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

If you thought BHP or Rio Tinto paid a big dividend, think again.
The post Fenix Resources (ASX:FEX) share price eyes 16% maiden dividend appeared first on The Motley Fool Australia. –

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.

The post Fenix Resources (ASX:FEX) share price eyes 16% maiden dividend appeared first on The Motley Fool Australia.

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More reading

Worried about iron ore prices? This ASX share has prices locked in at A$230/tonne

Fenix Resources (ASX:FEX) share price up 7% on profit and dividend surge

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.

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