FEX - Fenix Resources

[The Triangle]

https://www. afr .com/companies/mining/bhp-iron-ore-output-slumps-20211018-p59120

Further news confirming the "big boys" aren’t increasing iron ore supply any time soon.

Reckon that iron ore prices likely to rebound strongly next year after the Winter Olympics in February '22 imo

Last time the Olympics finished in China....iron went bad....

Fex has a tonne of options out there - I thought there were 30 million due to be cashed once there was 1 million tonnes shipped - which should have happened in the past 6 weeks?

What have I missed? Shouldn't we be seeing someone converting them by now?

 

[The Triangle]

Politics....

FEX nearly had strike 1 at the AGM and two directors effectively voted out - wonder who was orchestrating this? 75 million votes against these people were not just moms and dads. FEX has really done nothing wrong lately other than being in iron ore during a drop, so there must be some serious issues with FEX, or some big holders and/or the board/executive. Not usually a good sign. I have a feeling that someone is working very hard to get that money out of FEX (maybe an acquisition of junk?). Doubt shareholders will see much more returned via dividends. New chairman must have been part of a planed regime change.

FEX now off my watch list for a while.

 

[davizr]

FEX down -24% on earnings report today. yikes.

 

[Go Figure]

FEX is my July ‘22 Tipping Competition entry.

FEX is a well managed business, has a healthy Balance Sheet, continues to reduce operating costs and is maintaining a sensible IO hedging sales policy.

 

[frugal.rock]

Nothing like a near %15 divvy to hold up the price on a down day, yikes.

 

[wayneL]

Disclaimer: FA isn't really my thing, so struggling with the valuation on this one.

PE 2.7?
Div 23ish%

What am I missing?

 

[divs4ever]

Fenix Resources secures Mid-West iron ore and port assets in “game-changing” transaction

Fenix Resources secures Mid-West iron ore and port assets in “game-changing” transaction By Proactive Investors

Fenix Resources secures Mid-West iron ore and port assets in “game-changing” transaction

au.investing.com

now i already hold MGX , which will become a new major holder

FEX is my selection for the comp. hoping the bigger layers to take time to get their head around the move ( and move the price next week )

if the FEX wallows lower i will start crunching some numbers with a possible nibble or two

 

[divs4ever]

FENIX EXTENDS HEDGING TO JUNE 2024 25,000 TONNES PER MONTH AT A$163.50/T FROM JANUARY TO JUNE 2024

Fenix Resources (ASX: FEX) (Fenix or the Company) is pleased to advise the Company has taken advantage of current iron ore market strength to secure further iron ore hedging contracts for a total of 150,000 tonnes of iron ore, structured as 25,000 tonnes per month from January 2024 through to June 2024 at a fixed price of A$163.50 per tonne.
These new contracts have been added to the Company’s current iron ore hedge book of 240,000 tonnes consisting of 60,000 tonnes per month until December 2023 at a fixed price of A$170.10 per tonne.
Fenix’s iron ore hedging arrangements consist of swap contracts between Fenix and Macquarie Bank Limited which are cash settled at the end of each month for an amount equivalent to the difference between the fixed price of the contracts and the Monthly Average Platts TSI 62 Index converted to Australian dollars (A$).
Fenix’s hedging arrangements are consistent with the Company’s Price Protection Policy designed to support the medium-term profitability of production whilst maintaining positive exposure to iron ore prices.

Authorised by the Board of Fenix Resources Limited.

i hold FEX and MQG

 

[divs4ever]

Fenix Resources Ltd (ASX:FEX) – Request for trading halt Pursuant to ASX Listing Rule 17.1,
Fenix Resources Ltd (Company) requests an immediate trading halt be granted by ASX in respect of its ordinary shares. In accordance with ASX Listing Rule 17.1, the Company provides the following information:
1. Reason for trading halt – the trading halt is requested pending the release of announcements in relation to a material right to mine transaction (Announcement).
2. Duration of the trading halt – the Company anticipates that the trading halt will remain in place until the earlier of such time as it makes the Announcement and the commencement of trading on Wednesday, 4 October 2023.
3. Termination of the trading halt – the Company anticipates that the trading halt will cease upon the Company making the Announcement. 4. No reason – the Company is not aware of any reason why the trading halt should not be granted.
5. Further information – the Company is not aware of any other information to inform the market about the trading halt.


i hold FEX

 

[divs4ever]

