Fenix Resources: How unusual – A small/mid-cap mining company making good money and paying real dividends.
Fenix Resources Chairman John Welborn on 6PR Bulls N' Bears Report
Listen to ASX-listed Fenix Resources Chairman John Welborn talk to Matt Birney on the Bulls N’ Bears Report about Fenix’ remarkable iron ore mine in WA that is spitting out cash.
TO LISTEN TO THE FENIX RESOURCES AUDIO INTERVIEW - CLICK BELOW
Fenix Resources is a little unusual in that it is a small to mid-cap company that actually owns an operating iron ore mine in WA – the Iron Ridge Mine north of Mt Magnet. It is even more curious in so much as it owns its own trucking company and port facilities in Geraldton, produces an unusually high-grade hematite iron ore product and pays fully franked dividends.
RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears brought to you today by WA iron ore miner Fenix Resources
Matt Birney - ASX code: FEX
Matt Birney - I’m Matt Birney and I’m joined now by the Chairman of Fenix Resources, John Welborn.
Matt Birney - Hi John
John Welborn - Hi Matt, good to be on Bulls N' Bears.
Matt Birney - Okay so, Fenix Resources is a little unusual in that it is a small to mid-cap company that actually owns an operating iron ore mine in WA – the Iron Ridge Mine north of Mt Magnet.
Matt Birney - It is even more curious in so much as it owns its own trucking company and port facilities in Geraldton, produces an unusually high-grade hematite iron ore product and pays fully franked dividends.
Matt Birney - Okay John what's the current resource and reserve at your Iron Ridge mine now?
John Welborn - Well as at 30 June 2022, we had 8.3 million tonnes of iron ore at the unusually high grade of 64.8 per cent in resources.
John Welborn - The reserve is just over five and a half million tonnes at a similar grade above 64.5 per cent iron ore so a fabulous orebody.
Matt Birney - What's the current mine life prediction? What opportunities, if any, have you got to stretch that mine life?
John Welborn - Well we're currently producing and have been producing since we got into production during 2021 at 1.3 million tonnes per annum with really steady state grade operation so we've got four or five years left if you look at those resources.
John Welborn - The orebody itself is constrained by heritage but we have a very large exploration ground around us and we'll be looking at mine life extensions as we progress through the mine plan.
Matt Birney - I'm guessing it 63 - 64 per cent Fe is reasonably profitable. What sort of operating margins is it showing?
John Welborn - Well last week we celebrated our three millionth tonne of production and over the three million tonnes that we've produced, we've averaged an operating margin of over $50 Australian dollars a tonne so it's it's a fabulously profitable operation and that's because as you mentioned in the intro, we have a fully integrated logistics chain and we own our own haulage fleet and we own our own port operation.
Matt Birney - Well let's talk dividends. What have you been doing with those profits?
John Welborn - Well we've enjoyed very strong iron ore priceswhich has generated strong profits so in FY 21 and FY 22 we paid a fully franked dividend to our shareholders of five and a quarter cent so off our share price at the time and now that's a very high yielding stock.
Matt Birney - You recently picked up all of Mt Gibson's iron ore assets in the region for I think about 25 million or so. What were those assets and how will they assist you going forward?
John Welborn - A fantastically exciting transformational transaction for Fenix. We've acquired the Shine Iron Ore mine in our neck of the woods, 15 million tonnes of extra resources at 58 per cent iron ore represents a great opportunity for us to bring on more production and the port facilities are A-Class, increase our capacity at the port by 400 per cent, can support operations of more than 5 million tonnes a year so great growth opportunities for Fenix.
Matt Birney - John Welborn from Fenix Resources.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information not advice but you should of course seek in independently
Matt Birney - I'm Matt Birney and this is Bulls N' Bears
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