Fenix flies with full-year results

Fenix Resources (ASX:FEX) produced and sold 1.36 million tonnes of iron ore in FY23 generating annual sales revenue of $196.8 million and delivering a net profit after tax of $29.3 million.

In its financial results for the year ended 30 June 2023 released today (29 August 2023), the company has declared a final fully franked dividend of $0.02 per share for FY23.

Fenix shipped 1.36 million wmt of ‘high-quality’ iron ore from its 100% owned Iron Ridge Mine, consisting of about 546,000 wmt of lump iron ore at an average grade of 64.4% Fe and 798,000 wmt of fines at an average grade of 62.7% Fe.

Fenix says the “unique high-grade, high-quality iron ore from Iron Ridge continues to attract strong demand from a broad range of international customers”.

Total sales revenue for FY23 was $196.8 million which, the company reports despite the slight increase in production, was down from the $249.2 million received in FY22 as a direct result of a 14% decline in the average AUD iron ore price received.

In FY23, Fenix received an average iron ore price of US$113 per dmt (equivalent to $167/dmt) compared to the average iron ore price received of US$141 per dmt in FY22 (equivalent to $194/dmt).

Facing challenging iron ore price conditions during the year, Fenix says it implemented a range of strategies to reduce costs and protect operating margins while maintaining steady state production from the Iron Ridge Mine.

Fenix has now shipped more than 3 million tonnes of iron ore from the Iron Ridge Mine at an average operating margin, excluding hedge and quotation period adjustments, of more than $50 per dmt.

Based on production performance and the maintenance of strong operating margins, Fenix’s NPAT for FY23 was $29.3 million.

As of 30 June 2023, Fenix had $76.3 million cash at hand.

Write to Adam Orlando at Mining.com.au

Fenix Resources
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Written By Adam Orlando
Mining.com.au Managing Editor Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Adam has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.