# XRF - XRF Scientific



## Duckman#72 (2 November 2006)

Hi All

Just getting your opinions on XRF Scientific. Listed two days ago on the ASX at 20c. Been as high as 26.5c since then. 

They make spectrometers, chemicals, fusion equipment, and heating technology products for the mining, oil and gas, pharmaceutical and construction industries.

As I understand it, the "jewel in the crown" is a revolutionary new way to test the grading of mineral samples that is relatively cheap and very accurate.

They are looking at going o/seas to expand this product. Dividend expected in April next year. 

With the resource boom the way it is - there should be plenty of demand in it. The last foray I made into a company that made fusion equipment was Vision systems - I hope this ends up doing half as well!!!

Would be interested on what others think about the share (particularly yours YTrader - as mining seems to be your area).

Duckman


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## Out Too Soon (10 November 2006)

Looks interesting but as a brand new listing it will be a while before the market starts to take notice. Prob a good investment if you're very patient. I,ll be watching but I'm too impatient to get in at this stage. 
I think YTs doing exams atm.


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## LifeisShort (22 November 2006)

There was a very good write up about this stock just after it listed. I can't remember which firm put out the note but if anyone is interested let me know and I'll retrieve it for them as I have it but archived somewhere.


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## LifeisShort (2 December 2006)

Strangely there is no interest in the stock. Its trading under its listing price of 20c but if forecasts are reached then at the moment its trading at a P/E of around 7. For a leader in its niche field and the biggest company of its kind here and overseas (there are 2 worthwhile competitors but are smaller than XRF) its must be stock thats still new and overlooked. Patience is probably the key but at these levels its a cheap stock. The company has made profits, stated that it intends to pay a dividend and is exposed to the mining industry....surely thats saying something. Lets hope others have a good look at this company and give their thoughts. Like I said in my previous comment I have a an excellent write for anyone who is interested.


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## Duckman#72 (2 December 2006)

LifeisShort said:
			
		

> Strangely there is no interest in the stock. Its trading under its listing price of 20c but if forecasts are reached then at the moment its trading at a P/E of around 7. For a leader in its niche field and the biggest company of its kind here and overseas (there are 2 worthwhile competitors but are smaller than XRF) its must be stock thats still new and overlooked. Patience is probably the key but at these levels its a cheap stock. The company has made profits, stated that it intends to pay a dividend and is exposed to the mining industry....surely thats saying something. Lets hope others have a good look at this company and give their thoughts. Like I said in my previous comment I have a an excellent write for anyone who is interested.




I've bought for the long term. Agree with all you've said.

Can I please get a copy of your article  -I might already have seen it but I'd like to have another look anyway. Thanks muchly.

Duckman


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## LifeisShort (4 December 2006)

Here is the write up for XRF


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## LifeisShort (13 December 2006)

Why is this stock sold below its issue price is beyond me. Why would anyone sell who got in at 20c is beyond me. Anyone care to come up with any answers. My guess its xmas time and people need cash. I suppose its still an unknown stock and investors get to know it will be a different story.


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## LifeisShort (8 January 2007)

Price has dropped to 16.5c.....Floated at 20c. According to figures in the prospectus the predicted p/e for 2007 is around 8 @ 20c. This now equates to around 6.5 at current price.....I'm not sure about anyone else but this company is seriously lacking some pr campaign as it has an excellent niche market not only here but overseas as well. Perhaps a lack of understanding by investors.....I'm batting for this baby as I like market leaders in their field and established companies with good management and of course dividends.


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## Duckman#72 (25 January 2007)

Hi Life is Short

Has any news come to light about this share?

Very  low volumes but continuing sales at around 17c and 16.5c. Would it be just impatient investors that are disappointed that SP hasn't rocketed after IPO and want out?

Cheers

Duckman


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## LifeisShort (25 January 2007)

The problem with this stock is that it has lack of news and lack of coverage which equals to no one really understanding the company as yet. Once people catch on to it Duckman you'll see it rising. Those buyers picking it up at these levels are doing smart business IMO. One has to have patience with this one. I'm still convinced this is a long term winner based on forecasts and growth prospects and industry its in. Unfortunately at present people are losing patience and are selling out but it won't last long. Hopefully there will be some company announcements soon reinforcing my beliefs. Every time I look at mining companies moaning about the backlog of metallurgical analysis at present think about this......its XRF that is performing these tests.....meaning that this part of the business is going great guns and they should have lots of work lined up in the metallurgical testing sector. This augurs well.


