FLX - Felix Resources

[noirua]

Felix Resources are now confident on just about every front. Good News comes from virtually every interest.

Latest is the upbeat news from Western Plains Resources, where an announcement is expected to raise the present 14 million tonnes of High Grade Iron Ore at the Peculiar Knob Tenement. FLX have a holding in WPG, through their 90% owned subsiduary, S.A.S.E. and royalties on production.

 

[mmmmining]

Seeing a bit price movement, maybe people think about who is taking over whom now after SXR.TO pull the plug.

The Canadian invasion again, or PDN is on the look out?

 

[noirua]

Seeing a bit price movement, maybe people think about who is taking over whom now after SXR.TO pull the plug.

The Canadian invasion again, or PDN is on the look out?

Hi, struggled to understand the above, maybe a translation problem.

Anyway, Felix have fallen to $4.36 today after hitting $4.74 a few weeks ago. I thought the shares would go through the $5.00 level, so far I'm being proved wrong; Hopefully it's only profit taking.

 

[noirua]

Felix shares have reached $4.48 in trading this morning.

More thought on Mines beyond Moolarben, that should come on stream early in 2008 and reach full production of 10 mtpa by 2011. Athena will be an underground mine that will be larger than Moolarben; A date has not been announced for a go ahead as yet. Felix have a 51% interest.

Athena covers 27,000 hectares and the inferred resource is 560 million tonnes of thermal coal. ( Ash 4.3%, yield 91%, volatile matter 34% and total sulphur 0.3%.)

Athena is owned 51% by Felix, 45% by Soljitze of Japan and 4% by Kores of Korea.

 

[noirua]

Felix shares may be suffering from a block sale of shares by Hargreaves Lansdowne, a UK Broker, who promised to sell stock in FLX for no fee. Felix have recovered some more today at $4.39.

 

[Reefer]

Felix had an intraday low on 13th Feb of $4.19 and has traded sideways for the last fortnight up until the last couple of days. It is now approaching it's annual high with the half yearlys due on Tuesday 26th. May be some good results in the wind. No doubt sales revenue and production are up but they have not up to now quantified the demurrage problem from Newcastle port. Perhaps the diversification through various ports has softened the blow of demurrage compared with other coal exporters. Looking forward to Tuesday.

 

[noirua]

Felix had an intraday low on 13th Feb of $4.19 and has traded sideways for the last fortnight up until the last couple of days. It is now approaching it's annual high with the half yearlys due on Tuesday 26th. May be some good results in the wind. No doubt sales revenue and production are up but they have not up to now quantified the demurrage problem from Newcastle port. Perhaps the diversification through various ports has softened the blow of demurrage compared with other coal exporters. Looking forward to Tuesday.

Hopefully, we'll see the Half Yearly Results this coming Monday, 26th February 07. Demurrage cost Felix $5 million in the previous half Year, but, as you indicate, it's only Yarrabee coal sales that have to pay a burden on this.

The MD had previously indicated, that the older low pricing agreements on thermal coal started to come to an end and profits should increase rapidly throughout 2007 ( Dates of these agreements and when they come to an end, were not given, nor figures on the likely favourable impact in terms of profits ).

Will be interesting to see if FLX pay a first ever interim dividend since coming to the market in 1978, and how profits from asset sales are taxed and whether previous losses ( particularly Ballymoney - $68 million - and S.A.S.E. - $17 million - ) are accounted for.

 

[noirua]

Felix, will hopefully, give details of the position on a go-ahead, by NSW Government, for the Newcastle Dock Extension and the Companies other main interest, the Moolarben Tenement. Talk of delay due to future elections.

 

[noirua]

Half Yearly Report: http://www.asx.com.au/asxpdf/20070226/pdf/3114n84wlgkp4p.pdf

 

[Reefer]

Don't know that the company gave much away with the half yearlys. If you take out the asset sales and the tax advantage, the profit is only marginally better than the corresponding period last year. Demurrage is probably down slightly. They do indicate they have cleared all the lower value sales contracts and new prices are much better. Moolarben go ahead still not sanctioned. Hope the market is not disappointed.

 

[noirua]

Half Yearly Report: http://www.asx.com.au/asxpdf/20070226/pdf/3114n84wlgkp4p.pdf

Reading quickly through this half yearly report, it looks as if the golden times are just over that there hill. Big increases for Thermal and Semi-soft coking coal kick-in early April 2007 and the Ashton Longwall Mine provides the last quarter with full production profits.

$45 million after tax profits, including the Ashton Mining Sale and a $7 million tax return, have helped cash in the bank to hit $36 million despite a large cash requirements to finish the Ashton Longwall Mine and get the Moolarben open-Cut Mine ready to be started on in Mid-2007. ( Moolarben subject NSW go-ahead. )

A large cash sum, $68 million, is due for the sale of 49% of Yarrabee, eventually.

Profits, after stripping out the Ashton Sale and tax return, reached just $10 million. This should increase massively in the second half.

Moolarben is the big one, making no bones about it. The Phillipson Coal sale, Hawks Nest and other Iron Ore tenements, Harry Brandt Mine and the ADC interest at Ausmelt add icing on the cake. Profits from the 51% owned Athena Underground Mine ( 560 million tonnes inferred ) is another big development towards the end of this decade.

Everything to go for at Felix Resources, though we should remember this is a cyclical sector.

 

[noirua]

Felix closed at $4.79, up 9 cents, to a 4 year high. Number One Aussie coal stock on share price performance and MAY still be far from their eventual high, providing NSW give the go-ahead on the Moolarben Project and the Newcastle Port Extension.

 

[michael_selway]

Felix closed at $4.79, up 9 cents, to a 4 year high. Number One Aussie coal stock on share price performance and MAY still be far from their eventual high, providing NSW give the go-ahead on the Moolarben Project and the Newcastle Port Extension.

EXL was the best lol!

hm but evn now, i think CEY will do better at current prices

thx

MS

 

[noirua]

Felix Resources Half Yearly Radio Report by MD, Mr Brian Flannery, " Record Tonnage": http://www.brr.com.au/event/FLX/889/19566

 

[haemitite]

EXL was the best lol!

hm but evn now, i think CEY will do better at current prices

thx

MS

FLX have had a great run, but I think RSP is a better investment from here

BTW, you should look at changing your tagline, if Ducati sees NPV and EPS together it will re-inforce his belief that accounting and cashflow are interchangable

 

[noirua]

After the excellent comments by MD, Mr Brian Flannery, concerning the second half, Felix are now close to $5.00.

 

[noirua]

Felix, one of the strongest performers in the Aussie coal sector, fell 53 cents to $4.35. Interesting, as the companies portfolio is solely in the Aussie sector.

 

[imajica]

the mass panic sell is indiscriminate and myopic

TFE is getting hammered as well

 

[noirua]

the mass panic sell is indiscriminate and myopic

TFE is getting hammered as well

I hope the sellers are being short-sighted too. Despite having been 75% in cash yesterday, i'm suddenly 78% in cash and wondering if I should be brave and buy some of the cashed up miners.

 

[noirua]

A strong finish by number one coal stock, Felix Resources. Closing at $4.67 after hitting $4.30 during the day. Always seems to be a buyer or buyers ready to jump in late on.