- Fenix Resources (FEX) has reached one million dry metric tonnes of ‘high-grade’ iron ore sales from its Iron Ridge project in WA
- The company has a reported net operating margin of approximately $64 per dry metric tonne shipped
- This milestone reportedly triggers the conversion of 30 million class B performance shares into ordinary ones as part of the terms signed at the time of acquiring the project
- Fenix plans to commence business reviews in the current quarter
- Shares are trading steady at 23 cents
Fenix Resources (FEX) has announced it has reached one million dry metric tonnes of ‘high-grade’ iron ore sales from its Iron Ridge project in Western Australia.
The unaudited net operating margin for the first one million dry metric tonnes of iron ore sold from Iron Ridge has reportedly been calculated to approximately $64 per dry metric tonne shipped.
Fenix acquired a 100 per cent interest in the high-grade Iron Ridge iron ore project in May 2018 for share based consideration of 25 million ordinary shares plus 112.5 million performance shares. As part of the acquisition, the performance shares have milestones upon which they convert to ordinary shares.
The company says reaching this sales milestone, which has been achieved in less than 10 months from the first sale, triggers the conversion of 30 million class B performance shares into ordinary shares.
Fenix Managing Director Rob Brierley said he’s proud of the company’s hedge position of approximately $52 million.
“Although current macroeconomic conditions in the iron ore industry have been challenging in the last few months, we are maintaining a solid production and sales
profile supported by our hedge position”.
Fenix plans to commence business reviews in the current quarter to optimise the current operational strategy and evaluate synergistic growth opportunities.
Shares were trading steady at 23 cents at 12:33 pm AEDT.