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- Fe Limited (FEL) completed its first shipment of product from its JWD Iron Ore Project in Western Australia’s mid-west region
- The shipment left Geraldton Port last week with 50,000 dry metric tonnes hedged at a 62 per cent index price equivalent of US$160/dmt (A$220/dmt)
- FEL’s JWD asset forms part of the wider Wiluna West Iron Ore Project which is owned by fellow ASX-lister GWR Group (GWR)
- The company is slowing down production at the site due to price volatility within the iron ore market, as it investigates ways to reduce costs
- Shares in FEL are down 8.89 per cent at 4.1 cents per share
Fe Limited (FEL) completed its first shipment of product from its JWD Iron Ore Project in Western Australia’s mid-west region.
JWD forms part of the wider Wiluna West Iron Ore Project which is owned by fellow ASX-lister GWR Group (GWR).
FEl reports its maiden shipment from the asset left Geraldton Port on October 2 with 50,000 dry metric tonnes on board.
The lump product had been hedged at a 62 per cent index price equivalent of US$160/dmt (A$220/dmt).
Fe recently sold 25,000dmt of this hedge and realised a gain of US$45.10/dmt (A$62.03/dmt), while also entering a swap for 50,000dmt.
Commenting on the shipment and hedges, Executive Chairman Tony Sage said it was a milestone moment for the business.
“It’s a great milestone for our team, contracting partners and shareholders to have the first shipment of JWD high grade lump completed,” he said.
“We only acquired the JWD asset in September 2020 and just over a year later we have already completed our first shipment which is a remarkable achievement.”
Meanwhile, FE also announced today it was slowing down production at the site amid price volatility within the iron ore market.
Mr Sage explained the company wanted to investigate ways to reduce costs.
“Iron ore pricing has been extremely volatile in recent weeks, which makes things challenging for a new project like JWD,” Mr Sage said.
“We are pushing on with our next shipment, which also has the headline price hedged at US$160/dmt.
“We will continue to work hard with our contractors to take cost out and maximise the sale value of the product to try ensure the project remains viable in the longer term.”
Fe Limited shares have dropped 8.89 per cent towards the close of the market on Monday, trading at 4.1 cents each.
