- Fenix Resources (FEX) sold roughly 344,000 wet metric tonnes (wmt) of iron ore from its Iron Ridge project in the June quarter
- This takes the total amount shipped to 1.84 million wmt from the WA project since the first shipment early last year
- The company generated around $15 million in net operating cash flow which resulted in a cash balance of $101.9 million at the end of the June quarter
- Fenix also increased its 50 per cent stake in haulage business, Fenix-Newhaul, to a 100 per cent interest which is expected to increase the company’s earnings even further
- Company shares are up 1.69 per cent to close at 30 cents
Fenix Resources (FEX) has delivered its quarterly report for the three months ending June 30, 2022.
The iron ore company sold roughly 344,000 wet metric tonnes (wmt) across six shipments of iron ore from the Iron Ridge project in Western Australia. This marks an increase of nearly 50,000 wmt from the previous quarter.
The average grade shipped was 62.1 per cent iron for fines compared to 61.6 per cent in the March quarter, and 63.6 per cent iron for lump product compared to 63.9 per cent in the previous quarter. The company said this shows the “unique, high-grade, high-quality nature” of the Iron Ridge ore body.
Fenix has now shipped around 1.84 million wmt of product from its Iron Ridge project since the first shipment in early 2021.
Notably, the company generated around $15 million in net operating cash flow which resulted in a cash balance of $101.9 million at the end of the June quarter.
Importantly, Fenix Resources expects earnings to further increase in future after consolidating a 100 per cent ownership in Fenix-Newhaul.
Fenix-Newhaul was a 50:50 joint venture transport company established by Fenix and Newhaul in October 2020, however, during the recent June quarter Fenix signed a deal with Newhaul to acquire its 50 per cent interest and gain full ownership in the haulage business.
“The Fenix-Newhaul transaction is an important strategic initiative that will reduce our future haulage costs and result in cost savings and additional operational flexibility as well as supporting growth initiatives,” FEX Managing Director Rob Brierley said.
Fenix-Newhaul hauled 340,000 tonnes of iron ore during the quarter. After a successful trial period last year, the subsidiary has converted most of its haulage fleet to a quad-trailer which will increase capacity to approximately 140 tonnes per truck, delivering cost savings on a per-tonne basis.
Company shares were up 1.69 per cent to close at 30 cents.