Fe Limited chairman shows sky-high confidence in near-term iron ore production strategy through early exercise of options

Fe Limited (ASX:FEL) executive chairman Tony Sage continues to demonstrate that his confidence in the company’s near-term iron ore production strategy is sky-high through the early exercising of options. He has exercised 5 million options for a total value of $125,000. These options were exercisable at 2.5 cents each and were due to expire on March 31, 2022. Converting the options into shares means that Sage holds over 21.673 million shares of combined interest in the company. The latest show of support follows Sage exercising 5 million options in early January worth $100,000.    The company is well-placed to benefit from continuing strong iron ore market fundamentals, including increased demand and higher prices. China recently outlined its new 15-year plan which further boosts confidence for FEL and the industry as a whole. This is reflected somewhat by an increase in FEL’s market cap to approximately $30.8 million and an improvement in the share price to $0.045 today after hitting $0.063 in January 2021, a new high of three years. Strongly supported placement FEL completed a $5.5 million placement to fully fund the development capital at its near-term production JWD West Wiluna Iron Ore Project near Wiluna in Western Australia on February 18. This placement and the exercising of options have put the company in a strong position to carry out the following activities: Develop the JWD West Wiluna deposit; and Undertake evaluation works on the Yarram Iron Ore Project, which will include further resource drill-out, project approvals and milestone payment. Near-term production  FEL remains on track to begin mining at JWD in the short-term and is finalising key mining and sales contracts. It aims to make the first shipment in the June quarter, alongside an assessment of second-phase mining at the project, which the company hopes to begin in the September quarter. The company also has a 50% stake in the Yarram Project in the Northern Territory as part of its two-pronged iron ore production strategy. Yarram is around 110 kilometres from Darwin Port and FEL intends to commence drilling, environmental and stakeholder work in the coming months. It is anticipated that the first iron ore product will ship from Yarram three months after a development decision, which is expected in the December quarter, following exploratory drilling and a JORC resource estimate.