The Fenix Resources Ltd (ASX: FEX) share price has surged up today on news it has secured a deal with Geraldton Port.
The post Here’s why the Fenix (ASX:FEX) share price rocketed up 26% today appeared first on Motley Fool Australia. –
The Fenix Resources Ltd (ASX: FEX) share price rocketed up 26% today on news it has secured a deal with Geraldton Port. The agreement will allow the company to export 1.25 million tonnes per annum of iron ore using the port’s shiploader.
At the time of writing, the Fenix share price is trading at 21.5 cents, in a day where share prices of iron ore producers on the ASX have broadly risen.
About today’s agreement
Fenix signed binding port access and lease agreements with Mid West Ports Authority (MWPA), operator of the Port of Geraldton in Western Australia.
These agreements will secure for Fenix a port allocation of 1.25 million tonnes per annum of iron ore, to be exported utilising the Berth 5 shiploader.
The term of the lease is four years, with two additional two-year extensions at Fenix’s discretion.
Fenix says the deal will support the company’s flagship Iron Ridge Project, which has been in development since September and is due to start mining, crushing, and road transport operations this month.
The Geraldton Port is located around 490km by road from the Iron Ridge Project.
Fenix managing director, Rob Brierley, said:
We have been working closely with MWPA for well over a year, and it has now culminated into significant commercial agreements that enable Fenix to commence iron ore production and to export its first shipment of product early in the new year.
A quick take on Fenix Resources
Fenix is engaged in exploration of iron, base metals, and precious metals in Western Australia. Company projects include its flagship, the Iron Ridge Project in the Pilbara region of WA.
The feasibility study of Iron Ridge was completed in November 2019. It found that the high-grade and high-quality mine has the potential to provide strong returns over its life of mine.
Specifically, the study concluded a maiden ore reserve of 7.76 million tonnes at 63.9% iron, which underpins its forecast annual production of 1.25 million tonnes for a mine life of around 6.5 years.
About the Fenix share price
The Fenix share price has surged by more than 283% in 2020, coming from a low share price of 5 cents in January. The Fenix share price is currently closing in on its 52-week high of 22.7 cents. The company commands a market cap of $67 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.