Research Coverage Initiated - MST Access, page-23

I've been a relatively long term poster that sold my shares last year. I still check in, as I'm a fan of Iron Ridge and I liked the Scorpion tenements but sold out because I wasn't confident in the leadership of the company. I sold at a 50% profit (including dividends) over a 2 year period so relatively happy with that.

I made my views around the purchase of Fenix-Newhaul known at the time, I felt it was overpriced and I still think thats the case. JW loves to promote the C1 cost saving but fails to mention the increase in depreciation, finance costs and other expenses (FEX paid Fenix Newhaul $2.1m for 9 months work in the FY2023 financial year - we'll have to wait and see how much they were paid for the 6 months at the interims) but these costs are all outside of C1 cash cost saving and ultimately any acquisition should be valued on its return to EPS not to C1 cash cost (thats vanity). If a company doesn't quote the improvement to earnings then the acquisition most likely failed to grow earnings and importantly EPS, which I don't think this acquisition did. I believe the Shine mine will go the same way,

I like the more recent acquisitions but looking at their history and now this confirmation that Craig is directly competing with FEX and will only sell those sales to FEX when it works for him, it does give a stench around corporate governance.

I've been involved in companies in the past which despite great assets have ultimately failed (and don't exist anymore) because of corporate governance failures. It was 1 of the 1st tips I was given when I started to invest, the BOD are the most important asset or liability that a company has, I paid lip service to that initially and got burnt. I don't pay it lip service anymore.

Your reference to FMG is a false narrative. FMG was sold down in the GFC due to its debt levels. Only a numpty (and I include the analysts in this) thought it was going to go bust. Even with depressed IO prices, FMG were generating $1.5bn-$2bn in cash from ops to pay down their debt. There was 0% chance of them going bust. I was in the lucky position where I had money on the sidelines for them, I didn't get the bottom but bought around $1.50, it was a no brainer in my eyes and whilst I sold a bit on the way up I still hold most of the shares. I don't see the same no brainer with FEX, the strategy is a bit of an unknown, especially as there has been no clear direction around the profitability of the new focus on transport and especially the 3rd party ore movements. Maybe more will come of that in the interims.