we've just reported on. It's really pleasing to reflect on the fact that we made promises and we've kept them.

4.4 million tonnes, up 74%, uh the uh the vessel numbers uh up a similar amount, more than 70 vessels, and significant growth across our business. Really importantly, and let's start with the safety outcome, uh when when our business is very complex, it's getting more complex.

We have haulage trucks on the road that are driving the equivalent distance every day of three times around the Earth at the circumference. Uh think about the complexity of the port business that you can see behind me in just increasing those number of those vessels interactions.

Our mining business is scaled up significantly. We moved 15 tonnes of material in order to produce, haul, and ship that 4.4 million tonne record number.

Very pleasing that across all of that complexity, we've continued an excellent safety performance and actually brought down the key metrics. Uh and that's a really important part of what we're calling One Fenix, which is a focus on the management of an integrated supply chain across our business.

Uh during the 12 months, we announced a game-changing deal. Another reflection on the difference in this company over that period.

Uh and that was obviously the 30-year exclusive license we have secured over the 290 million tonne high-quality direct shipping ore resource in the Weld Range, and we're now well advanced in this company's future, which is to ramp up the production from the Weld Range to 10 million tonnes per annum. Uh before I speak about that project, though, the other significant event during the 12 months was to publish for the first time a three-year plan, holding ourselves accountable.

Uh and we're effectively now reporting on the first year of that three-year plan, FY26, where we've achieved our guidance on production and cost. We're now into FY27, guiding effectively the midpoint of 5 million tonnes, and pleasingly, we've managed to maintain our cost profile at between 70 and 80 Australian dollars FOB Geraldton, the same as it was last year, the same as it was the year before.

I'd prefer uh shareholders to my presentation at the Diggers & Dealers Mining Forum, which outlined how across the industry, all of our peers' costs are up more than 20% over that period, uh and we in fact are keeping our costs uh within that guidance band, which is a great outcome. Uh uh the the comparable growth in the business in production is equaled with a growth in our people.

Across that business, we're employing and attracting high-quality people, uh and we're doing a lot to motivate those people around a culture which is uh around safety, production, cost, focused on shareholder value. Uh very pleasingly, shareholders in looking at the annual report and thinking about our ongoing performance uh will notice that we'd expect that growth and improvement in our people goes all the way through to the board where we've recently rel- welcomed Jen Morris and Michael Golchehski uh to the board of directors, and fantastic to have those as part of our One Fenix vision and our integrated model.

Uh pleasingly, we've uh again declared a final dividend, fully franked, $0.01 a share. Uh that represents a payout uh against our net profit after tax of 64%, uh and I'm very proud to say that that brings the total dividends paid since we last raised equity, which was $15 million in 2019 to build the original Iron Ridge mine, now totals $82 million.

Uh we have abundant franking credits available, uh and although we're paying a small dividend at the moment, our main focus is our growth in revenues, our growth in earnings, and our potential to use the franking credit credit balance that we're building up for future shareholder dividends. I'd encourage all shareholders and market participants to look in detail at the annual report.

We also published a much shorter uh FY26 financial results announcement. Uh we'd love to engage with shareholders both in during questions in this webinar, but also outside of the webinar.

Uh and uh we're very proud of our performance. We have a really clear vision at Fenix: to design, implement, and operate a fully integrated, scalable iron ore business delivering safe, reliable, efficient mining, logistics, and port operations supporting sustainable cost advantages, profitable growth that rewards all of our stakeholders.

Very pleased in the FY26 report. I'll pass across Chris to go through some of the numbers.

Thanks, John. Appreciate it.

Firstly, let me start by saying I'm really proud and to echo John's comments for what Fenix achieved in FY26, and it's really pleasing to present these great set of results today. From a financial perspective, FY26 was another very strong year for Fenix with significant increases in production flowing through to our improved financial performance across all our financial metrics.

Revenue increased just on 87% to $590 million compared to $316 million in FY25. EBITDA, which is a measure for cash, increased nearly 50% to $81 million, and net profit after tax increased by 128% to $12.3 million.

The important point with all these metrics is that this growth translated into cash with our operating cash flow increasing 33% to $96 million for the year. The key driver of all these substantial improvements in the financial metrics was volume.

Shipments, as John mentioned, were a record 4.4 million tonnes during FY26, which is an increase of nearly 85% on the 2.4 million shipped in FY25. What's really pleasing is that this financial growth was achieved while the Australian dollar realized iron ore prices that Fenix received remained relatively stable year on year at approximately $147 a tonne Aussie, uh compared to $144 a tonne last year.

