Fenix Resources (4ER) Conference Transcript

Summary of Fenix Resources Conference Call - July 24, 2025 Company Overview - Company: Fenix Resources (4ER) - Industry: Mining, specifically iron ore extraction and logistics in Western Australia Key Points and Arguments 1. Operational Success: Fenix Resources has had a successful year, producing 760,000 tonnes in June, with a cash cost of $59.50 Australian FOB Geraldton, demonstrating a strong operational performance compared to industry peers [4][18] 2. Production Capacity: The company is on track to increase production to 4,500,000 tonnes per annum, with the first shipment from the Bibben W 11 mine expected in August [17][25] 3. Financial Performance: Fenix has generated $1 billion in revenue, paid back $65 million in dividends, and invested around $200 million into the business since its inception [8][18] 4. Logistics and Infrastructure: The company operates a state-of-the-art logistics and haulage business, with significant infrastructure at the Port of Geraldton, capable of exporting over 10 million tonnes of bulk commodities annually [7][20] 5. Market Position: Despite strong operational metrics, the company's market cap remains at $200 million, indicating potential undervaluation given its cash flow generation capabilities [18][26] 6. Future Growth: Fenix is focused on expanding ore reserves and unlocking value from previously defined resources, with a right to mine 10 million tonnes from the Sinosteel Midwest Corporation [29][31] Additional Important Content 1. Community Engagement: The company has created 300 jobs in the Midwest and is actively addressing local housing issues by building 50 dwellings in Geraldton [23][24] 2. Strategic Partnerships: Fenix has a collaborative agreement with Sinosteel, which may facilitate the expansion of mining operations based on demonstrated economic viability [30][31] 3. Market Dynamics: The iron ore market is experiencing price increases, with prices between $95 and $98 per tonne during the June quarter, which bodes well for future cash flows [17][18] 4. Operational Efficiency: The company has a unique logistics model that integrates mining and port services, enhancing operational efficiency and cost management [18][22] This summary encapsulates the key insights from the Fenix Resources conference call, highlighting the company's operational achievements, financial performance, and strategic direction within the mining industry.