- Fenix Resources (FEX) has reported a $14 million net profit after tax for the first half of FY22, a significant improvement from ts $1.2 million loss in the prior corresponding period
- The company says its Iron Ridge iron ore project performed outstandingly and hit a milestone of one million dry metric tonnes of sales on December 1
- While iron ore prices were challenging during the six-month period, they’ve started to recover with the current spot iron ore price now above US$158/t
- At the end of the half year, Fenix had $54.9 million in cash which grew to $74.6 million as of February 28, 2022
- FEX shares are up 2.08 per cent to trade at 24.5 cents
Fenix Resources (FEX) has reported a $14 million net profit after tax for the half-year ending December 31, 2021.
This profit result marks a significant improvement from the company’s $1.2 million loss in the prior corresponding period (pcp) being the six months to December 31, 2020.
The company also recorded $114.6 million in revenue for the period.
Fenix said its Iron Ridge iron ore project performed outstandingly in terms of production, which led to achieving one million dry metric tonnes (dmt) of cumulative project sales on December 1.
The company loaded 12 ships with a total of 697,980 wet metric tonnes (wmt) of iron
ore from the Western Australian project. As of December 31 last year, Fenix has shipped 1,198,573 wmt of product from its Iron Ridge project.
Managing Director Rob Brierley said the strong operational performance at Iron Ridge generated profitability at a challenging time due to lower iron ore prices. However, it appears the benchmark price has started to recover.
“High grade iron ore shipments realised an average CFR price of US$126/dmt during the six month period,” he said.
“The recent recovery in the benchmark price resulted in the company realising an average CFR price of US$139/dmt during the first two months of this calendar year and this is only improving with the current strength in the spot iron ore price which is now above US$158/t.”
At the end of the half-year period, Fenix had $54.9 million in cash and had no bank debt. This figure improved to $74.6 million as of February 28, 2022, representing strong operating cashflows over the last two months.
Based on the strong cashflows and higher iron ore price, Fenix is positive it’ll maintain a strong performance for the remainder of the 2022 financial year.
FEX shares were up 2.08 per cent to trade at 24.5 cents at 1:50 pm AEDT.