Cost dis- cost discipline, which we really pride ourselves on, was also maintained through this significant ramp-up period. Group C1 cash costs were just under $74 a tonne, which is in line with the FY25 group C1 cash costs of around $73 per wet metric tonne.

Notwithstanding volumes increased by more than 80%, our unit costs remained broadly consistent year on year. This is the the the the production increasing, which is lowering our unit costs and is offsetting any inflationary ple- pressures that a lot of companies are seeing in Western Australia and certainly across Australia.

In terms of the balance sheet, this was really strengthened during the year with $81 million of cash, up around 45% from F- from $57 million at the end of FY25. What's impressive about this, this was achieved after we invested approximately $50 million in capital expenditure, which is supporting the development of the Beebyn hub, which we've mentioned before, and is is really about the future of this company for the next 10 or 15 years, as well as investing approximately $25 million to secure the Weld Range right to mine uh payment to uh Sinosteel, which was about 20 uh which was about $20 million.

Again, this expenditure that we're incurring is not just for 1 year or 2 years, it's multidecade expenditure that we're setting this business up for. The investment in capital expenditure and the first payment to Sino, uh as I mentioned, is about building an iron ore company for decades to come with which will generate substantial cash flow returns to shareholders.

We've been able to substantially increase production, generate earnings and cash flows, and at the same time, continue to invest significantly in the future of this business. It's not surprising that funding was also a really important focus during FY26, and pleasing to say that during FY26, we we secured approximately $44 million from Resminvest, which replaced shorter-term iron ore prepayments that we're doing with that we were doing with medium to longer-term funding.

It's extending our tenor by about 2 years and reduces any near-term refinancing risk. As important, provides a really strong capital base as we continue to ramp up production through FY28.

At 30 June, we've drawn approximately $35 million Australian under these facilities. In addition, uh we've we have always had access to uh chattel property mortgage finance across our trucks and trailers, and we've got access to about $120 million Australian to finance our growth in terms of truck, trailers, and uh property in Geraldton.

At 30 June, we've only drawn $82 million. These facilities are continuing to support our investment in our haulage fleet the fleet, crushing and processing infrastructure, and all the other assets required to deliver our growth plans.

John's mentioned this before, and I I think it's important to mention again, for shareholders, we have not raised equity since August 2020. From when we started as as a single-mine operation producing around 1.5 million tonnes a year to the multimine business that we are today, which has been funded through cash flows and debt facilities.

As the capital program is completed during FY27, and it it's predominantly going to be completed by the end of uh the first half of FY27, we'll expect to see our drawn debt beginning to reduce in the second half of next financial year, or this financial year. Despite this growth, as John mentioned, and this significant investment in growth, the board has declared a fully franked final dividend of $0.01 per share, representing approximately $7.7 million, or 63% of NPAT.

As John mentioned, and I want to mention this again, it's important to note, our total fully franked dividends returned to shareholders since 2021 is $82 million. Overall, it's really pleasing.

FY26 re- represents a significant year-on-year step change for Fenix: production up 83%, revenue up 87%, EBITDA up 50%, NPAT up 120- 128%, and operating cash flows up around 35%, with our year-end cash balances up around 45%. Looking forward to FY27, we enter with a really strong platform with appropriate funding in place to deliver our growth pl- program across that three-year plan that we announced in December last year with a continued focus on capital allocation by balancing our growth investment, balance sheet strength, and returns to shareholders.

Thank you. Over to you, John.

Great. Uh over to you, Mick, for Q&A.

Thank you. Thanks, Chris.

Thank you, John. The first one from Michael Bentley and he rolls a couple into one here.

He says, "Can you give us some insight into how costs are traveling this quarter? Can you give us some insight into shipping costs trends as well?

How's the Mirabau agreement working out? Anything to report there?"

Uh FY27 is not going to be a linear year for Fenix. Uh obviously, shareholders are aware we're in the closing stages of the Iron Ridge mine, uh similarly the Shine mine.

We're establishing the Beebyn hub. Uh we're still at a very early stage of our new mine there, uh Beebyn W11, and we're in the process of starting at the very, very nearby mine at the next deposit in the Weld Range that Fenix will mine, which is the Beebyn W10 mine.

