Fenix Resources (ASX:FEX) reports it has achieved a ‘significant’ milestone of producing and selling two million dry metric tonnes of iron ore from its flagship Iron Ridge Iron Ore Project in Western Australia’s midwest region.
The unaudited net operating margin for the two millionth tonne has averaged $56 (USD) per tonne and was shipped in mid-September from the company’s facilities at the Geraldton Port.
It is also noted that this ‘significant’ milestone was achieved nineteen months following the first sale of product from Iron Ridge in February 2021.
Commenting on the achievement, Fenix Resources Chairman, John Welborn, stated: “The production and sale of two million tonnes of high-quality iron ore products from Iron Ridge is an outstanding achievement.
In less than two years Fenix has established a highly profitable business in the Mid-West which has created more than 200 new jobs and generated more than $100 million in cumulative net profits after tax. I commend the entire Fenix team of committed staff and contractors who have worked hard to mine, haul and ship the 2 million tonnes.
“The production and sale of two million tonnes of high-quality iron ore products from iron ridge is an outstanding achievement”
Fenix is maintaining consistent operating production at a run rate of approximately 1.3 million tonnes of iron ore per annum and is working to deliver C1 FOB Cash Costs below US$60 per tonne. We have a strong hedge position out to June 2023 and are well placed to continue the Company’s excellent production and sales performance and, importantly, deliver outstanding returns for shareholders.”
The company also notes that the cumulative milestone of shipped iron ore production is now fully verified, resulting in a conversion of 37.5 million Class C performance shares to ordinary shares in Fenix.
The only remaining outstanding vendor performance shares are now the 30 million Class D performance shares, which will be converted following the company’s achievement of 3 million dry metric tonnes of shipped iron ore at a net margin of greater than $15 (USD) per tonne.
In addition, profitable iron ore production and sales are continuing at a steady state of 1.3 million tonnes per annum, and are generating strong operating margins and valuable hedge positions.
Fenix Resources is an ASX-listed ‘high-grade’, high margin iron ore producer located in the prolific midwest mining region on Western Australia.
The company’s Iron Ridge Iron Ore Project is located about 67km northeast of the township of Cue in WA’s Murchison region and is a premium DSO deposit that currently boasts a ‘high-grade’ JORC 2012 compliant Mineral Resource Estimate (MRE) of 8.3Mt at 64.8% Fe, which represents some of the highest grade iron ore produced in Western Australia. Fenix currently holds 100% interest in the Iron Ridge Iron Ore Project.
Fenix announces that it continues to explore opportunities that will build on its existing mining and logistics platform, with a goal of delivering growth and additional value to its shareholders.
Images: Fenix Resources Ltd