what's the future mr fox? re: in pre-open I have often been a...

what's the future mr fox? re: in pre-open I have often been a fan of Fox but they have not yet delivered. Are they still a good prospect? Whundo Copper is certainly very high grade.

"The outlook for the coming year is positive, and depends on further discovery of additional ore reserves of massive nickel sulphides, development of the Whundo Copper project and the Disseminated Heap Leach Project. The company will repay its debt and will move to an unhedged position on the sale of nickel and will capitalise on higher base metal prices with the Radio Hill nickel mine running effectively and efficiently."

"At year end, a significant portion of the original hedging schedule has been closed out. At 30 June 2005, the nickel hedging schedule comprised 283.2 tons of nickel hedged at an average price of AUD$14,775 per ton which will be fully extinguished by the end of October 2005. After October all concentrate sales will be fully exposed to spot nickel prices which are projected to remain strong."

"Operational activities during the year were focused on the Radio Hill nickel operations which produced 2,084 tonnes of nickel in concentrate and 1,280 tonnes of copper in concentrate. This was below forecast and the main factor governing performance of the operation was the delay in mine development in accessing the high grade ore due to labour and equipment shortages. The net result was that mining operations delivered ore tonnes through development at a lower nickel head grade.
The loss from ordinary activities after tax was $10.1 million and has increased by 148% compared to 2004 (2004: $4.1 million). The following are major contributors to the loss:
- The operation suffered a longer than expected ramp up phase which resulted in the loss of two shipments of nickel and copper concentrates.
- The hedging loss for the year was $4.7 million.
- Direct costs were higher than expected due to the transition from contract mining to owner operator as a consequence of the company’s mining contractor entering into voluntary administration, industrywide increases in wages and salaries, and price increases in general materials and supplies.
- Higher non cash costs, including amortisation and depreciation, amounting $5.6 million."