A lot going on during this first quarter, uh including establishing the new crushing and screening plant as part of the Beebyn hub. That's in our mining business.

Uh at the other end of our integrated supply chain at the port, uh where it the the sunny days you can see behind me at Geraldton Port uh are not are currently the case uh in the winter period. The trees go size- sideways in this part of the world, and and the port does suffer from surge events, which during July, August, and September uh sees the port closure uh status.

Uh we've we've built that into our planning. Uh we're very confident in our FY27 guidance, and the market will be aware if if that changes.

Uh how are costs traveling? We're confident in our ability, uh as I referred to earlier, to maintain those between 70 and 80 Australian dollars over the course of the entire year.

We're building, as Chris has just outlined, a 30-year business. It's not a quarter-on-quarter performance.

It's it's an annual guidance, uh and we'll, having established W11, during this quarter and next quarter will ramp up and start and ramp up W10. Uh and then that will allow us to achieve our target midpoint of 5 million tonnes per annum.

Far this quarter is going to expectation. It is the uh is the uh reality.

Um similar to my earlier comments, it's not that long ago that we were all hat and no cattle. Now, we've got the cattle, uh and we're preparing to herd them.

Um so, hang on to your hat, Mick.

Chris, did you have anything...

Chris, you might want to add something about Mirabau and how that's going. It's early days.

The certainly Mirabau, which we announced towards the back end of FY26, which, is is a partnership bit with Resminvest, who is a a substantial shareholder in the company and provides us significant funding. Uh that partnership's all about scale.

We add scale to that partnership for them, uh so they can leverage off that. Then we, what we get from that is uh lower costs in shipping.

With an environment where shipping costs are certainly dictated, well, always have been, but are certainly impacted by uh the Strait of Hormuz and diesel price, anything we can do to lower our shipping cost is uh key to this business. We expect Mirabau and that partnership that we have to uh deliver returns.

Like John said, early days, uh but we we're certainly work- we're excited about it and we think it will deliver some benefits. I think the other comment on cost, again, building scale uh will lower our unit costs, and and we expect that to ameliorate inflation impacts across the business.

I'd I'd also refer again to my Diggers & Dealers Mining Forum presentation. As Michael knows, our ability to maintain costs in an industry where costs are are rising uh is because of our ability to be proactive in things like the Mirabau partnership in in taking over our own crushing and screening plant and capturing benefits.

Everyday, we're looking for cost synergies and cost advantages in our existing business, which is a three-year plan which will see costs in or around that area, at the same time while we're looking to significantly reduce the those costs with our future state business, which is a 10 million tonne a year business at a at a at significantly decreased costs. That's the journey, and we'll continue to report against it, Michael.

Okay. Michael Bentley from MST continues.

He says, "How is the diesel supply situation? Any updates on that?"

Uh we're very confident in supply. We continue to do a lot of work, uh and so, in terms of the question on supply, we're we're very confident in our future supply.

We're also working with uh fuel refiners, fuel importers, consistent with the the ramp-up in scale of our business of more than 300% over the last 24 months, uh that equates to a significant increase in our fuel use, and particularly our diesel use. That's allowed us to negotiate uh more advantageous commercial terms, and we look forward to updating the market on that.

Supply is secure. As Chris has just described, a key uh uh cost input for us is diesel, and we're managing that through uh commercial arrangements.

The last thing I'll say on fuel is we continue to aggressively explore longer-term opportunities to re- reduce our reliance on uh fossil fuels and diesel.

Then Michael continues, "How is the Weld Range study progressing? Can you give us an update on timing and any insights on the work done so far?"

It

It's going really well. It's very exciting.

Uh the scoping study we published in December remains a very, very valid document for anyone interested to look at as to watch the 10 million tonne a year business, quick summary recalling that we outlined a pathway to achieve a 10 million tonne a year business by 2032 uh and outlined that we believe the costs of production in that business across uh a long-term mine life uh will reduce down to 55 Australian dollars FOB Geraldton. We continue to be excited by the opportunities we see.

We're looking at further um potential across that pit-to-port model, doing a lot of work at the moment on the transition potential to rail in that last 100 km into Geraldton. We're also doing a lot of work on product, marketing, and particularly in blending, in looking at the 200 or the the now, if you look at our annual report, the 310 million tonnes we have in resources.

What is the best way that we can maximize value through blending? That's all going to be updated into the definitive feasibility study.

Uh there's no time pressure on the DFS, recalling that we're one year into a three-year production plan. Uh that plan hasn't changed.