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## GRTRADER (26 January 2007)

I think they really need to redo their website it looks like they got a kid to do it - and thats being rude to the kid.


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## LifeisShort (26 January 2007)

Precisely, and promote themselves a bit more


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## Duckman#72 (9 February 2007)

Hi All

When this first came on the market the CEO was talking about being "committed to paying a dividend in April". Has anyone heard about this and when will they be announcing this to the ASX?

No love for the stock as yet!!

Duckman


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## LifeisShort (9 February 2007)

Duckman#72 said:
			
		

> Hi All
> 
> When this first came on the market the CEO was talking about being "committed to paying a dividend in April". Has anyone heard about this and when will they be announcing this to the ASX?
> 
> ...




No one has heard anything from ZRF since they floated really......perhaps its all just an illusion...somebody needs to teach them some pr work because I believe reading from the prospectus that they are a good company but for some reason are not putting out anything on the market.....being a new company you'd think they would try to drum up some support, do some roadshows, presentations, updates that all is going well but noghing. One just needs to have faith...but then again....faith can burn you.

I'm sticking until I hear something. Its the don't sell if there is no reasonable reason to do so (is lack of announcements a good enough reason....not in my opinion).


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## Duckman#72 (9 February 2007)

LifeisShort said:
			
		

> No one has heard anything from ZRF since they floated really......perhaps its all just an illusion...somebody needs to teach them some pr work because I believe reading from the prospectus that they are a good company but for some reason are not putting out anything on the market.....being a new company you'd think they would try to drum up some support, do some roadshows, presentations, updates that all is going well but noghing. One just needs to have faith...but then again....faith can burn you.
> 
> I'm sticking until I hear something. Its the don't sell if there is no reasonable reason to do so (is lack of announcements a good enough reason....not in my opinion).




I'm with you Life. I was very impressed with the snippets of information I had read about the company. But it seems to have fallen into the black hole of the ASX. 

Like you - I'll be keeping them...... but..........they need to start developing a corporate image, that's for sure.


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## Duckman#72 (8 March 2007)

You still holding these Life?

Just continues to drop albeit on very little volume. You hear anything?

Duckman


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## LifeisShort (8 March 2007)

Duckman#72 said:
			
		

> You still holding these Life?
> 
> Just continues to drop albeit on very little volume. You hear anything?
> 
> Duckman




i'm out duckman, wasn't impressed with the report and not hitting their targets outlined in the prospectus. better plays elsewhere. i still think long term could be a good play


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## Trader Paul (12 January 2008)

Hi folks,

XRF ..... figure this one should be strong this week, as a positive
aspect comes into play on 15-18012008 ... 

have a great weekend

   paul



=====


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## ROE (4 November 2008)

I just recently got this stock on my specs, Great potential and I time it so I can collect maiden dividend as well


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## ROE (18 September 2009)

surprise no one pick up this little gems
No debt, making decent money, pay high dividend compared to recent share price... but I think the Mr Market start to notice it this week


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## Fool (12 January 2010)

Up 15% today, check out the stock doctor's review.


http://client.lincolnindicators.com.au/sg_current/index.html


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## ROE (18 January 2011)

Fool said:


> Up 15% today, check out the stock doctor's review.
> 
> 
> http://client.lincolnindicators.com.au/sg_current/index.html




I got this at 11 cents ...got the maiden dividend .. I load up a bit more at 15 cents 
then profit dropped off due GFC, profit now accelerate back

EPS will be around 2 cents or better this year and if they stick to their 50% payout
one cent dividend please this year  

volume and price indicate some sort of good news out soon (hope so), it powered up around 25% in a week
with very decent volume ..way way more than trading average..