FENIX ACQUIRES 10 MILLION TONNE RIGHT TO MINE OVER HIGH-GRADE WELD RANGE IRON ORE DEPOSIT Targeting Production Growth and Mine Life Extension
HIGHLIGHTS
• Binding agreement signed with Sinosteel Midwest Corporation securing the exclusive right to mine and export up to 10 million dry metric tonnes of iron ore from the high-grade Beebyn-W11 iron ore deposit in the Weld Range.
• The Beebyn-W11 iron ore deposit has a JORC 2012 compliant total Measured and Indicated Mineral Resource Estimate of 20.5 million tonnes at a grade of 61.3% Fe.
• Beebyn-W11 iron ore deposit is located only 20 kilometres from Fenix’s current mining operations at the Iron Ridge Iron Ore Mine allowing for significant operational synergies for future mining activity and the utilisation of the Company’s existing infrastructure and regional transport and logistics capabilities.
• The Transaction significantly increases Fenix’s portfolio of Mid-West iron ore projects with mineable, attributable Mineral Resources, which includes the Iron Ridge Iron Ore Mine, the Shine Iron Ore Mine, and the Beebyn-W11 iron ore deposit.
• Acquisition cost of $1 per tonne plus a Base Royalty and a variable Profit Share Royalty. Cash consideration of $10 million to be paid as $5 million cash on signing and $5 million cash upon receipt of approval of a Mining Proposal for Beebyn-W11.
• Fenix will maintain exclusive sole control of all mining, hauling, logistics and port operations relating to the mining and export of 10 million dry metric tonnes of iron ore.
• Fenix has demonstrated an ability to rapidly and successfully develop a Weld Range direct shipping ore project into production and has the advantage of existing highly efficient, inhouse mining, haulage and port capabilities.
• Securing the 10 million tonne Right to Mine from the high-grade Beebyn-W11 iron ore deposit follows the Company’s acquisition of Mount Gibson’s Geraldton Port infrastructure and the consolidation of the Fenix-Newhaul business, with Fenix targeting growth in iron ore production as well as further cost reductions from economies of scale.
• The Company intends to immediately progress required approvals with the expectation that mining activities will commence at Beebyn-W11 during 2024.
• The Right to Mine agreement continues the strong partnership between Fenix and the Sinosteel Group and provides scope for the parties to investigate further opportunities to monetise high-value projects within the vast resource rich Mid-West region.
Fenix Resources Limited (ASX:FEX) (Fenix or the Company) is pleased to announce execution of definitive documents with Sinosteel Midwest Corporation Limited (SMC) for the ASX:FEX | fenixresources.com.au 2 exclusive right to mine and export up to 10 million tonnes of iron ore from the high-grade Beebyn-W11 iron ore deposit (the Transaction or Right to Mine).
The form of the Right to Mine provides Fenix with 100% control of all mining and export activities and allows the Company to take 100% of the net profits after the payment of royalties to SMC.
The Right to Mine allows for Fenix to mine and sell up to 10 million dry metric tonnes of ore from Beebyn-W11 within a 10-year term from commencement. Beebyn-W11 has a JORC 2012 Measured and Indicated Mineral Resource Estimate of 20.5 million tonnes at a grade of 61.3% Fe (see Table 1 below for detail). Fenix's due diligence indicates that the resource can be mined in a similar manner to the Company’s existing operations at Iron Ridge. The Transaction consideration payable by Fenix to SMC comprises:
• An upfront payment of $5 million in cash upon execution of definitive documents;
• $5 million milestone cash payment, payable upon receipt of mining approvals;
• a fixed $2 per tonne Base Royalty payment; and
• a variable Profit Share Royalty based on a share of notional profit, calculated as actual revenue received for Beebyn-W11 shipments, less certain actual costs, less a fixed margin (as detailed below).
The low upfront consideration and variable royalty structure reflects SMC’s desire to maintain upside exposure to Beebyn-W11 and share in the benefits of Fenix’s established logistics experience and infrastructure.

i hold FEX

 

[divs4ever]

FENIX IMPROVES HEDGE BOOK 420,000 TONNES OF IRON ORE HEDGED AT A$170/T OUT TO JUNE 2024

Fenix Resources (ASX: FEX) (Fenix or the Company) is pleased to advise the Company has added additional iron ore hedging contracts for a total of 90,000 tonnes of iron ore, structured as 15,000 tonnes per month from January 2024 through to June 2024.