The DFS really charts the growth in the business beyond that plan, it really commences in July 2000 uh and um 29 on, with FY29 onwards, July 2028. All of that work uh is ongoing, and we'll make sure that we get it right.

Uh the last thing I'll say is that we're also very keen that by the time we publish and release that study, we do so in a way that where we have total confidence in the financing solution for the significant capital we need to achieve that very high-value outcome. There's a number of different work streams going on both within the DFS, and also in in Chris' team on the finance side in parallel, so that we can ensure that we've got confidence in our in our finance pathway.

John, you mentioned that 10 million tonnes. Michael says, "In general, how are the approval processes moving along for the path to that 10 million tonnes?"

I think we've got an excellent track record in relation to approvals. Uh there's no change to that.

It It remains a day-to-day issue. It's something that we've done as a company extraordinarily well.

In an industry where greenfields projects are taking decades to uh achieve, we continue to show that we can rapidly take a mine through exploration into development and through approvals. It's going to be a critical area in the private haul road we intend to build.

Reminding shareholders, we've fully approved and built two private haul roads that we use everyday now in our existing operations. The new haul road is just a lot longer.

Similar approval pathway, uh similar ownership. W10, uh we're repeating the process that we successfully tracked with Beebyn W11 and with Iron Ridge and with the restart at Shine.

In general, uh approvals remain a very critical area. We work with a number of stakeholders, uh traditional custodians, uh the mining department, environmental track record, uh and at this stage, all is tracking to expectation.

Then

Michael's final question, he says, "As always, would like to hear your view on the iron ore market and how you are seeing the trends?" Uh

Well, again, I spoke about this in in my last presentation at Diggers. Uh I In a mining forum with a broad cross section of miners, obviously dominated by gold miners who are enjoying a day in the sun, I am interested in how bullish the market is on copper, on nickel, uh on lithium, on tungsten, uh on other metals, which I would see as being derivatives of the steel industry.

Uh we are incredibly exposed to upside in the iron ore price, while also being having demonstrated that we're resilient in the downside. Uh and and I might pass over to Chris in a moment to talk about our hedging profile in context of what we see in the iron ore market.

Uh seasonally, uh unsurprisingly, we're seeing some weakness in the iron ore price. It's ducked below 100 US dollars a tonne.

We've just published an annual report that shows that we can be very profitable uh at the sort of levels we've experienced over the last 12 months. I remain confident in global growth, and therefore, I'm a big believer in the fact that iron ore is a great place to be and that we can build a huge business.

Unusually for a miner, our business does not rely on iron ore strength. Although we're very, very leveraged to the upside on on iron ore strength, uh we're building a business that that will generate increasing profits even if we see lower iron ore prices.

Then, did

Chris, did you want to chat about hedging?

Absolutely. I I think in terms of hedging, at the moment we are a little bit lower hedged than what we have been before, John's comment.

That remains true. Typically, in terms of iron ore swaps, we would be around that 30% mark.

We're probably about 20% now as our volume scales up. Uh so, we do we remain incredibly exposed to that positive upside to the iron ore price, but we still balance that with our level of hedging we do uh to ensure that we uh can make, a a margin, a substantial margin, uh should the iron ore price go the other way.

I I think the other comment to make is that we we certainly saw over the last couple of years maybe a little bit of a disjoin between the iron ore price or commodity prices and the Australian dollar. That that disjoin uh has stopped, and we remain a commodity currency.

Uh so, if the iron ore price goes up, then the Australian dollar will strengthen over a period of time. If the iron ore price goes down, then the Australian dollar weakens.

When we, and that remains true today. Uh and and that will remain true for as long as Rio Tinto, BHP, FMG sell in US dollars, where they've got to convert a lot of that to Australian dollars.

That's what drives primarily the Aussie dollar. When we think about our hedging program, we we think about that relationship and that's why we've got a modest level of iron ore swaps at the moment.

With the seasonality of iron ore that we're seeing, that we see every year obviously, seasonality, we will look to increase our exposure to swaps uh in the next couple of months. Uh and we're already seeing a tick-up in the iron ore price.

We'll continue to do Australian dollar calls, uh which gives us all the upside for minimal cost. We'll continue to do that because we're a commodity currency.

The other thing that we did in FY26 uh with uh the Strait of Hormuz and that and the US-Iran conflict is we entered into uh diesel swaps for the first time, uh where we hedged 30% of our exposure in FY27. Uh and we hedged at prewar levels, or preconflict levels.