I cant view that link it need login and password


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## ROE (9 February 2011)

This should stir thing up 
http://www.microequities.com.au/download/more/?path=admin/reports/XRF09022011.pdf


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## ROE (29 July 2011)

Another super stars on the rise
watch out folks ... 
this one is small but command nice monopoly due to patents


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## skc (30 July 2011)

ROE said:


> Another super stars on the rise
> watch out folks ...
> this one is small but command nice monopoly due to patents




Good update recently indeed. Let's hope the price stays up through the US troubles so I can buy into the SPP without hesitation.


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## notabclearning (30 July 2011)

my valueation is around 10c


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## skc (30 July 2011)

notabclearning said:


> my valueation is around 10c




Really? Do share your valuation method? 

Here's mine for reference.

Normalised profit before tax = $4m. NPAT = $2.8m or 2.25cps. At PE multiple between 10-14 you get 22.5c to 31.5c.


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## ROE (31 August 2011)

Once cent dividend coming in October ...

Revenue strong
Very nice Margin increase 
Economy of Scale
Strategic Investment in a Canadian start up 

time to slowly move to mid-cap 

I took up equity raising, bought more during recent panic ...all add up to a nice dividend cheque this year...


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## McLovin (4 November 2011)

ROE said:


> Once cent dividend coming in October ...
> 
> Revenue strong
> Very nice Margin increase
> ...




ROE, what do you make of note 9. Specifically the increase in past due accounts from $600k to $1.5m. The note says they relate to a "number of independant customers" but don't give much more detail.


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## ROE (8 November 2011)

McLovin said:


> ROE, what do you make of note 9. Specifically the increase in past due accounts from $600k to $1.5m. The note says they relate to a "number of independant customers" but don't give much more detail.




I haven't been paying attention where do you see this?
Probably someone forgot to pay their bills  see if this figure grow or decline in the next 
few reports ... could be a once off thing ...be alert but don't be alarm.


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## McLovin (9 November 2011)

ROE said:


> I haven't been paying attention where do you see this?
> Probably someone forgot to pay their bills  see if this figure grow or decline in the next
> few reports ... could be a once off thing ...be alert but don't be alarm.




Hi

It's in the annual report, note 9, p48. There's also a further breakdown in note 2(b) p41. I'll wait to see whether that amount has moved from "up to 3 months" to "up to 6 months" in the half yearly report.


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## ROE (24 February 2012)

share price break  52 week high
profit up 58%

enough said


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## McLovin (24 February 2012)

Great company and another great result.


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## prawn_86 (24 February 2012)

Still kick myself for not getting in on these guys around 10c.

Just had a quick look at their reports and am i right they aren't paying a dividend any more? Or do they only pay one once a year?


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## McLovin (24 February 2012)

prawn_86 said:


> Still kick myself for not getting in on these guys around 10c.
> 
> Just had a quick look at their reports and am i right they aren't paying a dividend any more? Or do they only pay one once a year?




They don't pay interim dividends...


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## VSntchr (24 February 2012)

Looks like XRF is back on track to a path of steady growth..
Assuming the second half is slightly better than the first (as management have hinted at) we could see XRF breaking the 30c mark..


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## oldblue (24 February 2012)

> Still kick myself for not getting in on these guys around 10c.




Ditto here.

I've long harboured the theory that CPB will eventually bid for and take over XRF although maybe it's too small at this stage for CPB to notice them! CPB have a history of growth by acquisition although XRF would be more of a supplier to them rather than a competitor.

Any comments on this?


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## ROE (24 February 2012)

oldblue said:


> Ditto here.
> 
> I've long harboured the theory that CPB will eventually bid for and take over XRF although maybe it's too small at this stage for CPB to notice them! CPB have a history of growth by acquisition although XRF would be more of a supplier to them rather than a competitor.
> 
> Any comments on this?





Campbell is one of XRF bigger customer so it make sense at some stage when they spent enough money buying equipment from XRF, may as well own it 

What is good for Campbell usually good for XRF ....it has been like this for a while now
Campbell came out with decent profit, XRF followed ....


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## ROE (24 February 2012)

VSntchr said:


> Looks like XRF is back on track to a path of steady growth..
> Assuming the second half is slightly better than the first (as management have hinted at) we could see XRF breaking the 30c mark..




Last year Terry Sweet told investors he want XRF to be a 70m cap in the next few years
look like he's on track ..

