The Fenix Resources Ltd (ASX: FEX) share price is all over the map this morning.

After leaping 7% higher in early trade, shares in the ASX resource explorer are currently up 1.8%, at just under 30 cents per share.

There's been plenty of investor interest, with more than $3.1 million worth of trades taking place so far today.

Below we look at the activities report for the quarter ending 31 March that looks to be moving the Fenix Resources share price.

What did Fenix report for the quarter?

The Fenix Resources share price is in the green after the company reported it had shipped some 295,000 wet metric tonnes (wmt) of high-quality iron ore from its Iron Ridge project, located in Western Australia, over the three months.

It received an average price for the iron ore of US$132.83 (AU$183) per dry metric tonne (dmt) free on board (FOB).

Fenix ended the quarter with net cash of $85.6 million, up from $54.9 million as at 31 December last year. That works out to 16.6 cents per share, and management said it "expects to build on this solid position during the current quarter".

Commenting on the quarter just past, Fenix Resources managing director Rob Brierley said:

A strong recovery in the iron ore price and a decrease in shipping costs has seen us generate some $31 million of cash for the quarter underpinned by a solid production performance.

Fenix also benefited from some positive pricing adjustments from the December 2021 quarter, which validated our decision to operate at close to full capacity, despite the price weakness during that period.

Looking ahead, Brierley added: "The current quarter has started positively with strong iron ore prices, and a shipment completed loading on 2 April 2022."

The company expects six shipments in the June quarter.

As for dividends, the company's last full year dividend, paid in September 2021, gives it a trailing dividend yield of 18%. A juicy yield that could be helping support the Fenix Resources share price.

Fenix did not pay an interim dividend, as its policy is to distribute 50% to 80% of its after-tax profits as fully franked dividends and there were no franking credits available. Management will announce its decision on the full-year dividend for FY22 in August.

Fenix Resources share price snapshot

The Fenix Resources share price is up 18% since this time last month. By comparison, the All Ordinaries Index (ASX: XAO) has gained 4% over that same period.

The post What's moving the Fenix Resources share price higher today? appeared first on The Motley Fool Australia.

The Fenix Resources Ltd (ASX: FEX) share price is struggling through September despite only good news being released by the company.

Fenix released its annual results and news of its maiden dividend on 15 September. At the time, its maiden dividend saw the iron ore producer with a massive 16.6% dividend yield.

However, that same notable dividend might have been the downfall of the Fenix share price. It fell 23% on its ex-dividend date.

At the time of writing, the Fenix share price has recovered slightly. It is currently trading at 23 cents, 20.69% lower than at the end of August.

Let's take a closer look at the news that's been driving the mineral explorer's stock lately.

The month so far for Fenix

The Fenix share price is battling through a tough month despite posting a massive 16.6% dividend yield.

Fenix announced its profits and dividend for financial year 2021 last fortnight.

Over the 12 months ended 30 June 2021, the company sold 501,000 wet metric tonne of iron ore from its flagship Iron Ridge iron ore project. Production at the project began in December 2020, and its first sales occurred in February 2021.

As a result, Fenix boasted a $49 million net profit after tax for financial year 2021. Of its $49 million of profits, Fenix committed to paying out $24.8 million to its shareholders.

That represents a maiden dividend payment of 5.25 cents per share.

The Fenix share price gained 13% on the back of its annual results. Unfortunately, it fell 23% when the company surpassed its ex-dividend date on 20 September.

The company's dividend will be paid out to shareholders on 5 October.

Fenix share price snapshot

This month's drop has put Fenix's stock into the red on the ASX.

Right now, it is 4% lower than it was at the start of 2021. However, it's still 64% higher than it was this time last year.

The post Why has the Fenix Resources (ASX:FEX) share price crashed 20% this month? appeared first on The Motley Fool Australia.

The Fenix Resources Ltd (ASX: FEX) share price is surging today despite no price-sensitive news having been released by the company.

And today's gain is only the latest extreme movements faced by Fenix's stock this week. The company's share price plummeted a massive 22% on Monday.

Today, it seems to be making up some of its lost ground. At the time of writing, the Fenix share price is 23 cents, 9.52% higher than its previous close.

Let's take a look at what's been driving the iron ore producer's stock this week.

What's driving Fenix's stock this week?

The Fenix share price is back in the green again today despite no price-sensitive news from the company having hit the ASX.

However, we have heard some non-price sensitive news from Fenix. Last night, the company announced its managing director, Rob Brierley, sold 6 million shares in the company for around 21 cents each. Although, it was noted that the sale was meant to fund a real estate purchase, rather than to simply cash out.

Oddly enough, this news might have sparked the market's enthusiasm towards Fenix's stock. Despite it insinuating, the company's boss believes 21 cents is a worthy price.

