Iron Ridge reaches 200mt milestone

Fully-integrated mining, logistics and haulage business Fenix Resources has produced and sold its  two millionth dry metric tonne of iron ore from its flagship Iron Ridge iron ore project in Western Australia.

It was shipped in mid-September from Fenix’s facilities at the Geraldton port, with the cumulative milestone of shipped iron ore production now fully verified.

The unaudited net operating margin for the first two million dmt of iron ore produced and sold from Iron Ridge has been calculated as approximately $56 per dmt shipped. This important milestone was achieved 19 months after the first sale of Iron Ridge product in February 2021.

Fenix chairman John Welborn said the production and sale of two million tonnes of high-quality iron ore products from Iron Ridge was an outstanding achievement.

“In less than two years Fenix has established a highly profitable business in the Mid-West which has created more than 200 new jobs and generated more than $100 million in cumulative net profits after tax,” he said.

“Fenix is maintaining consistent operating production at a run rate of approximately 1.3mt of iron ore per annum and is working to deliver C1 FOB Cash Costs below $US60 per tonne. We have a strong hedge position out to June 2023 and are well placed to continue the company’s excellent production and sales performance and, importantly, deliver outstanding returns for shareholders.”

Fenix acquired a 100 per cent interest in the high-grade Iron Ridge project in May 2018 for share-based consideration of 25 million ordinary shares plus 112.5 million performance shares.

The achievement of two million dmt of shipped iron ore production from Iron Ridge triggers the conversion of the 37.5 million Class C performance shares to ordinary shares in Fenix.

Australian Mining.

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