I say second half EPS at least 1.5 to 2c


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## McLovin (29 March 2012)

Hmmm...CEO retires "as the next steps in the implementation of its [the company's] strategic plan" but they have no replacement as of yet. 

Strange.


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## ROE (29 March 2012)

yeah fairly sudden exit, wonder if he has a fall out with the board?

He has been a good CEO.


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## ROE (27 August 2012)

XRF. complete the circle of ever increasing dividend
Profit up 36% dividend increase 50%

Buy and hold still alive and well


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## tremmas (6 September 2012)

Any thoughts on the effect of Aus mining capex slowdown on XRF's future growth?

Obviously all mining services have been hit lately. I'd expect XRF to be able to diversify outside of mining, expand overseas and through acquisitions but I understand that it's the resource sector that has driven the majority of growth to date.

If you removed all resource expansion in Aus what is the bottom line for XRF?


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## prawn_86 (19 October 2012)

tremmas said:


> Any thoughts on the effect of Aus mining capex slowdown on XRF's future growth?
> 
> Obviously all mining services have been hit lately. I'd expect XRF to be able to diversify outside of mining, expand overseas and through acquisitions but I understand that it's the resource sector that has driven the majority of growth to date.
> 
> If you removed all resource expansion in Aus what is the bottom line for XRF?




Yeh i too would be keen to hear other members opinions of the above? I think a slowdown probably will affect them, but how much of their business is from existing mines etc? And how much comes from exploration?


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## McLovin (20 February 2014)

tremmas said:


> If you removed all resource expansion in Aus what is the bottom line for XRF?




Revenue falling off a cliff, apparently.

Anyone still holding this? ROE??


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## ROE (20 February 2014)

McLovin said:


> Revenue falling off a cliff, apparently.
> 
> Anyone still holding this? ROE??




I got out around 32-34c when I see the miner squeezing their capital on Service companies
and this stock still holding up well ... I make a calculated bet that wont be the case so I exit.

seem my gamble pay off, looking to re-enter at a lower level.

This isn't the first time, revenue tend to fall off the cliff every so often then it bounce back
look like this thing is more cynical than I thought..so enter when revenue fall off the cliff and exit when it racking up profit seem like a way to go...reasonable safe stock if buying at the right price.

plenty of cash, steady bolt on acquisition and management seem fairly conservative


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## galumay (20 February 2014)

I never bought, but still have on my watch list. I still like them, the equipment they make is still required by established downstream mineral processing laboratories so their core business should hold up, growth will be slow with the wind down of expansions and the lack of new processing projects currently.

They also supply consumeribles such as flux for XRF fusions which is a market thats holding up better, even if companies dont upgrade to new hadware the consumeribles are still needed.

The results come off the back of a very good year previously and they had warned of the coming impact, time will tell whether they can hang on and then grow the business in the future. They do have some competitive advantage in a small market, they are very well known and highly respected with only one main competitor. 

I calculate an IV of around 30c based on the EPS this year and pretty flat growth in the short term.


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## oldblue (21 February 2014)

There's no real sign that this will happen but perhaps it's time for my favourite theory about XRF to play out with ALQ making a bid for one of their small, but important, suppliers?


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## CBerg (22 October 2018)

I dipped my toes into XRF in August & again this month, anyone else holding? Early indications from the 2018 report indicates they're off to good start, extra $200k in the bank from just July and with customers spending on capex & their European branch almost break even.


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## galumay (22 October 2018)

I haven't run my ruler over them for a while, so I am not sure. Your post has rekindled my interest so I will have a look.


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## CBerg (23 October 2018)

Strange action on no announcement today. Started out down to $0.145 but closed up at $0.16, I guess a few people getting in/out before any announcements at the AGM coming up.


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## barney (23 October 2018)

CBerg said:


> Strange action on no announcement today. Started out down to $0.145 but closed up at $0.16, I guess a few people getting in/out before any announcements at the AGM coming up.




Interesting ….. I have to say that I don't like the Chart (just yet), but the signs of life near the lows are always interesting and often worth watching ….. just a bit early for me at this point Good luck with it anyway "C"


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## galumay (23 October 2018)

Had a look again, cash flow is still the problem for me. Not investible at this stage.


