Guess which ASX iron ore share leapt 6% on ‘outstanding returns for shareholders’. Hint: not Fortescue

The S&P/ASX 200 Index (ASX: XJO) slid 1.95% today, but one ASX iron ore share jumped ahead on the release of its FY22 results.

The Fenix Resources Ltd (ASX: FEX) share price gained 5.88% today to trade at 36 cents.

Let’s take a look at what this ASX iron ore share reported to the market.

Fenix Resources revenue lifts 118%

Highlights of Fenix Resources FY22 full-year results include:

• Net profit after tax (NPAT) lifted 3% to $50.7 million
• Net operating cash flow of $62.3 million, down from $65.3 million in FY21
• Total sales revenue lifted 118% on the previous financial year to $249.2 million
• Fully franked final dividend of 5.25 cents per share
• $101.9 million cash at hand as of 30 June

What else did the company report?

Fenix shipped and sold about 1.335 million wet metric tonnes (wmt) of high-quality iron ore from its 100%-owned Iron Ridge Project.

This included about 627,00 wmt of lump iron ore with an average grade of 63.9% Fe and 708,000 wmt of fines at an average grade of 61.9% Fe.

Revenue lifted 118% on the back of the company ramping up operations.

Despite “volatility in the iron ore price” and higher fuel and freight costs, Fenix reported a slightly higher net profit than the FY21 result of $49 million.

This year’s dividend was on par with the dividend paid out in FY21.

Management comment

Commenting on the results, Fenix chairman John Welborn said:

Fenix continues to deliver outstanding returns for shareholders based on the excellent operational focus of our team and the application of disciplined corporate strategy.

We are exceptionally well placed to maintain the strength of our existing operations and advance exciting opportunities for further growth.

What’s ahead?

Fenix said it is in a “strong hedging position” for FY23. The company has iron ore swap arrangements for 50,000 dry metric tonnes (dmt) per month up to September this year at a price equivalent of $230.30 per dmt in Australian dollars. From October to June next year, Fenix has hedging arrangements for 35,000 dmt per month at $180.65 per dmt. The total value of these arrangements is about $12.65 million as of 30 June.

The company is predicting it will ship about 1.3 million wmt of iron ore in FY23.

Share price snapshot

The Fenix Resources share price has soared 26% in a year, while it’s lifted 33% year to date.

In the past month alone, Fenix Resources shares have surged 29%.

For perspective, the benchmark ASX 200 Index has fallen 7% in a year.

The post Guess which ASX iron ore share leapt 6% on ‘outstanding returns for shareholders’. Hint: not Fortescue appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What’s going on with the Santos share price today?
• Why are the VAS ETF’s dividends so erratic?
• Why did the Polynovo share price plunge 17% today?
• Why did the Sayona share price tumble 5% on Monday?
• Why did the Appen share price just hit a 5-year low?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wMsViQA