Unfortunately for Brierley, he might have chosen the wrong day to sell his shares. If he had palmed off the stock on Friday, he could have got substantially more bang for his buck.

That's because Monday saw the Fenix share price plummet 22%. It then fell another 10% over the course of Tuesday and Wednesday.

That means today's uptick could be the market's way of correcting itself after this week's tumble.  

As The Motley Fool Australia reported at the time, the company's stock underwent a sell-off on Monday after its ex-dividend date passed.

Prior to its ex-dividend date, Fenix was sporting a massive 17.8% dividend yield.

Fenix Resources share price snapshot

Fortunately, the Fenix share price is gaining back some of its losses today. Though, it's not quite enough to get the company's stock back into the green.

Right now, shares in Fenix are trading for 4% less than they were at the start of 2021. However, they have gained 64% since this time last year.

The post Why is the Fenix (ASX:FEX) share price surging 10% on Thursday? appeared first on The Motley Fool Australia.

The Fenix Resources Ltd (ASX: FEX) share price opened to a rude awakening on Monday, down 27% to a 6-month low of 21.5 cents.

What's driving the Fenix Resources share price?

Fenix Resources shares went ex-dividend this morning for a whopping fully-franked 5.25 cents per share.

Any investors that held Fenix Resources prior to the ex-dividend date will be eligible to receive the dividend payment on Tuesday, 5 October.

Based on last Friday's prices of 29.5 cents, this represents a dividend yield of 17.8%.

Double-digit dividend yield? How?

Fenix Resources had a breakthrough FY21, dispatching its maiden shipment of iron ore in February 2021.

Before today's fall, the Fenix Resources share price was up 25% year-to-date and 100% in the past 12-months.

According to its annual report, the company shipped a total of 0.501 million wet metric tonnes of iron ore which helped it generate a net profit after tax of $49.0 million.

Fenix Resources currently has a market capitalisation of just ~$140 million.

This means that based of FY21 net profit, it's trading at a price-to-earnings of just 2.85.

Perhaps what's more encouraging for the iron ore junior is the fact that it's managed to hedge its iron ore sales at A$230.30/dry metric tonne for the next 12-month period.

From October 2021 to September 2022, the company entered into iron ore swap agreements for 50,000 tonnes per month.

Fenix managing director Rob Brierley commented on the hedge, saying:

The iron ore swap arrangements were foreshadowed in our … quarterly activities report for the June 2021 period. We are effectively locking in ~45% of our planned production during a 12-month period commencing October 2021, at a fixed price that is sufficient to cover the majority, if not the entirety, of our budgeted cost base.

This might explain why the Fenix Resources share price is down 5.4% year-to-date compared to Fortescue Metals Group Limited (ASX: FMG) which has plunged 42% this year.

The post Why is the Fenix Resources (ASX:FEX) share price crashing 27% today? appeared first on The Motley Fool Australia.

The Fenix Resources Ltd (ASX: FEX) share price is a strong performer on Wednesday after the iron ore producer released its annual results and maiden dividend.

At the time of writing, Fenix shares are 8.62% higher than yesterday's closing price, trading for 31.5 cents a share.

Fenix Resources share price rises on profit and dividend boom

Fenix Resources hit the ground running this year, dispatching its maiden shipment of Iron Ridge product in February 2021. Some key highlights from FY21 include:

• Total iron ore sales of 0.501 million wet metric tonnes (Mwmt), comprising of 0.242 Mwmt of lump and 0.259 Mwmt of fines
• Net profit after tax of $49.0 million
• Cash of $69.0 million at 30 June 2021
• Successful development of the Iron Ridge iron ore project, with first shipment in mid-February
• Maiden fully-franked dividend of 5.25 cents per share

What happened to Fenix Resources in FY21?

The Fenix Resources share price has rallied almost 36% year-to-date after its successful transition from explorer to producer.

Following a successful final investment decision in September 2020, Fenix Resources began producing iron ore in December 2020.

Lump and fines products were stockpiled at the Port of Geraldton in preparation for its first shipment which took place in February this year.

Following the maiden shipment, an additional 8 ships were successfully loaded in the reporting period, amounting to more than half a million tonnes of product shipped from the Iron Ridge project.

A 16% dividend payment is on the horizon

Despite boasting a market capitalisation of just $147 million, Fenix Resources managed to turn over a net profit of $49 million in addition to $69.0 million cash in the bank.

The company declared a 5.25 cents per share dividend, equating to approximately 51% of its net profit after tax.

At today's prices, this represents a dividend yield of approximately 16.6%.

The Fenix Resources share price will go ex-dividend on Monday, 20 September with a payment date of Tuesday, 5 October.

The post Fenix Resources (ASX:FEX) share price eyes 16% maiden dividend appeared first on The Motley Fool Australia.

ASX shares in the iron ore sector have sold off sharply in recent months following steel production constraints in China.

