Iron ore junior Fenix Resources has reported $25 million in net operating cashflows for the September quarter despite a testing period for the commodity.
Iron ore junior Fenix Resources has reported $25 million in net operating cashflows at the close of the September quarter against the backdrop of a testing period for the commodity.
Fenix iron ore lump fetched an average $US129.23 (A$176) per dry metric tonne FOB, while cash costs for the quarter averaged $86.77 per wet metric tonne.
These figures were underpinned by a declining iron ore price between July and September, which fell from roughly $US217 to $US115.
Despite the subdued period, Fenix reported $49 million in net profits after tax.
The results come at odds to a series of operational suspensions from fellow ASX-listed iron ore miners in the last month.
Fenix managing director Rob Brierley conceded that the speculated collapse of Chinese property giant Evergrande had been a “fright”, but affirmed he was not a “doomsdayer” on the iron ore price.
“Given the current circumstances in the ore industry, this is a strong result which saw Fenix generate substantial free cashflow as increased production and a lower Australian dollar helped offset reduced iron ore prices,” he said.
Mr Brierley told investors during a results conference the company’s hedging position gave him confidence Fenix mines would not be forced into care and maintenance.
“The execution of our hedging policy has also been particularly timely and will help underpin our margins and cashflow generation over the next 12 months.”
Shareholders received their maiden dividend from the company over the quarter which was fully-franked at 5.25 cents per share.
Fenix shares are up 8.51 per cent and trading at 26 cents at 1:11 pm AEDT.