Fenix surges on export agreement

Shares in Fenix Resources have hit a nine-year high after the company struck an agreement to export iron ore from the Port of Geraldton.

The four-year agreement signed with Mid West Ports Authority allows Fenix to export 1.25 million tonnes of ore per annum from its Iron Ridge project in Western Australia using the Berth 5 shiploader.

Fenix has the option of extending the agreement by another four years.

The news sent Fenix’s share price up by as much as 32 per cent today to trade at 22 cents – its highest share price since September 2011 – before closing at 21 cents.

It came after after the iron ore price reached a seven-year high of about $US136 per tonne.

Fenix’s Iron Ridge project is a single open-pit operation, about 490 kilometres inland from Geraldton in WA's Murchison region.

A feasibility study released last year confirmed the 7.76mt Iron Ridge project as a low-cost operation with a high-grade of 63.9 per cent iron and mine life of 6.5 years.

Mining operations will begin this month, with ASX-listed MACA recently appointed as mining contractor under a $185 million, six-year contract.

First ore shipments are expected early next year.

Fenix says it has also settled its $1 million purchase of port infrastructure from Sinosteel Midwest Corporation, as announced in mid-October.

The infrastructure includes a truck unloading facility, a 32,000-square metre storage shed and associated conveyor networks.