FEX - Fenix Resources

[Telamelo]

Australian Financial Review article from this evening says it all

Bonanza for iron ore miners​

https://www.copyright link/companies/mining/bonanza-for-iron-ore-miners-20210420-p57ksi

 

[Telamelo]

FEX as strong as a bull

FEX Share Technical Analysis | Fenix Resources Limited

Current Technical Analysis and interactive chart for $FEX stock / shares. See the current trading strategy, trend(s), rating and buy and sell signals.

asx.swingtradebot.com

Cheers tela

 

[Telamelo]

4 reasons why iron ore could surpass $230 per tonne!

The price of high-grade 65% Fe iron ore fines looks set to break through the $230-per-tonne-cfr-Qingdao price ceiling amid tight supply of seaborne cargoes and hefty mill margins, industry sources told Fastmarkets.

https://www.metalbulletin.com/Artic...why-iron-ore-could-surpass-230-per-tonne.html

Back of envelope FEX calc. over my morning coffee

5 boats, 50,000 tonnes each, $167/tonne less $14/tonne freight, times (1/.77) USD:AUD is about $50M revenue this quarter alone!

 

[Telamelo]

FEX ripper quarterly out.. jumped to 0.33c +11.86% on open... it will make about half of it's market cap in net profit $$ within 3 months time from now

 

[Sean K]

FEX ripper quarterly out.. jumped to 0.33c +11.86% on open... it will make about half of it's market cap in net profit $$ within 3 months time from now

So, what's the price earnings ratio at this MC? Must be negative 40%? eeeek

 

[Beaches]

So, what's the price earnings ratio at this MC? Must be negative 40%? eeeek

At .31c the market cap would be $141mil
Shipping of ore started in Feb and on target for 1.25mtpa

Current C1 costs of US$72/t which they expect to get down to US$65/t over the next 2 quarters. Taking a guess on other costs a very conservative AISC is likely to be around US$90/t once the cost savings kick in over the next 2 quarters

Average selling price for the current quarter was US$156/t and the current spot price is much higher.

Using a conservative average selling price of US$150/t, less ASIC of US$90/t gives them a profit of US$60/t by 1.25mt is US$75mil or A$96mil gross profit for the 12 months.

Some of this will be spent on exploration of the current and new tenements but should leave NPAT of at least A$50mil pa giving them a PE of around 3 at a share price of .31c

 

[Beaches]

Fenix has now moved up to 0.37c and a market cap of $172mil

If the iron ore price stayed at its current level, Fenix would be looking at a profit in the next 12 months of around $155mil, almost equal to its market cap.

 

[Sean K]

Fenix has now moved up to 0.37c and a market cap of $172mil

If the iron ore price stayed at its current level, Fenix would be looking at a profit in the next 12 months of around $155mil, almost equal to its market cap.

Getting back to new highs. Been a great 2 years. On the surface of it, this is extraordinarily cheap, if IO doesn't collapse.

 

[Beaches]

Quarterly reports out today

Cash at bank rose from $26mil to $69mil with an average price received for the quarter of US$185/t

Next quarter will have higher expenditure on exploration of their new tenements but with the price of iron ore firmly above $200/t they will likely bank another $45mil in the September quarter.

They are on track for cash at bank of $135mil in September and $180mil in December, which is too much cash for a market cap of $200mil @ 42c

The quarterly reports stated they are looking at their options for capital management and I would expect a healthy dividend or return of capital to be announced with the full year report in August or September.

Next to report of these junior DSO miners that have only just starting shipping is GWR. While GWR's numbers might not be quite as good as FEX, they will still be very good and they also have a much lower market cap at only $116mil.
.

 

[Telamelo]

FEX nudged 0.255c lows today picked up more at 10% discount so happy with that

They have a much higher Iron Ore hedging fixed price commencing from 01st October '21

DYOR .. Cheers tela

 

[Telamelo]

• Fenix Resource (FEX) announces its first dividend policy as it flags some sturdy annual earnings and profits for the 2021 financial year
• Accord to Fenix, unaudited sales revenue hit $113 million over FY21, with net profit after tax at $49 million
• Fenix says to the extent dividends can be fully franked, it plans to return between 50 per cent and 80 per cent of after-tax earnings to shareholders
• The company plans to release its audited 2021 financial year results in mid-September, with its maiden dividend to be declared as part of the report

 

[Telamelo]

" With an unaudited headline NPAT of $49 million and market capitalisation of ~$132 million, this implies a price-to-earnings ratio of just 2.55 and a potential dividend yield between 19.58% and 30.6%. "

*Excerpt from Motley Fool

 

[Telamelo]

" With an unaudited headline NPAT of $49 million and market capitalisation of ~$132 million, this implies a price-to-earnings ratio of just 2.55 and a potential dividend yield between 19.58% and 30.6%. "

*Excerpt from Motley Fool

Cash cow FEX moving up nicely @ 0.285c +7.55%

 

[Telamelo]

Dalian Iron Ore futures shot up +6% strong bullish close

China thankfully recorded zero delta cases today so refocused on stimulus to get their economy going again which is driving up commodities, especially iron ore.

 

[Telamelo]

FEX @ 0.30c +7.14% already

Share price crossed back above it's 200dma of 0.28c (very bullish indeed imo)

Big fully franked dividend to be declared in a couple of week's from now..

 

[Telamelo]

Cash cow Fenix Resources FEX looks good to crack 0.30c+ in the day's ahead imo

It has reclaimed/crossed above it's 200dma of 0.28c over last couple of day's which is bullish.

Big juicy fully franked dividend to be declared in 2 week's time that will put other iron ore miner's to shame so to speak

DYOR .. Cheers tela

 

[Telamelo]

Iron ore creeps higher on China steel demand optimism

https://www.hellenicshippingnews.com/iron-ore-creeps-higher-on-china-steel-demand-optimism/

 

[Telamelo]

FEX building @ 0.30c +5.26% let's hope/see if it can crack & hold 0.30c+ over these coming day's..

 

[Telamelo]

Great to see a bullish close with FEX @ 0.305c +7.02 %

 

[The Triangle]

Great to see a bullish close with FEX @ 0.305c +7.02 %

Iron is as cold as ice right now but FEX looks good at 28 cents.

~ 1.25mta operation.
Market Cap: 130 million
No significant debt
Cash on hand: 70 million
50% of production next year hedged at $280/tonne
Producing high grade iron (64%) - not that low grade junk.

So - based on some quick back of the envelope analysis - Even if Iron goes to zero dollars - they could pull in $175M revenue - and probably have $135M in costs (say $100/tonne + some capex) leading to a $40 M positive cashflow this time next year... the EV right now at 28 cents is $60 million.

I like the board - looks like all Iron ore people... so they should know what they are doing.