In this podcast, host Stuart Fieldhouse speaks with Fenix Resources [ASX:FEX] Executive Chairman, John Welborn. John talks about Fenix’s winning formula for mining extraction, transport logistics and port services. and the company’s part in Western Australia export of $60bn of iron ore to China and other markets.
Fenix is a relatively unusual business in that it combines iron ore mining with its transport logistics portfolio, including services that are on offer to other miners. This provides profit dynamics which investors won’t often see in mining. On the podcast we talk about the company’s flagship Iron Ridge mine and its move to acquire CZR Resources (and what that means for Fenix).
From a macro perspective, Stuart and John also discuss how iron ore prices have continued to perform well but given China’s economic struggles, John gives his view on other areas that can sustain steel production going forward. He also explains why he thinks the market is ‘irrationally’ pricing Fenix shares and suggests there could be a re-rate on the back of its production expansion.
Listen: Fenix Resources executive Chairman, John Welborn
Content
00:00 Intro to Fenix Resources
02:23 The Iron Ridge Mine asset
02:54 Western Australia and the global iron ore market
04:17 Who’s buying the iron ore?
05:10 Fenix also has a logistics arm
10:45 Other projects and the CZR takeover bid
12:02 Fenix’s financial performance
13:08 The iron ore market this year
16:36 Sustainability
19:14 Future plans
