Transcription of The Stock Network Interview with Fenex Resources Limited (ASX:FEX) Chairman, John Wellborn
Lel Smits: Fenex Resources has a mining business, haulage and logistics business, and port business, and last year completed a definitive feasibility study for the Beebyn-W11 project in Western Australia, which outlined exceptional returns over a seven-year mine life and construction commenced in March this year. Ahead of appearing at Sydney Mining Club, I’m joined by Fenex Resources Chairman, John Wellborn. John, welcome to the Stock Network.
John Wellborn: Nice to be on the Stock Network. Thanks, Lel.
Lel Smits: Now, Beebyn-W11 is a high-quality iron ore deposit located in Western Australia’s Midwest region, and first production is expected in the September quarter of this year.
John Wellborn: What are your production targets and how does this project support the company’s broader growth ambitions? Beebyn-W11 will be Fenex’s third iron ore mine in Western Australia’s Midwest, so it’s very significant for us. Our production rate is going to be 1.5 million tonnes per annum from Beebyn, and that will be in addition to the 1.4 million tonnes we’re currently mining from Iron Ridge and the 1.2 million tonnes we’re mining from the recently commissioned Shine Iron Ore Mine. So Beebyn allows us to go from one iron ore mine, which last year we produced $70 million of EBITDA from, to this year in the September quarter having three iron ore mines producing more than 4 million tonnes per annum.
Lel Smits: Very exciting growth rate. Absolutely, and looking more broadly, Fenex Resources is also focused on transforming the Midwest resources landscape by unlocking stranded assets. Can you outline how this strategy aligns with your broader growth ambitions? Fenex has a very different model.
John Wellborn: Iron ore is usually a game for the big boys. The richest people in Australia, the richest miners certainly, and certainly the biggest mining companies in Australia have all been built on iron ore. Generally, it’s a railway, massive ports, huge capital budgets.
We unlock value by using a unique model. We own our own haulage network. We run 200-tonne road trains on public roads, and we own our own port facilities at Geraldton.
So we actually have three pillars to the business. We’re a mining business, we’re a haulage and transport business, and we’re a port services business. We mine iron ore, we crush and screen it, we haul it, and then we store it at the port and load it onto boats to send to our customers.
That’s our model. And the Midwest is an amazing region of abundant iron ore resources. So the expansion at Beebyn-W11 is just the start of our opportunities in the region.
Lel Smits: Well, John, thank you for outlining Fenex Resources, your growth strategy, and all the progress at Beebyn-W11. Look forward to your presentation at Sydney Mining Club. Thank you very much.
Ends