These new contracts add to the Company’s existing iron ore hedge book which now comprises a total of 420,000 tonnes, structured as 60,000 tonnes per month until December 2023 at a fixed price of A$170.10 per tonne and 50,000 tonnes per month from January to June 2024 at a fixed price of A$170.25 per tonne.

Fenix has taken advantage of the current strength in iron ore markets to improve the Company’s hedge book. The additional hedging is consistent with the Company’s Price Protection Policy designed to support the strong cashflow generation and profitability Fenix generates from ongoing steady production volumes from the Company’s 100% owned Iron Ridge Iron Ore Mine.

The improved hedge book now represents slightly less than 50% of planned production from Iron Ridge which secures a strong positive cashflow margin on a base level of production whilst maintaining positive exposure to spot iron ore prices. Fenix’s iron ore hedging arrangements consist of swap contracts between Fenix and Macquarie Bank Limited which are cash settled at the end of each month for an amount equivalent to the difference between the fixed price of the contracts and the Monthly Average Platts TSI 62 Index converted to Australian dollars (A$). Authorised by the Board of Fenix Resources Limited.

i hold FEX and MQG

 

[divs4ever]

STRONG PERFORMANCE AND EARNINGS GROWTH HIGHLIGHTS
• Record Half Year Revenue of A$126.9m for H1 FY24, up 49% from H1 FY23
• EBITDA of A$42.8m, up 110% from H1 FY23
• Net Profit After Tax of A$22.1m, up 102% from H1 FY23
• Iron Ore Shipments increased by 119% to 1.4Mt
• Average price received of US$130/dmt CFR
• Iron Ridge C1 Cash costs down 5% to A$77.1/wmt (US$50/wmt) FOB
• C1 Operating Margin for Iron Ridge achieved of A$90/wmt
• Cash as at 31 December 2023 of A$63.5m
• Fully franked FY23 final dividend of 2 cents per share paid in September 2023
• Hedge protection in place to June 2024 - 50,000 tonnes per month at a fixed price of A$170.25/dmt
• Strong outlook for positive Full Year Results based on production growth and excellent performance across the Fenix business

MANAGEMENT COMMENTARY
Fenix Executive Chairman, Mr. John Welborn, said: “Fenix is on track to deliver an excellent full-year performance.
The Half Year we have reported on today represents a transformational period for our Company with the establishment of an independent logistics business and port services business as part of our fully integrated mining, haulage and port operations.
Our teams continue to reduce costs and we are taking full advantage of strong iron ore markets to generate record sales volumes, increase revenues, and deliver excellent profitability
. We are making substantial progress towards growing our iron ore production and expanding our logistics customer base, to ultimately be operating a major regional mining and logistics business in the Mid-West. Fenix is well positioned to drive our growth aspirations and ultimately deliver exceptional value for shareholders.
” HALF YEAR FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2023

29 February 2024 Fenix Resources Half Year Financial Results 29 February 2024 2 ASX:FEX fenixresources.com.au Fenix Resources Limited (ASX: FEX) (Fenix or the Company) is pleased to announce the Company’s financial results for the Half Year ended 31 December 2023 (H1 FY24).

Total revenue generated during the Half Year was up 49% to A$126.9 million which enabled Fenix to deliver Half Year earnings before interest, tax, depreciation and amortisation (EBITDA) of A$42.8 million, up 110% from the prior corresponding period (H1 FY23).
Fenix shipped a total of 1,446,190 wet metric tonnes (wmt) of iron ore during the six-month period.
This was made up of 705,786 wmt of iron ore produced and sold from the Company’s 100% owned Iron Ridge Mine and 740,404 wmt of third party iron ore stored and loaded by the Company’s Fenix Port Services business.
Consistent production performance from Iron Ridge enabled Fenix to load 12 ships with 373,489 wmt of Iron Ridge lump product and 332,297 wmt of Iron Ridge fines product.
The average price received by Fenix during H1 FY24 for products from Iron Ridge, not including hedging and quotation period adjustments, was US$130/dmt CFR, equivalent to A$172/dmt on a FOB basis.
This compares to the average Platts 62 Index price during the period of US$121/dmt CFR.
The strong above-index price performance of Fenix products was supported by the excellent high grade product specifications and the ability to maximise lump production.
Fenix’s active hedging program continues to manage iron ore price risk and protect the Company’s operating margins.
The Company extended the hedge book during the period, with the addition of swap contracts for 50,000t per month from January 2024 through to June 2024 at a fixed price of A$170.25 per dmt. C1 cash costs for H1 FY24 averaged A$77.1/wmt, representing a reduction of 5% compared with H1 FY23 (A$81.25/wmt) and a 15% reduction from H1 FY22 (A$90.52/wmt).
The reduction in operating costs was achieved through the additional economies of scale via the expansion of Fenix’s port services operations and the significant efficiencies achieved via the consolidation in ownership of the Fenix-Newhaul haulage and logistics business.
Excellent operating performance, business growth, and the Company’s ongoing ability to reduce costs in the prevailing strong iron ore price environment, generated a pleasing Net Profit after Tax for the Half Year of A$22.1 million, up 102% from H1 FY23. As at 31 December 2023, Fenix held A$63.5 million in cash.
The Company is maintaining a strong balance sheet despite incurring significant non-operational cash outflows during the six-month period of more than A$40 million ($14 million in shareholder dividends, A$17m in net capital expenditure and A$10 million in tax).