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## CBerg (29 October 2018)

CEO's presentation at the AGM out this morning, great numbers for 1st quarter.
Consumables: $2.34m vs $2.22m
Capital Equipment: $1.78m vs $1.18m
Precious Metals: $3.14m vs $2.26m
Total: $7.26m vs $5.6m

I'm keen to see the cash flow improve too @galumay, hoping these early reports continue throughout the year.

http://www.aspecthuntley.com.au/doc...lc2lnbmFsL2Vycm9ycGFnZXMvcGRmZGVsYXllZC5qc3A=


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## galumay (29 October 2018)

It remains on my watch list @CBerg


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## galumay (27 March 2019)

I have been having another look at XRF after being asked about it on Twitter. I chased up some more scuttlebutt from my former workmates in Labs and I am probably as positive about the business as I have ever been! 

The cash flow is starting to really improve as the increased revenue starts to flow through to the bottom line. Its still not at a point where I would take a position, but its definitely on my close watch list. 

My biggest concern is whether the revenue growth is substainable, fusion machines last a very long time, there is almost no organic growth for the business in Australia in the medium/long term so its very dependent on continuing global growth - and it probably has to come at the expence of other manufacturers.


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## omac (30 July 2019)

Had a good run in the last 6 months. Here's hoping the orders have remained strong and new facilities are running well. I'm still undecided as to whether the upgraded facilities were genuine expansion or just normal cap ex required to stay competitive, but I think its been well run and acquisitions have made sense.

I think cash flow will be much improved this half given momentum in the last half and a seemingly consolidated product offering, they refreshed their machines at the right time in the cycle 5 years ago and if they see strong CF from now they would have expanded at the right time too.


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## galumay (30 July 2019)

Just not sure there is any sustainable organic growth going on, I get a nasty feeling this will be their one good year in 10.


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## omac (30 July 2019)

That's my feeling too.


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## CBerg (30 July 2019)

My holdings started out green today before you 2 started gas bagging. Can you keep going as I want to pick up another parcel before results for sub $0.20


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## galumay (30 July 2019)

I think if you are patient you will pick them up sub 20c again.


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## CBerg (27 August 2019)

My cash flow did not allow me to pick up another parcel but I wish I had, the earnings came in right around where I thought they would this year but the cash flow certainly beat my expectations.

Keen to see them repeat this year but I think there will be headwinds. I think there's a bit of activity in the mining sector that is being kept under wraps. I also like the fact their European sales are growing at a steady pace, especially if they're picking up aerospace customers, I see that as a real growth sector there in the coming years and if they can pick up a slice of that I'm happy.


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## barney (27 August 2019)

It was a rough ride down to the January lows earlier this year, but anyone holding would be feeling a lot happier at the moment that's for sure (DNH)


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## galumay (27 August 2019)

The question to be asked is this as good as it gets? Its such a tiny market, with such a long life for the hardware and XRF has a habit of having one good year every now and then.


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## CBerg (27 August 2019)

I appreciate the skepticism as it means I need to think about it more compared to other opportunities available. My overarching theme for why I bought the company was because I wanted to be exposed to upside of material sciences in the coming years as I think material science has had and will continue to have a dramatic impact on our day to day lives, even if we don't notice day to day, hell even if people don't notice full stop.

I'm happy they sell a solid product to be honest. I appreciate that aspect as a consumer when I think about buying a car etc. & I'm sure businesses do when evaluating vendor decisions for equipment.

I'm also big on cash flows to me personally from business earnings and I notice only in FY2010 have dividends not been paid, I think that's a pretty decent track record given the market turmoil that went on.


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## galumay (27 August 2019)

My skepticism is borne of having worked for many years as a lab analyst using XRF and their competitors equipment and consumables. My comment is not specifically about XRF's hardware, fusion machines are very simple machines with long lives and its not like there is much of a growth market in processing plants coming online that need them. XRF have been optimistic about the potential in new markets like the cement industry, but from what I read fusion beads are not the preferred method with cement.

I don't think its a bad little business, but I don't see the sort of growth a few have predicted since it came to the attention of more investors this year.


