weakening aussie dollar......

The weakening Aussie Dollar, presently at A$1.36 to the greenback will help the Felix results for 2006 -
they have now been downgraded from A$65 million to A$57 million. A rate around A$1.45 ( for the second half and an average of A$1.40 for the whole financial year ) to the greenback will put the profits back on track for the original estimate.

Last year a dividend of 1.95 cents was paid on profits around A$12 million. A dividend for 2006 can be expected at around 5 cents per share ( costing about A$9.2 million ) with a PE ratio between 6.0 and 6.5 at A$1.95 a share.

Forecasts beyond 2006 become increasingly more difficult.
However, if production increases as forecast and we allow for the more pessimistic forecasts of coal pricing for the 2007 year, we should see profits at around A$80 million and a dividend of 10 cents costing A$18.4 million. )

2008 - 10 should see a rapid increase in coal production as Moolarben comes onstream. Profits, that have to be a complete guess on 2007 prices, can be expected to be in the following ranges :-

2008 - profit A$120 - A$150 million - dividend 20 cents+
2009 - profit A$150 - A$200 million - dividend 30 cents+
2010 - profit A$150 - A$300 million - dividend 40 cents+

The above is purely to show the potential of Felix Resources ( see http://www.felixresources.com.au for production forecasts ) and as we all know, it's coal prices and demand that are the future factors in all of the forecasts for FLX.