At the time of writing, shares in the iron ore junior are up 7.55% to 28.5 cents.
Fenix Resources share price surges on bumper profit results
At its highest point in the calendar year, the Fenix share price was up 97.8% to an all-time high of 45.5 cents. The company has hit a number of milestones this year as it transitions from an iron ore explorer to producer. Some key financial highlights include:
- Unaudited sales revenue of $113 million
- Unaudited net profit before tax of $62 million
- Unaudited headline net profit after tax (NPAT) of $49 million
Dividend policy on watch
The company announced the finalisation of its dividend policy which provides, to the extent its dividends can be fully franked, a payout ratio of 50% to 80% of after-tax earnings.
Fenix Resources managing director Rob Brierley commented on the results, saying:
Our unaudited financial results illustrate the rapid and relatively seamless execution of our project delivery strategy. We have hit the ground running and taken advantage of robust iron ore prices. The iron ore swap arrangements we entered into in July are already in-the-money and these arrangements secure Iron Ridge’s future for FY22 and beyond.
What’s next for Fenix Resources?
Brierley said that the company is targeting the release of its audited FY21 financial result in mid-September.
This potential near-term catalyst for the Fenix Resources share price will also include the declaration of its maiden dividend.