The John Welborn-chaired company managed an additional cargo for the period, with six shipments dispatched and 350,923 tonnes sold, and while C1 cash costs increased back to the A$84/t level reported six months ago shipping costs fell further to $25/t.

 

The around $8/t saving on export costs, combined with a higher average price for production from its Iron Ridge mine in Western Australia's Mid West region, boosted its C1 margins by 85% to $71/t.

 

It booked A$20 in free cash flow, boosting cash at bank to $69 million. Post-quarter it received payment for an additional cargo worth $9.3 million.

 

Income for the rest of the year looks to be robust as its hedge book with Macquarie Bank has been extended, with 50,000t per month fixed at $173.25/t until June and 40,000tpm from July at $173.38/t.

 

The fully integrated mining, haulage and logistics operation is pre-stripping at Iron Ridge as it prepares for an extension of the high-grade direct shipping ore operation. 

 

With significant cost savings continuing to flow from its Newhaul business, and average costs of US$54/t since mining started, the company is well placed to enjoy periods of high iron ore pricing, and remain profitable during flatter periods, such as that seen in the December quarter when the commodity was US$101/t.

 

Fenix continues to examine the surrounding Pharos leases and other opportunities in the Mid West.

 

The company is expected to pay a third dividend at the end of the financial year, following August 2022's 5.25c per share.

 

Its dividend policy is to distribute 50-80% of post-tax profits to shareholders, subject to the availability of franking credits.

 

The stock has ebbed and flowed with iron ore pricing, and has traded between 19.7-37c over the past 12 months.

 

Fenix was up 5% today to 25c, capitalising it at $161 million.