Fenix’s dividend policy states that the Company will consider the declaration of a dividend on an annual basis based on the full financial year profitability of the Company and with regard to the future funding requirements of the business and the availability of franking credits.
Based on the Full Year FY23 Net Profit After Tax of A$29.3 million,
Fenix declared a final fully franked dividend of 2.0 cents per share.
This final dividend for FY23 was paid to shareholders on 15 September 2023.
For complete details of the Company’s financial performance for the Half Year ended 31 December 2023, please refer to the Appendix 4D and the Interim Financial Report for the Half Year Period ended 31 December 2023 released to the ASX today and available on the Company’s website.

Authorised by the Board of Fenix Resources Limited

i hold FEX

careful now , this years profits might be absorbed by bedding in the new assets and infrastructure ( and maintenance )

 

[divs4ever]

FENIX SECURES NEW $70 MILLION HAULAGE AND LOGISTICS CONTRACT

HIGHLIGHTS
• Fenix-Newhaul and Fenix Port Services appointed as haulage and logistics services providers for regional iron producer Gold Valley’s Mid-West iron ore operations
• Binding terms agreed for Haulage and Port Logistics services which will generate more than $70 million in additional revenue to Fenix over the three-year contracted term, with the option to extend the term by mutual agreement
• Inland port terminal to be developed on Fenix’s landholding at the Ruvidini Rail Siding to enable the delivery of Gold Valley iron ore products which will be hauled by Fenix-Newhaul to the Fenix Port Services facilities at Geraldton Port for ship loading and export
• Fenix will provide logistics services for 3 million tonnes of iron ore over a threeyear period commencing from the date Ruvidini Rail Siding has been recommissioned as an inland port, anticipated to occur prior to June 2024
• The new Fenix inland port at Ruvidini will facilitate highly efficient road and rail haulage transport solutions for regional Mid-West bulk commodity producers with the advantage of integrated port solutions for efficient product storage, ship loading and export
• Fenix continues to explore opportunities to unlock value from regional Mid-West resource projects by the provision of Fenix’s unique integrated mining, logistics and port services capabilities

Commenting on the new $70 million haulage and logistics Agreements, Executive Chairman of Fenix, Mr John Welborn, said: “Fenix is building a significant third-party logistics business which will generate excellent returns for shareholders as well as creating an exciting platform to unlock further value by increasing the Company’s production and export capacity. “Gold Valley has recently acquired one of the largest iron ore projects in the Mid-West and represents a perfect logistics partner for Fenix. The partnership has the potential to provide long term benefits to both Fenix and Gold Valley as both companies promote economic growth in the Mid-West. “The establishment of an inland port at our Ruvidini Rail Siding property will create another valuable strategic infrastructure asset for Fenix. An inland port will create the immediate ability to flexibly manage tonnage stored and shipped through Fenix’s facilities at Geraldton Port, expanding the ultimate throughout capacity of these on-wharf facilities. Ruvidini will also provide infrastructure for Fenix to store, stage, and blend ore products produced from our own mining operations as well as providing the potential for future access to rail haulage into Geraldton and facilitating significantly more efficient and safer road haulage solutions by cutting travel times and enabling better coordination and management. “The Agreements with Gold Valley provide an immediate boost to Fenix’s revenues and are a pleasing expansion of our third-party logistics business. We continue to seek opportunities in the Mid-West to use the Company’s unique mining, haulage and logistics capacities to unlock value from regional projects.


part of a much longer release

i hold FEX