Uh and they uh at this stage uh are very much in the money uh and very profitable for us at the moment. Uh notwithstanding also the best way to reduce uh our exposure, or I guess improve our margin, is to lower our breakeven, which John mentioned earlier, where we're we're looking to do that with um more secure and cheaper priced fuel contracts.

Hedging hedging in summary remains a strong focus for us. We look at it everyday.

Uh we look at opportunities about protecting our margin. Our best hedge, and and John's said this many a time, our best hedge is to lower our breakeven.

That best hedge that we can do is when we deliver our DFS, and we've got C1 cash costs of mid-50s per tonne.

Great. Then James Williamson from Bell Potter, he comes in.

He says, "Talk through your corporate. Are your employee, marking, and other head office expenses and headcount, and how this will evolve over the coming years with the Weld Range expansion?"

It's a pretty simple answer. Uh year on year, our corporate costs were largely in line.

Uh we remain very focused on our corporate costs. We want to remain nimble.

Uh we and we'll continue to do that. I don't see a material increase in our corporate costs going forward.

Uh we're a fairly simple business. Um we are scaling up, we are adding some complexity, but that that simplicity will remain and how we think about things.

How we think James, first, before we think about employing people, we think about process. How do we simplify it?

Secondly, how can we leverage off systems, IT, AI? We're doing a lot of good work there.

I I don't see our corporate costs materially changing from where they are today.

Okay. This one from James, echoed by a question from Greg Oatman as well.

He says, "Can you elaborate on the key considerations that led to the board's decision to declare a dividend? With a large Weld Range capital program ahead, how should we think about shareholder return versus preserving cash for growth?"

It's a good question, James, and the easy answer is refer to the dividend policy that the board uh updated in 2023. It It says that we will consider a dividend on an annual basis with regard to available franking credits and with regard to the future capital requirements of the business based on net profit after tax.

Uh and I think James' question is really around given that we continue to invest in the business, given that we see huge opportunity to increase our profitability by investing capital in the business, why does it make sense to pay a dividend when we might need that capital, or we could better use potentially that capital to drive greater returns in the future? The answer is is that policy, we are demonstrating we believe we can do both.

I believe it is a very good discipline that mining companies are not the best examples of, to pay a dividend when you're a profitable company, to reward your shareholders. James, it represents our confidence that we can walk and chew gum.

That we can continue to pay, albeit a small dividend, to our shareholders while our profits remain modest, uh and it also uh demonstrates our commitment that we will continue to pay a dividend as our profits grow. The really exciting thing for Fenix shareholders, if you look at the scoping study and or you wait until we publish the DFS, is just what those numbers could look like in several years' time when we're at 10 million tonnes a year with a completely different cost base.

Uh so, elaborate on the key considerations of the board: we looked at uh the exactly the things in the policy. What are our available franking credits?

I think we could pay around $90 million out in dividends today and fully frank them. It's a huge benefit, particularly with changes in tax code in Australia.

I think investors will be looking for companies that pay fully franked dividends and have a benefit and a potential in the future to pay significantly higher dividends. We had available franking credits.

The future capital demands of this business, they're significant. By paying a small $0.01 dividend, we're saying that we are confident we can fully fund this business in future from cash flows, from debt, uh and from our ability to stage the development of the Weld Range project.

Uh so, we considered all of those things, and we considered our responsibility to shareholders under the uh uh under the policy, and so we replicated last year's payment. As Chris said earlier, that means that we've now bought total dividends since we last raised capital to $82 million, uh which is about, I think, 5 or 6 times the amount we raised um 6 years ago.

Pleasing, but you can expect us to continue to focus on uh building a business that can pay greater dividends in future.

Great. Now, I'm just conscious of time.

We've got a few questions still coming through. This one from Isaac Barton from Moelis.

He says, "The integration improvements in the June quarter were striking. Haulage annualized at 5.5 MTPA, and average shipment size lifted about 3 kt above your life-of-mine average.

Can you talk us through what changed in the coordination between mining, haulage, and port, and how much of that improvement you think is now locked in as you scale towards the 6 MT?"

Really good question, uh and first of all, Isaac, thank you for noticing uh the integration improvements, and particularly what we showed in that last June quarter where we really, uh for the first time, had brought our mining business, our logistics and haulage business, and our port business under into a new integrated supply chain management system that we've developed internally. Uh and and as I said earlier, we delivered that outstanding result while maintaining zero time injuries.

