Fenix Resources (ASX:FEX) share price eyes 16% maiden dividend

If you thought BHP or Rio Tinto paid a big dividend, think again.

| More on:
Miner puts thumbs up in front of gold mine quarry

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

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.

Motley Fool contributor Kerry Sun 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 Bruce Jackson.

More on Share Gainers

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a day to forget this hump day.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Droneshield, Meteoric Resources, Mount Gibson, and Tyro shares are charging higher

These shares are having a good time on hump day. But why?

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX was back in the black this Tuesday.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why DroneShield, Hansen, Hub24, and Paladin Energy shares are racing higher today

These shares are having a strong session. Let's find out why.

Read more »

Man on a laptop thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors weren't in a good mood this Monday.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Abacus Storage King, DroneShield, Hansen, and Macquarie Technology shares are charging higher

These shares are starting the week on a positive note. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a sour note today.

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 stocks smashing the benchmark this week

Investors are sending these four ASX 200 stocks soaring this week. But why?

Read more »