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Source: Fenix Resources
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  • 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
  • Fenix shares are up 3.77 per cent and trading at 27.5 cents each at 11:07 am AEST

Iron ore miner Fenix Resource (FEX) has announced its first dividend policy as it flags some sturdy annual earnings and profits for the 2021 financial year.

While Fenix is yet to release its audited financial results, the company gave investors a snapshot of what to expect.

According to Fenix, the company tabled $113 million in annual sales revenue, resulting in net profit before tax of some $62 million. Unaudited headline net profit after tax (NPAT) came in at $49 million for the 2021 financial year.

In light of this, Fenix’s board has declared that to the extent dividends can be fully franked, the company will return between 50 per cent and 80 per cent of after-tax earnings to shareholders as dividends — either as a single dividend each year or as a half-year and final dividend.

Fenix Managing Director Rob Brierley said the company’s financial year results showcased the “rapid and relatively seamless” execution of its project delivery strategy.

“We have hit the ground running and taken advantage of robust iron ore prices,” Mr Brierley said.

“The iron ore swap arrangements we entered into in July are already in the money and these arrangements secure Iron Ridge’s future for FY22 and beyond.”

These iron ore swap arrangements cover 50,000 tonnes of material per month calculated at the average monthly iron ore 62 per cent Fe futures index (Platts IODEX) and converted to Australian dollars.

Effectively, this equates to around 45 per cent of Fenix’s planned production from its flagship Iron Ridge project for the 12 month period, fixed at $230.30 per dry metric tonne for the whole 12 months.

This fixed price bodes particularly well for the company in light of a crashing iron ore price over the weekend. The benchmark Chinese spot price for iron ore dropped more than US$20 (A$28) per tonne on Friday to just over US$130 (A$182) per tonne on Friday.

This is a far cry below the commodity’s record highs of over US$230 (A$322) per tonne in mid-May.

Fenix said it planned to release its audited 2021 financial year results in mid-September, with its maiden dividend to be declared as part of the report.

Investors reacted well to today’s news, with Fenix shares up 3.77 per cent and trading at 27.5 cents each at 11:07 am AEST.

FEX by the numbers
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