All very good points. I have changed my mind. Current management are snakes and totally dishonest. Your examples are well reasoned and clearly factual. The company is obviously in deep peril and performing terribly under such obvious total incompetence. ` The change in performance has been profound. The wheels have fallen off and the ship is sinking. Who can we find to do the sacking?
Yes you have got this wrong. The claimed $10/t saving is a saving for Fenix not the JV. 100% attributable to Fenix. Even by your own flawed analysis you are now saying that the deal actually is marginally positive and value creative to the tune of $2 to $5m. Hardly the total disaster you have been claiming. And your analysis provides no value for the likely reality that the life of mine will be extended and expanded and/or the potential for other revenue and profits from the haulage business. Talk about shadows and mirrors!
Hi Mr Poshman, You have not considered the cost inflation across the broader Fenix business that dilutes the savings you are identifying in the accounts as being the gross savings from Fenix-newhaul. Do you accept that your analysis is relevant for the NET savings from the deal and ignores cost inflationary effects on other parts of the business which will have offset the gains made? Same for the EPS and DPS analysis - you are ignoring other impacts on the analysis other than the transaction. It will be interesting in the full year accounts to separate out the FN deal and verify its effects on EPS and DPS. You have not been able to do that. Hopefully your approach of just doubling the half year will not be accurate with regard to full year profitability. Especially at current spot prices!
FEX Price at posting:
23.5¢ Sentiment: Buy Disclosure: Held
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