Fenix-where to from here

A simple production cost Valuation,margin guess and what I could easily see happening.

Pure speculation of course.

September all up costs (total Company cash expenditure not necessarily related to production) were around $48m
divided by 341kt shipped = $AU140.75 approx with growing mine stocks awaiting trucking.
x.72 to US = $101.34US or .70 = $98.52US.
shipping costs were around US$34.40 a ton WET
started this month NOV at US$30 and currently around US$27on the 16th and falling like a rock as demand drops.
62%FE lumps worth US$104.55 and 65% FE worth US$105 in China yesterday

So at a guess a margin of $7US a ton on yesterdays prices if outgoings the same and export tons stay stable for this month.
Excluding the hedge
Explains a lot.
Chinese ports stocks are up 3 Million tons for the week to 150MT and 58% FE fines is only worth US$58.
The grade gap is growing.
Thank goodness the rebellion against incentives for finding 58% FE resource.
To put things in perspective.
When Chinese port stocks were down around 125MT and falling that was when the price boom took off.

Time to do another deal with Sino Steel.
They were over accommodating to help get Fenix up and running.
e.g. Allowing access for services on their tenement and then selling the Port sheds and infrastructure which I believe cost over $12m to build originally over 10yrs ago for a mere $1m.
My guess is while they are maybe ready to give up on their tenements for the foreseeable future,they may part with it,or enable the mining of the high grade ore on it for the right deal now they have sold their exporting infrastructure.
Especially if it is only limited to the higher grade ore.
I am sure they would also like any higher grade ore on their adjacent block mined and shipped to them if they could now,via a binding offtake agreement without the hassle of doing it themselves.

The cost of port handling can only reduce by putting more through Fenix's port shed.
A royalty of $3 a ton like FEL is effectively paying by my calculating to mine ore over a defined period,wouldn't upset shareholders,now would it.
Nothing like a win win deal.

On and UP.

DYOR +DYODD There are no doubt other high grade piles of IO poking out of the ground on Fenix's truck route into town to look at as well.