Iron ore prices have rapidly deteriorated from May record highs of US$230/t to just US$129/t.

This has, in turn, rattled iron ore majors. BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) share prices plunged 20.9%, 10.5% and 16.3% respectively in the past month.

Lower iron ore prices could impact the profitability of iron ore shares in FY22. But one ASX share has managed to lock in a portion of its production at an impressive A$230/dry metric tonne.

Which ASX share is it?

Fenix Resources Ltd (ASX: FEX) is a small cap iron ore producer with a market capitalisation of approximately $130 million.

The company began producing iron ore in December last year. It announced its maiden shipment of 37,157 wet metric tonne (wmt) in February.

On 22 July Fenix revealed it has entered into iron ore swap arrangements for 50,000 tonne per month for the next 12-month period. From October 2021 to September 2022 the company has secured a fixed price equivalent to $230.30/dmt. That's US$169.3/dmt at today's exchange rates.

In the announcement, the company said:

The swap arrangements were executed after the implementation of a Price Protection Policy designed to secure the medium-term future of the Iron Ridge project, whilst maintaining Fenix's exposure to the iron ore price.

Commenting on the hedge, Fenix managing director Rob Brierley said:

The iron ore swap arrangements were foreshadowed in our … quarterly activities report for the June 2021 period. We are effectively locking in ~45% of our planned production during a 12-month period commencing October 2021, at a fixed price that is sufficient to cover the majority, if not the entirety, of our budgeted cost base.

The post Worried about iron ore prices? This ASX share has prices locked in at A$230/tonne appeared first on The Motley Fool Australia.

The Fenix Resources Ltd (ASX: FEX) share price surged on 13% to 30 cents within the first ten minutes of trading after the company released its unaudited FY21 results.

At the time of writing, shares in the iron ore junior are up 7.55% to 28.5 cents.

Fenix Resources share price surges on bumper profit results

At its highest point in the calendar year, the Fenix share price was up 97.8% to an all-time high of 45.5 cents. The company has hit a number of milestones this year as it transitions from an iron ore explorer to producer. Some key financial highlights include:

• Unaudited sales revenue of $113 million
• Unaudited net profit before tax of $62 million
• Unaudited headline net profit after tax (NPAT) of $49 million

Dividend policy on watch

The company announced the finalisation of its dividend policy which provides, to the extent its dividends can be fully franked, a payout ratio of 50% to 80% of after-tax earnings.

With an unaudited headline NPAT of $49 million and market capitalisation of ~$132 million, this implies a price-to-earnings ratio of just 2.55 and a potential dividend yield between 19.58% and 30.6%.

Management commentary

Fenix Resources managing director Rob Brierley commented on the results, saying:

Our unaudited financial results illustrate the rapid and relatively seamless execution of our project delivery strategy. We have hit the ground running and taken advantage of robust iron ore prices. 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.

What's next for Fenix Resources?

Brierley said that the company is targeting the release of its audited FY21 financial result in mid-September.

This potential near-term catalyst for the Fenix Resources share price will also include the declaration of its maiden dividend.

The post Fenix Resources (ASX:FEX) share price up 7% on profit and dividend surge appeared first on The Motley Fool Australia.

The Fenix Resources Ltd (ASX: FEX) share price is rebounding today after a disappointing run of the week. This comes after the resource exploration company announced a positive update to the ASX this morning.

At the time of writing, Fenix shares are up 5.37% to 43.2 cents. In comparison, the All Ordinaries Index (ASX: XAO) is also travelling 0.9% higher to 7,652 points.

Let's take a closer look at what the company updated the market on today.

What did Fenix announce?

Investors are buying Fenix shares following a statement from the company that it has secured a fixed price for its iron ore.

According to the release, Fenix entered into iron ore swap arrangements for its flagship, Iron Ridge Project. The contracts are for a 12-month period commencing from October to September 2022.

Under the deal, 50,000 tonnes of iron ore will be locked at a monthly average price based on the 62% iron ore fines benchmark index (Platts IODEX). Converted to Australian dollars over the agreed term, the fixed price is equivalent to $230.30 per dry metric tonne (dmt).

The swap arrangements follow the company's implementation of a price protection policy designed to secure the medium-term future of the Iron Ridge project.

The unsecured contracts will be settled in cash at the end of each month. This means that there are no margin calls or requirements to lodge cash at call, or on deposit.

Fenix managing director, Rob Brierley commented on the company's decision, saying:

The iron ore swap arrangements were foreshadowed in our recently released quarterly activities report for the June 2021 period. We are effectively locking in ~45% of our planned production during a 12-month period commencing October 2021, at a fixed price that is sufficient to cover the majority, if not the entirety, of our budgeted cost base.

