The company raked in $114.6m in revenue in the six months to the end of December based on shipments of 697,980 wet metric tonnes sold at an average realised price of $US126 a tonne.

Its Iron Ridge mine 67km north-east of Cue yielded 386,239t of lump and 311,741t of fines ore over the period at an average grade of 64.7 per cent and 61.8 per cent respectively.

The company revealed C1 operating costs of $90.52/t in the first half with Mr Brierley playing down the impact of rising fuel prices on the business which trucks its ore 486km to Geraldton for export.

“We are mindful of the escalating oil price and the impact it will have on costs but at present the benefit of a rising iron ore price is more than compensating for this current macro-economic dynamic,” he said.

The company has shipped more than 1Mt since it began mining at Iron Ridge at the beginning of last year.

Fenix paid a maiden dividend of 5.25¢ a share ($24.1m) during the period with Mr Brierley indicating a further dividend would be considered later in the year in line with the company’s policy of returning 50-80 per cent of after-tax profits to shareholders.

He noted the benchmark iron ore price averaged $US136/t in the six months to the end of December compared to the prevailing spot price of $US158/t and said the company had achieved an average realised price of $US140/t in the first two months of the year.

“Shipping costs have also fallen from an average of $US34/t to $US26/t,” Mr Brierley said.

“This saving comes straight back to us as an additional margin.”

Fenix is also benefiting from its hedging arrangements, which guarantees it receives $230/t ($US168/t) for 50,000t of its ore each month.

Former Resolute Mining boss John Welborn, who joined Fenix as non-executive chairman in November, said the company had posted a solid profit performance amid a volatile and challenging period for small-scale iron ore producers.

“It demonstrates the strength of Fenix’s opportunity to generate significant cashflows particularly in periods of elevated iron ore prices as we’re seeing right now,” he said.

Fenix held cash of $54.6m and no bank debt at the end of December.