FEX Valuation, page-690

Well Fenix did what i expected.
I note a couple of comments on my last post.
I suspect although we have a FOB contract with Sinosteel we don't get market price until boats Cash drain arrive at market to be sold.
I expect its the same for Atlas.
Shipping 12-14 days?
It does matter if boats are full. $1.50 extra profit per ton on the last QTR and $US4 or $6 AU on the QTR prior.
times that by 1.3mt and its one tenth if not more of your last divvie.
Its good to see some money being spent on upgrades to the port handling and loading infrastructure.
The quicker they can unload and poke it onto boats in 72hrs the better,

The fly in the ointment for valuing Fenix I also consider its strong point.
50% of Fenix Newhaul.
Still a great deal for those who can be bothered to work it out.
Commitments on truck purchase and finance terms one imagines tied to there being a $360m 77 month trucking contract have some investors unsure.
So going to care and maintenance has a costly tail I would imagine and not an option unless there is tons of cash in the bank at Fenix
A good reason to hedge while you can - Well done.
Those thinking of great divvies immediately ahead may want to ponder that and note
I also note even this quarter some money went to associated businesses.
$1.6m loaned in the first 6 months and last profits left in +$2.5m since the start of operations.
That is while still operating.


SCN did a share for drilling swap for $250k with the driller to get its last lot of drilling done,results mundane.
SCN's sharemarket value is around $13m? or so.
In six months to a year one could reasonably suspect Fenix would have found an outlet for some of the funds it holds (capital)- which are not holding tax credits to invest in conservative growth or tag on tenements.
They are only going to get cheaper to aquire over coming months or years at current IO prices,while good they don't encourage new low life mines to start from scratch.
Fenix has everything lined up to mine and ship except its next source of ore

Happy to sit and watch this slow scoping out of operations play out in an orderly fashion.
As always

DYOR+DYODD