Furthermore, Mr Brierley touched on Fenix's plans, adding:

We look forward to finalising our Capital Allocation Policy leading up to the release of our FY21 financial results, confident that we have secured profitability until at least Q4CY22, by which time the mine plan predicts the production of even higher specification iron ore that should result in higher market premiums.

About the Fenix share price

It's been a positive 12 months for Fenix shares, accelerating by more than 500%, and up almost 90% year-to-date. The company's share price reached an all-time high of 45.5 cents last week and could break that feat again.

Fenix presides a market capitalisation of roughly $204.2 million, with approximately 472 million shares on issue.

The post Here's why the Fenix Resources (ASX:FEX) share price is surging 5% appeared first on The Motley Fool Australia.

The Fenix Resources Ltd (ASX: FEX) share price is sinking today, despite the company announcing a ramp-up in production. At the time of writing, Fenix shares are down 2.19% for the day.

The company is hoping to emerge as Western Australia's next significant iron ore producer and has advanced quickly from project construction back in August 2020 to its maiden shipment on 15 February 2021. 

Fenix share price sinks on production ramp-up

Fenix has been focused on ramping up the production of its 100% owned flagship Iron Ridge iron ore project. Today, the company announced that road haulage rates from the Iron Ridge mine to the port storage facility have reached nameplate levels of 1.25 million tones per annum (Mtpa).

The update notes that Fenix is now able to schedule two bulk shipments of approximately 60,000 wet metric tonnes (wmt) per month for the foreseeable future. This milestone was achieved approximately one month ahead of the company's schedule. 

Managing director Rob Brierley congratulated the Fenix team on its successful journey from explorer to producer.  

I'm proud of the achievements of the Fenix team, in collaboration with our keys service providers Fenix-Newhaul, MACA Mining, Alpha and Champion Bay Electrical. We have built a sustainable iron ore export business in a short space of time and have done so with due respect for the heritage value of the area around Iron Ridge, the environment and the health and well-being of our people.

How does Fenix's production stack up in the iron ore space?

Fenix and its Iron Ridge project are in its early days, but the company's nameplate capacity is significant when compared to existing ASX-listed iron ore producers. 

Mount Gibson Iron Ltd (ASX: MGX) for example, boasts a market capitalisation of $1 billion with 2.35 million wet metric tonnes (Mwmt) mined in FY20. Mount Gibson is also ramping up production with its half-year results highlighting 1.4 Mwmt mined for the half year ended 31 December. 

This towers over Fenix which currently has a market capitalisation of just $113 million with its 1.25 Mpta nameplate capacity and capacity to schedule two bulk shipments of ~60,000 wmt per month for the foreseeable future. If things go to plan, Fenix could be shipping an annualised 1.44 Mwmt per annum despite fetching just one-tenth of Mount Gibson's valuation.

That said, Fenix is in its early days without a history of production excellence. It is positive to see that in the company's quarterly activities report on 20 January 2021, it highlights sales agreements in place for 100% of projected iron production from Iron Ridge.

The post Fenix Resources (ASX:FEX) share price dips despite production ramp-up appeared first on The Motley Fool Australia.

The Fenix Resources Ltd (ASX: FEX) share price is trading nearly 2% higher at 26.5 cents a share today. The price bump follows the release of the company's quarterly results.

The company has experienced significant growth over the previous 12-month period with the Fenix share price powering up close to 400% higher.

Here's what we learned.

Everyone is loving iron ore

In its December quarterly activities report, Fenix advised that iron ore production is underway at Fenix's Iron Ridge project in Western Australia.

Fenix estimates "approximately 60,000 tonnes of combined lump and fines product scheduled for early February".

With the price of iron ore up around 79% for the year trading close to $170 a ton, that's roughly a $10.2 million pile of iron ore before costs and fees are considered.

The Federal Government has been vocal about iron ore prices soaring and how this benefits the Australian economy, as discussed during the mid-year economic and fiscal outlook.

A strategic offtake agreement

During the December quarter, Fenix announced an offtake agreement with Sinosteel International Holding Company Limited.

This means that Fenix has sales arrangements that are now in place for 100% of the company's projected iron production. Atlas Iron subsidiary Weld Range Iron Ore Pty Ltd has already staked 50% of production and sales for Iron Ridge.

Additionally, the Sinosteel deal also entitles Fenix to acquire an iron ore storage shed, truck unloading, and conveyor systems located at the Geraldton Port.

Port lease agreement

Importantly, Fenix has secured the access necessary to export the company's iron ore products.

Also in today's announcement, the company advised that during the December quarter, it had executed a port lease agreement and a port access and services agreement with Mid West Ports Authority (MWPS) for the export of iron ore products through the port of Geraldton. The agreement allowed Fenix to export 1.25 million tonnes per annum of iron ore.

The post Why is the Fenix Resources (ASX:FEX) share price higher today? appeared first on The Motley Fool Australia.