Ann: Fenix Board Appointment, page-199

Maybe use some facst in your post. It astounds me that 5 people have voted this up.

This is from FEX's own annual report last year showing the gross (100% version) profit made by Fenix Newhaul.

I wouldn't say any of that was " From the outside it is not clear but perhaps the original Newhaul JV contract was so wildly balanced in favour of Newhaul, as designed and implemented by RB, that intervention was required." Really? You think a profit margin of less than 10% in 2021 and 16% in 2022 is "widely balanced in favour of Newhaul"????

Either you are deliberately trying to deceive or don't read financial statements.



With regard to the $10 / tonne, I've put it very clearly, but will do so again here. Its smoke and mirrors There is a reason why JW always only mentioned C1 cash cost when talking about the acquisition and rarely about EBIT and NPAT (which is what should matter to shareholders).

Very simply I'll put it here.

In 2022, FEX would show the full Fenix Newhaul revenue component in COS (and therefore in C1 cash cost). $59.7m over around 1.3m tonnes, is around $44 / tonne.

Fenix Newhaul costs that go into that are COS (less depreciation) and part of Operating Expense, but lets include all of it for now, as it proves the point needed, but I will take out depreciation (based upon the interims - which is around $4.8m). So the sum above of COS, Op Expense and Other expense is $45.8m less depreciation is $41.0m right. Now, following the acquisition, FEX will replace the $59.7m above, with $41.0m into their C1 cash cost, which is around $30.50, so that C1 cash cost saving is actually around $13.50, so JW is actually underselling the impact based on the FY22 results. However, that doesn't include the full cost impact to EBIT.

So a gain of around $13.50 to C1 cash cost. For EBIT, you need to remove depreciation, so take $4.8m off (or around $3.60 / tonne), Then take off the Income tax expense that Fenix Newhaul paid (and FEX will need to pay in the future), thats $4.2m, so take off another $3.15. So that bring us down to around about $6.75. But thats not all, remember FEX owned 50% of the JV during FY22, so we need to normalise (as we have taken 100% of the reduced cost above), so we need to take out $4.8m from the FEX accounts (remember there is no tax offset here as FEX only recognised NPAT from their profit from the JV), so thats another $3.60 / tonne. So the gain per tonne to NPAT (which flows into EPS) is actually only $3.15 / tonne. Thats based upon FY22 results, and the interims showed that Fenix Newhaul was performing weaker than this, so its probably less of an impact in the interims.

This is where the JV is all smoke and mirrors, and why JW only ever mentions C1 cash cost and not NPAT or EPS. The last time they mentioned EPS was at the acquisition and that is actually false, if you take into account the additional shares that will be issued at the milestones (the 1st 1 - 3m tonnes) will be issued in less than 1 year and is basically certain to happen.