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## Klogg (2 September 2019)

galumay said:


> My skepticism is borne of having worked for many years as a lab analyst using XRF and their competitors equipment and consumables. My comment is not specifically about XRF's hardware, fusion machines are very simple machines with long lives and its not like there is much of a growth market in processing plants coming online that need them. XRF have been optimistic about the potential in new markets like the cement industry, but from what I read fusion beads are not the preferred method with cement.
> 
> I don't think its a bad little business, but I don't see the sort of growth a few have predicted since it came to the attention of more investors this year.



Hi @galumay, I'm curious to hear more about this. Even at current prices, XRF doesn't seem too expensive, but I need to understand the market a lot more... my knowledge in this space in minimal.

If you could expand on this a little, that would be awesome. Specifically the usage of their hardware/fusion machines, and how much competition there was at the time you were using them?

(Sorry, I'm taking a shortcut here, but I'll need to go back at some point and learn everything anyway. Just checking if it's worth doing the legwork)

Thanks!


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## galumay (2 September 2019)

Sure Klogg, here is the content of an email from a discussion with another investor from earler in the year, hopefully it helps a bit, its informed by a discussion I had with a senior Chemist at a lab to check my view was still relevant. There are about 4 major manufacturers of Fusion machines, as an example we had one from each of two of the manufacturers in our Lab. As my Chemist mate noted, loyalty is mainly along geographic lines, so XRF are never going to sell many fusion machines in the Middle East or Americas.  

_"My mate says the 80% market share for Australia sounds about right, he is less sure that it would be as high as that globally. Edge is geographic, Australian mines and refiners bought XRF Scientific because of local support and supply. One fusion machine is much the same as another, I have used several different ones over the years, they are all good when they work well, they are pieces of **** when they play up! (Pouring molten ore and flux into the gas burners and blocking all the orifices is one favourite trick. The Lab trainee gets the job of cleaning them!)

He says Labs usually use platinum ware from same supplier, consumables more likely just from whatever bulk chemicals supplier they use, so could be anyone.

I dont know about the non-mining, customisable labware, I imagine its a tiny market, probably already serviced by someone, tough to break into I would have thought with not much growth potential. But thats just gut feeling. As an example I see they are doing a product for milk producers, well they will already be using someone else's labware at this point, its not stuff that wears out or breaks easily, so why would you buy from XRF?

My questions to your dot points would be,

The expansion, new products, new offices may well move margins upwards somewhat, but were they ever good enough to make it a great business?

I would be careful extrapolating growth in machine sales to platinum ware and consumables, any replacement of old machines wont have that effect. Is it just a short term growth in machine sales, given the life of them and how few new mines or refineries come on line, this could be an unsustainable spike in revenue.

I think the low multiple reflects a basket of stuff, lumpy earnings, not much growth over the years, unpopular sector, small, unnoticed business, I suspect it would have to be able to have more than just one good set of numbers to move the dial much!

Ok, so thats a really negative response to your summary, but I suspect thats what you are looking for. 

On the other side of the coin, I have a really quick and dirty set of metrics that i put a company through before I do any sort of deeper research, I end up with a FCF that I then use to feed into a ROIC or (CROIC as some call it). On that basis it sneaks in with an assumed ROIC for the full year in the range of 6%. From there I need to convince myself its going to improve over time from that lowpoint, and that there are reasons to have a level of conviction about earnings growth. I reckon I could work up a case for investment at current prices based on those very rubbery numbers, but so far I actually think there are more productive homes for the capital by adding to positions I already hold.

I have found that is one of the hardest biases to overcome, the thrill of becoming a part owner of a new business as opposed to the boring thing of just adding to an existing part ownership!

Another way I try to think about investments is probabilistically, and XRF looks ok from that perspective, I dont see much downside from here, the market has very low expectations as it is, so its likely that even flat sales and earnings would see the price stay much the same. If they can put a couple of halves of solid growth in revenue and have that flow right through to the cash flow then its certainly not hard to see maybe 50-100% upside over a couple of years._

_Thanks again for entertaining my amateur thoughts on XRF and investing in general, I feel I have so much to learn and its a bit awe inspiring sometimes being in discussions with seasoned professionals like yourself - but its great to get a chance to articulate my thoughts to a critical audience!_"


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## galumay (2 September 2019)

Klogg, this is also worth reading for the point of view that a small group of investors tend to collectively hold about XRF, they are mainly investors I respect so its been an interesting divergence of opinion!

https://www.livewiremarkets.com/wir...numbers-close-to-light-at-the-end-of-the-tube


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## Klogg (10 September 2019)

galumay said:


> Klogg, this is also worth reading for the point of view that a small group of investors tend to collectively hold about XRF, they are mainly investors I respect so its been an interesting divergence of opinion!
> 
> https://www.livewiremarkets.com/wir...numbers-close-to-light-at-the-end-of-the-tube




Thanks a lot for all the input.

