"Fenix has pulled off the deal of the century to buy out that contract and future profit flow for the life of the mine on what i calculate above as a 6 month payback on the savings generated."
I have reviewed the information available on the FN deal and I'm sorry, mate, I think this remark in Point 2 of your summary is fiction. If it was a 6 month payback surely the company would be boasting about it. They have said nothing directly about a 6 month payback. They have simply dropped the numbers they want to drop and let shareholders work it out on their own without the rest of the information.
The deal smacks of a dollar-swap exercise, I assume solely driven by JW with RB most likely not supporting and ultimately wanting nothing to do with it. RB left 3 days after the deal was completed - closing down a deal he did from the outset to pull back half of the profits from the trucking into FEX via a JV structure - plus fixing the trucking costs with the possible variability in relation to diesel costs.
My own guess of the matter is that RB left for two reasons. I wonder if JW was bullying him, and, second, that RB was not prepared to parrot what appears to be a one-sided company narrative relating to a $10/t cost saving relating to an above-the-line (i.e. the NPAT line) 'cost of sales' without revealing the real net, net, net position.
FEX Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
(20min delay)
