The Fenix Resources Ltd (ASX: FEX) share price is a strong performer on Wednesday after the iron ore producer released its annual results and maiden dividend.
At the time of writing, Fenix shares are 8.62% higher than yesterday's closing price, trading for 31.5 cents a share.
Fenix Resources share price rises on profit and dividend boom
Fenix Resources hit the ground running this year, dispatching its maiden shipment of Iron Ridge product in February 2021. Some key highlights from FY21 include:
- Total iron ore sales of 0.501 million wet metric tonnes (Mwmt), comprising of 0.242 Mwmt of lump and 0.259 Mwmt of fines
- Net profit after tax of $49.0 million
- Cash of $69.0 million at 30 June 2021
- Successful development of the Iron Ridge iron ore project, with first shipment in mid-February
- Maiden fully-franked dividend of 5.25 cents per share
What happened to Fenix Resources in FY21?
The Fenix Resources share price has rallied almost 36% year-to-date after its successful transition from explorer to producer.
Following a successful final investment decision in September 2020, Fenix Resources began producing iron ore in December 2020.
Lump and fines products were stockpiled at the Port of Geraldton in preparation for its first shipment which took place in February this year.
Following the maiden shipment, an additional 8 ships were successfully loaded in the reporting period, amounting to more than half a million tonnes of product shipped from the Iron Ridge project.
A 16% dividend payment is on the horizon
Despite boasting a market capitalisation of just $147 million, Fenix Resources managed to turn over a net profit of $49 million in addition to $69.0 million cash in the bank.
The company declared a 5.25 cents per share dividend, equating to approximately 51% of its net profit after tax.
At today's prices, this represents a dividend yield of approximately 16.6%.
The Fenix Resources share price will go ex-dividend on Monday, 20 September with a payment date of Tuesday, 5 October.
