How FEX is still trading at about $150m market cap is beyond me. It has $26.7m cash and $0 debt at end of March 2021.
June Quarter.
Assuming average selling price of about US$180/t and cost of about US$66/t, margin is US$114/t.
Assuming production of 300kt in the June quarter, that brings cash flow of 300,000 x (114 x 1.29) = $44m.
Assuming the same for Sept and Dec quarter, FEX could have a cash balance of $26.7m + $132m = $158.7m by the end of the year. (I'm positive on iron ore price till next year at least). The chinese demand is simply too strong and supply is very tight. This is not going to change anytime soon.
This means the cash holdings is equal to the current market cap, which is crazy. Or counting in PE ratio terms, FEX is trading at 1 times forward PE.
Just back of the envelope calculation, so it's not in details. But you get the whole picture.
Ann: SCN: Fenix Iron Ore JV Update - Pharos, page-36
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Last
31.5¢ |
Change
-0.010(3.08%) |
Mkt cap ! $218.8M | |||
| Open | High | Low | Value | Volume |
| 33.0¢ | 33.0¢ | 31.5¢ | $527.9K | 1.656M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 133953 | 31.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 32.5¢ | 115121 | 1 |
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| Last trade - 16.10pm 25/06/2024 (20 minute delay) ? |
| FEX (ASX) Chart |