Fenix Resources
Financials:
Primary ticker: ASX:FEX
Stage of development: Production
Primary minerals: Iron Ore
Project to promote: Iron Ridge
Project location: Mid West of WA
Website: fenixresources.com.au
Corporate presentation: Click here
Fenix Resources (ASX: FEX) is a high grade, high margin iron ore producer located in the mid-west mining region of Western Australia.
The Company’s 100% owned, flagship Iron Ridge Iron Ore Mine is a premium Direct Shipping Ore (DSO) deposit that hosts some of the highest grade iron ore in Western Australia. Production commenced in December 2020 following a rapid three-month development period, and first sales were generated in February 2021.
High-grade Iron Ore is transported by road from Iron Ridge using the 100% owned FenixNewhaul haulage business to Geraldton where it is shipped using the Company’s port facility. Approximately 1.8 million tonnes of premium iron ore products have been exported to date, generating solid cash flow.
High grade iron ore attracts a premium price on the seaborne market, as a purer product results in lower emissions. Chinese steelworks are demanding low impurity ore to meet increasingly strict government regulations.
Fenix has transformed to become a fully integrated mining, logistics haulage business with the acquisition of 100% of Fenix Newhaul. This strategic move substantially reduces C1 FOB cash costs and provides flexibility to scale haulage operations to match production volumes. Furthermore, logistics capabilities in haulage and port operations enhances Fenix’s ability to unlock expansion opportunities in the Mid-West.
The Company is led by a proven team with deep mining experience and benefits from strategic alliances and agreements, including binding agreements with the Mid West Ports Authority for the use of its Geraldton Port facilities, a 50% off-take arrangement with Sinosteel International Holding Company Limited and an exclusive marketing agreement with Atlas Iron Pty Ltd for the remaining 50% of product sales.
Fenix is focused on promoting opportunities for local businesses and the community; to date, the project has generated some 200 local jobs. Fenix is proud to employ a 40% indigenous workforce and to be in partnership with Schwarze Brothers Pty Ltd and other leading service providers.
Cash: AUD102M
Debt: Nil
Major shareholders:
Management Ownership – 12%
Management Profile
John Welborn – Chairman
What is your rationale for taking part 121 Mining Investment?
Meeting potential investors and increasing awareness regarding the Fenix story / investment opportunity
What recent news would you like to highlight to investors attending?
22 July 2022 – Fenix completes acquisition of Mid-West haulage business
22 August 2022 – $50.7 M profit after tax and 5.2c fully franked dividend declared
What are your key goals in 3 months, 6 months, 12 months?
12 Months:
Fenix is pursuing a three-prong expansion strategy to maximise value for shareholders:
1. Exploration
2. Expansion
3. Acquisition
What do you think makes your company such a compelling investment?
High-grade iron ore: one of the highest grade DSO operations globally
High-yielding, fully franked dividend: returning value to shareholders
Fully integrated model: haulage fleet and port facilities
Skilled team with proven ability to execute growth strategy
What are the top 3 key investor takeaways?
High-grade iron ore: one of the highest grade DSO operations globally – Producing a premium product that results in a lower carbon footprint.
High-yielding, fully franked dividend: returning value to shareholders – Generated net operating cashflow in excess of A$112 million since inception.
Fully integrated model: haulage fleet and port facilities – Distinct infrastructure advantage will underpin future growth opportunities.
Skilled team with proven ability to execute growth strategy – Exploration, expansion, acquisition growth strategy to drive shareholder value.