Fenix ​​Resources (ASX:FEX) Releases Quarterly Update – The Market Herald

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  • Fenix ​​Resources (FEX) sold approximately 344,000 wet metric tons (wmt) of iron ore from its Iron Ridge project during the June quarter
  • This brings the total amount shipped to 1.84 million rpm from the WA project since the first shipment early last year
  • The company generated approximately $15 million in free operating cash flow, resulting in a cash balance of $101.9 million at the end of the June quarter.
  • Fenix ​​also increased its 50% stake in the haulage business, Fenix-Newhaul, to 100%, which should further boost the company’s profits.
  • Shares of the company rose 1.69% 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 approximately 344,000 wet metric tonnes (wmt) across six shipments of iron ore from the Iron Ridge project in Western Australia. This represents an increase of almost 50,000 mtm compared to the previous quarter.

The average grade shipped was 62.1% iron for fines, compared to 61.6% in the March quarter, and 63.6% iron for lump products, compared to 63.9% in the prior quarter. The company said this shows the “unique, high-grade, high-quality nature” of the Iron Ridge orebody.

Fenix ​​has now shipped approximately 1.84 million tonnes of product from its Iron Ridge project since the first shipment in early 2021.

Notably, the company generated approximately $15 million in free operating cash flow, resulting in a cash balance of $101.9 million at the end of the June quarter.

Above all, Fenix ​​Resources expects its profits to increase further in the future after consolidating a 100% stake in Fenix-Newhaul.

Fenix-Newhaul was a 50/50 transportation joint venture formed by Fenix ​​and Newhaul in October 2020, however, in the recent June quarter, Fenix ​​signed an agreement with Newhaul to acquire its 50 % and acquire full ownership of the transport business.

“The Fenix-Newhaul transaction is an important strategic move that will reduce our future transportation costs and result in cost savings and additional operational flexibility, as well as supporting growth initiatives,” said FEX’s chief executive. , Rob Brierley.

Fenix-Newhaul transported 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 around 140 tonnes per truck, delivering cost savings per tonne.

Shares of the company rose 1.69% to close at 30 cents.

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