Base metal inventory levels are dropping on a daily basis and the supply side (especially zinc) will not begin to meet demand until at least '07'. The Ashyia deposit alone has enormous potential, but a VMS cluster of deposits that can be brought into production when inventory levels are at their lowest will give FXR the ability to capitalise on this. The cash flow generated from revenue over the next 4-5 months will put FXR in an enviable position.
FXR has established an excellent relationship with Jinchuan Nickel - China's largest nickel producer and have a willing participant in their exploration plans.
An opportunity exists for FXR to be significantly re rated in the coming months, especially if the Austin drilling proves up another high grade deposit.
I can understand the desire to take profits after Fox's excellent run of late, but I think the main prize is yet to come. I am in the process of freeing up more funds to continue accumulating more at these prices. IMHO this is a buying opportunity which will not last for long.
Dis: do your own research. I am not a fin. advisor.
FXR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