All the high quality investors piling in is half the reason I looked at it. I just don't know enough about the industry, so the learning curve is too steep for me. I'm playing in a whole new world, one where I don't feel comfortable, so I left it.

Nevertheless, thanks again for the posts. They were very informative!


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## CBerg (31 January 2020)

I picked this for the February tipping competition as I believe they're going to post a solid half year result in late Feb.

First quarter update during the AGM was good bar the capital equipment division which as galumay has pointed out can be lumpy depending on where we are in the capex cycle, other divisions posting solid growth.

A large holder has been selling their holding for a while now which I think is also keeping a lid on the price.


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## CBerg (21 February 2020)

Good half year as expected.
Massive trading action(compared to prior years) happening today as a result of the good news is my impression.

Digging into the numbers further, Australian sales didn't match prior periods but Canada(+26%) & Europe(+40%) more than made up the difference.  Massive improvement on NPAT however. I imagine Skye Alba(large holder previously mentioned) is happy to be exiting on this news.


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## divs4ever (2 September 2021)

XRF Acquires 50% of Orbis Mining

XRF Scientific Ltd (“XRF” or “The Company”) is pleased to advise that it has entered into a binding but
conditional Share Purchase Agreement ("Agreement") to acquire 50% of the shares in Orbis Mining Pty Ltd
("Orbis") from Brad Hunting and Darrin Hunting ("Founders"). XRF has further acquired a Call Option to
purchase the remaining 50% of the shares currently held by the Founders.
The Agreement is conditional on the satisfaction or waiver by 31 October 2021 (or such other date which is
agreed) of various conditions precedent. Material conditions precedent include the Company being
satisfied with its due diligence enquiries in relation to Orbis, there being no material adverse change in
relation to Orbis, various third‐party approvals being obtained and the Founders entering into employment
agreements with Orbis.
Orbis is a manufacturer of laboratory jaw crushers, primarily used in the mining sector. The business was
founded in 2014 by Brad Hunting and Darrin Hunting and is currently based in Mandurah, Western
Australia. It is one of two known companies in the world to produce a highly efficient double acting jaw
crusher. Orbis utilises a unique and patented component that allows for samples sizes of up to 110mm to
be crushed down to 2mm in a single pass, which allows most users to avoid multiple processing steps.
Read more about Orbis at: https://www.orbismining.com/
For FY21 Orbis produced unaudited revenue of $2.3m and profit before tax of $0.34m. The business
currently has a blue‐chip customer base of commercial laboratories and miners.
Key Acquisition Benefits
 A low risk, bolt‐on acquisition with highly complementary products: the majority of our existing
customers require jaw crushers
 Given current sales opportunities at hand, Orbis’s revenue and profits have the potential to grow
rapidly in the short to medium term
 Orbis has addressable markets significantly larger than XRF’s own existing capital equipment
products
 Further diversification of revenue into the gold mining sector: Orbis’s products are used in gold
assaying processes such as Fire Assay and Photon Assay
Acquisition Price of first 50% shareholding
 $600,000 in cash and $200,000 in XRF shares. The cash consideration will be funded from XRF's
cash reserves. The XRF shares will be issued at the 10‐day VWAP prior to settlement and will be
issued using XRF's available placement capacity under ASX Listing Rule 7.1.
 XRF will make a $500,000 working capital loan into Orbis.
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 The acquisition is subject to the conditions precedent mentioned above and provided all conditions
are satisfied, the sale is expected to settle by 30 September 2021.
 XRF will appoint two directors to the Board of Orbis, with the remaining directors of the board of
Orbis comprising the Founders.
Call Option to acquire the remaining 50% shareholding in Orbis and Earnout
See attached schedule for key terms.

courtesy of Bell Direct
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DYOR

i hold XRF currently up 140%


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## galumay (2 September 2021)

Not sure about value of the acquisition, jaw crushers are basically ever lasting pieces of equipment. I cant remember ever seeing one replaced in a Lab. Pretty well reliant on new Labs for any sales. I guess its only a small business so not much risk.


