Metric sales

Fenix ​​Resources Ltd Passes Million Dry Metric Tonne Sales Milestone at Iron Ridge

This achievement triggers the conversion of the 30 million Class B performance shares into ordinary shares of the company.

Fenix ​​Resources Ltd (ASX: FEX) has reached a milestone of 1 million dry metric tonnes in sales of high-grade iron ore from its flagship Iron Ridge project in the Mid-West region of Western Australia.

The company plans to begin business reviews this quarter designed to optimize the current operational strategy and assess opportunities for synergistic growth to take advantage of the completion of this production milestone.

Notably, Fenix’s net operating margin averages AUD 64 per tonne for the million tonnes of iron ore sold to date.

“Supported by a hedging position”

Fenix ​​Managing Director Rob Brierley said: “I am proud of the entire Fenix ​​and Iron Ridge team, which includes our major service providers MACA Ltd, Fenix ​​Newhaul Pty Ltd, Alpha 1 WA Pty Ltd and Champion Bay Electrical, for taking this important step. .

“Although the current macroeconomic conditions in the iron ore industry have been difficult in recent months, we maintain a strong production and sales profile supported by our hedge position, which currently stands at over $ 52 million. Australians based on Nov. 26. , data on prices and exchange rates for 2021. “

Milestone in performance

Fenix ​​acquired a 100% interest in the Iron Ridge high grade iron ore project in May 2018 for stock consideration of 25 million common shares plus 112.5 million performance shares.

The performance shares included 15 million class A performance shares, 30 million class B performance shares, 37.5 million class C performance shares and 30 million class D performance shares .

Performance stocks have milestones at which they convert to common stock based on mineral resources and significant production performance hurdles.

Achieve 1 million dry metric tonnes of iron ore production shipped from Iron Ridge, and validation that this has been achieved with a net operating margin greater than US $ 15 per dry metric tonne (the unaudited margin of 64 $ A / tonne is over US $ 48 / tonne), triggers the conversion of the 30 million Class B performance shares into Fenix ​​common stock.