Uh and the answer is improved planning and improved coordination. It's It's around managing the flows in our business.

I mentioned in the current quarter that we've had closures of the Geraldton Port. As you can imagine, that that that means that we need to adjust our haulage rates, we need to think about what opportunities we have uh to stage our mining and manage our costs in in that variety.

We'll continue to demonstrate uh that the that that that that is. One particular highlight was setting a record at Geraldton Port where we loaded 69,125 tonnes uh off berth 5.

No one has ever achieved that before. Uh if you're looking at our average payload in boats, uh the 3,000 tonnes that Isaac refers to, is that we're now loading 3,000 tonnes on average more into each boat.

That's extra freight savings directly into our value chain. Uh and the answer, the really important answer for Isaac is yes, we are capturing those benefits on an ongoing basis.

We're loading more into boats in in the port off berth 5. We're getting greater efficiency in matching our haulage business, which now responds completely to the demands of the mining business and the pull from the port business.

Uh and so, not only are we locking in those gains, but we're looking for increased opportunities to do the the exactly the same thing as we scale up the business.

He continues. He says, "Beebyn W10 and the 5 MTPA crushing plant are both expected to come online in Q2 FY27.

Considering we're only a month away from the start of Q2, can you please let us know how they are progressing, and can you give us a sense of the unit cost benefit you expect once the Beebyn crusher is commissioned in Q2?"

Really exciting opportunity. We talk a lot about the Beebyn hub.

Uh just a reminder, we've been operating originally one mine in Iron Ridge, and then we were operating three completely different remote mines: Iron Ridge, Beebyn W11, and Shine. The Beebyn hub will really center our operations around Beebyn W11 and Beebyn W10, and we're going to, for the first time, uh own and operate our own crusher there.

It's under construction. It's on uh track for commencement in Q2, uh as Isaac mentioned, uh and the savings there, uh well, they're part of an integrated supply chain, Isaac, but my own expectation is we believe we can save a couple of bucks a tonne at full noise.

Uh and when you think about our whole business, that's really significant. Uh and that's a challenge for the team, uh San and Block and uh all of our miners under the control of Fernando Pereira.

Uh and it's the start of uh us taking more responsibility, more control, and lower-cost mining as we ramp up.

Then Dave Brennan from Petra Capital asks, "The increase in borrowings and least liability to Australian $103 million is for fleet expansion, but how should we forecast this going ahead over the next few years?"

Thanks, David. Thanks for the question, and it's an important question.

Again, let let's start with how we funded this business. We we've raised equity once.

We have not raised equity since. We have funded this business from cash flow and finance facilities, and that's got us to the growth where we are today and will get us to our growth to achieve our three-year plan.

We have materially minimized dilution for shareholders, which I think is a fantastic outcome. In terms of the specific facilities that we have at 30 June, uh they weren't fully drawn, uh and I expect them to start decreasing in calendar year 2027 as the CapEx to support the three-year plan is completed, which I we're on target to complete the CapEx for this expansion plan uh in this current half.

We also, for the first time, introduced our first working capital facility, uh which is the the Resminvest Mirabau transaction and the financing that comes from that, which was US$44 million, of which we drew US$24 million as at 30 June, or 35 Aussie. Uh so, we will we will continue to draw on that as we need, but again, I expect that to reduce during 2027.

Then continued question, "Any guide on likely CapEx spend relative to FY26's 51 million, not including Sinosteel?"

Yeah. In terms of that that CapEx spend, uh as as outlined in the full-year results release, we've guided uh for FY27 and FY28, and and deliberately so because that's to achieve our three-year plan.

Uh and and that guidance is $20 million in sustaining, you can assume that evenly between 2027 and 2028, $10 million each year. Then we've got truck and trailer finance, including refurbs, which are predominantly debt-funded, of $40 to $50 million expect uh again, the bulk of that to uh start decreasing post this half.

Then we've got the Beebyn hub of $30 million, uh which again, the majority to be incurred in this half. That includes the $15 million that John mentioned for the 5 million tonne crusher, which is debt-funded.

Uh so, we've largely got through that capital for the Beebyn hub, a couple more months and and we'll be through that. Then we've got $20 million for logistics and port over FY27 and '28.