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## divs4ever (2 September 2021)

only buying 50% ( so far ) using shares  plus cash 

 so i guess it depends on where in the mining cycle  you think we are 

 i think this  is an unusual high  ( out-of-cycle ) with the proper peak  , built of demand  coming in about 3 years , if the global economy doesn't implode first 

so the question is , will the can keep getting kicked down the road , filling the market with false confidence


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## divs4ever (23 August 2022)

XRF announces record full-year result
XRF Scientific Ltd (“XRF” or “The Company”) today announced its results for the June 2022 full year:
Key Highlights
• Sales Revenue up 28% to $40.0m from $31.3m
• Net Profit After Tax up 19% to $6.1m from $5.1m
• Adjusted Profit Before Tax* up 38% to $8.2m from $5.9m
• Final fully franked dividend of 2.5 cents per share
*Adjusted Profit Before Tax is after adding back/deducting items related to COVID-19 in FY21, which were
nil for FY22. A full break-down of these items is available in the Annual Report.
XRF’s Managing Director, Vance Stazzonelli, commented on the full-year result:
“FY22 was a very strong year with a record profit before tax of $8.2m being generated. All divisions
contributed towards the result, with a high level of activity occurring in the mining sector and growth in
international sales. We continued to diversify our revenue base and increase non-mining revenue,
including growth of our Precious Metals division’s industrial platinum products.
The Consumables division had an excellent year, generating a profit before tax of $4.1m from high levels of
activity in the mining sector. Lithium chemicals are a key production input and have been increasing in
price due to demand from the EV sector. As a result, revenue and costs are expected to continue to rise in
FY23, with no negative impact to margins.
The Capital Equipment division delivered a profit before tax of $1.1m from revenue of $10.8m. Demand for
capital equipment was robust during the year, with customers acquiring new machines across mining and
industrial sectors such as cement and steel manufacturing. Our order book continues to reach new record
levels, with production for some product lines booked out for 1H23.
Our 50% acquisition of Orbis Mining Pty Ltd has been fully consolidated into our accounts and is now part
of the Capital Equipment division. The business performed well and generated revenue of $1.8m during
the June half. The new product line has good forward sales momentum, and we expect to see significant
growth in revenue during FY23. Many sales are occurring within the gold industry, to support the crushing
of samples for photon assay and fire assay.
The Precious Metals division delivered revenue of $18.3m and a profit before tax of $2.8m. We continued
to grow our base of industrial product customers in Europe, the majority of which are expected to generate
reoccurring revenue. The division acquired new customers in specialised fields, including platinum
products to produce medical glass and crystal growth.
Page 2 of 2
We are continuing to see goods levels of reoccurring orders from mining customers, as increased sample
testing requires regular recycling of spent platinum labware products.”
Dividend
The Board has declared a final fully franked dividend of 2.5 cents per share which is up by 25% on last year.
This represents a payout ratio of 56% of net profit after tax. The dividend reinvestment plan (DRP) is
available for shareholders by registering participation at the share registry, Automic Group. A 2.5%
discount will be applicable to the DRP.
Please direct any inquiries to:
Vance Stazzonelli
Managing Director
vance.stazzonelli@xrfscientific.com
+61 8 9244 0600


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DYOR

i hold XRF ( currently up 177% on this )


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## galumay (23 August 2022)

Never understood this one, used XRF products and machines for decades in Labs, the machines last forever, no one ever buys a new one! The consumables have no pricing power and plenty of competition. I first started talking about XRF with other investors and fund managers years ago when they were round 15c, told them all there was no real structural growth possible in this business. One I somehow got entirely, 100% wrong despite having deep inside understanding and info on the business. Spoke to senior chemists in various labs I knew to confirm my views, they all agreed, no potential!! 

Anyway, I got it wrong, significant opportunity cost to me, although i did very well out of the things I did allocate the capital to. Well done to those who saw the potential and backed their judgement!


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