Again, you could assume uh for modeling purposes uh $10 million each year. Then

finally from David, "Any thoughts on green steel?" Uh

Great question. Uh I have no doubt that the future of the steel industry globally is to focus on cleaner steelmaking.

Uh however, we see obviously huge demand currently for our hematite products. That move to cleaner steelmaking, you might call it green steel, is going to see an increasing uh demand and a premium for really, really high-grade material and ultimately, high-grade magnetite concentrates.

From a Fenix perspective, in a long-term sense, that what drives our investment in Athena, and we're really looking forward to Athena's uh drilling results from uh their program at the Byro deposit. Uh and ultimately, we believe that's the best opportunity in the Mid West to produce a very high-grade magnetite concentrate, which the market is increasingly looking for.

Green steel's a reality. It's a very, very long-term transition.

Uh and we believe the Mid West is a great place not only to produce the high-quality direct shipping or hematites that we're ramping up, but also the future potential for very, very globally important high-grade magnetite concentrates. Ultimately, given the congruence of wind, solar, and gas availability in the Mid West, potentially downstream developments in green steel.

Uh stay tuned both from Fenix and Athena for that to be a part of our future strategies. However, at the moment, it's it's very clear that our focus day to day is our three-year plan.

Our longer-term strategic plan is to ramp up 10 million tonnes per annum. We're not uh unaware of that longer-term industry driver, which is around cleaner products and uh ultimately, high-grade magnetite concentrates.

The great news for Fenix is what we're doing at the Weld Range leads into the much larger multibillion-tonne high-quality magnetite deposits that lie underneath those hematites: Jack Hills further to the north of us, owned by our big partner in Baosteel; the Athena deposit, a very, very, in our view, the highest quality magnetite project in the region. We're very, very interested and exposed to the green steel dynamic.

At the moment, we're focusing on our business, uh but we're leveraged and following and ready to react to those industry changes as they happen.

Now, we've probably got time for one more question. Fred and Grant, we'll we'll have to get to you outside this forum.

This one just from Simon [Catad Arlington?] , just sent through, "How does Fenix outrun falling iron ore prices, rising AUD, and transport costs to generate shareholder returns?"

Good question, Simon. Uh my answer would be, we do exactly what we're doing.

Uh we we scale up our business, we manage our costs, we deliver our three-year plan, and we implement a growth plan by investing capital to produce much more iron ore at much lower costs. Uh as you would uh recognize looking at our numbers, free cash flow generation in the year we've just reported on yesterday was 50% higher than than FY24 at um based on a 300% increase in iron ore production.

That's how you outrun a falling iron ore price. Uh when Fenix first got into production, iron ore prices hit $160 US a tonne.

They're now below $100 US a tonne, and we've just reported on a period where our revenues have gone up significantly, which has allowed us to be profitable. We're outrunning a falling iron ore price, and we're going to continue to do that.

What as I mentioned earlier, our increased profitability, our potential to pay bigger dividends is not linked on iron ore price outperformance. It It will be hugely uh turbocharged by our performance in iron ore.

Uh however, it doesn't rely on that, and we're outrunning it by doing exactly what we're doing: scaling up our business, managing and ultimately bringing down our costs, uh and being robust in our approach.

Unfortunately, we are out of time. John, any closing comments before we do wind it up?

Look, FY26 has been a record, another transformational year in Fenix. Further transformation awaits us.

Uh I'd direct anyone interested to read my chairman's letter in the annual report. Its summary is the last line, which is, "The best is yet to come."

For shareholders, as I mentioned earlier, we'd love you to engage on any questions you have on the FY26 report. We've grown production, we've strengthened our financial performance, we've strengthened our team, we've increased the integration and focus across our business, uh and we've done all of that while more importantly, we're building a platform for our next phase of growth.

Thank you to everyone in our team uh across our One Fenix business: our staff, our customers, our partners, our board, uh and most importantly, our shareholders for their continued support and contribution. Uh as you can hear, we're proud in our achievements.

However, we recognize uh that we need to demonstrate and continue to perform and deliver on the promises we've made. We did that in FY26.

We're now working hard to do that in FY27. Uh I hope you enjoy the results of of our next year as much as you have the reporting on the last year.

Thanks very much for everyone who's joined us today.

Fantastic. Look, that does conclude today's webinar.

Again, apologies we couldn't get to all the questions. We will try and get to them outside this forum.

Again, thank you to John, thank you to Chris, and of course, thanks to you for your time. Enjoy your day.