FLX - Felix Resources

[Reefer]

Announcement at 4.24pm after market close, and explains the dedicated buying over the past week (by staff of the NSW courts).
The Xstrata/Ulan action has been dismissed so we are away!!!

16 November 2007
Australian Stock Exchange
Company Announcements
Level 4
20 Bridge Street
Sydney NSW 2000
Xstrata’s and Mitsubishi’s legal proceedings on Moolarben mining lease
Felix advised the market on 30 March 2007 that Ulan Coal Mines Limited (Ulan), which is a joint venture of Xstrata as to 90% and Mitsubishi as to 10%, had commenced legal proceedings in the Supreme Court of NSW seeking orders to prevent the grant of a mining lease to Moolarben Coal Mines Pty Limited which is wholly owned by Felix.
The court case was held from 20 September 2007 and was followed by a site visit in early October 2007. The Supreme Court of NSW has today published its decision and dismissed Ulan’s action.
The detailed content of the court’s published decision is being reviewed and, if considered necessary, a further announcement of the impacts on the company and the Moolarben Coal Project will be made early next week.

 

[Reefer]

Re: FLX - Felix Resources Wins Moolarben Case

Guess we shouldn't count our chickens until we see the contents of the decision, but their should not be any constraints in my opinion, so it has to be excellent news. Sorry I sold some a few days back.

 

[noirua]

Re: FLX - Felix Resources Wins Moolarben Case

Guess we shouldn't count our chickens until we see the contents of the decision, but their should not be any constraints in my opinion, so it has to be excellent news. Sorry I sold some a few days back.

I sold 20% of my holding, at an average of $8.02, as well. It doesn't mean we were wrong as it's never wrong to take a profit and many are looking for a takeover bid that may not come.

Felix may well have to purchase the land that is owned by Ulan Mining ( strange that the land was once owned by White Mining, now part of Felix Resources, and they sold it to Ulan Mining and on top of that the Felix present MD, Mr Brian Flannery, bought it from White Mining whilst working for Ulan Mining before the latter was purchased by Xstrata.) and if there in no agreement, a price has to be settled by arbitration with the NSW Mining Warden.

 

[noirua]

Felix Resources recovered to hit $8.28 today after the NSW Supreme Court ruled in favour of their subsiduary Moolarben Coal, after a case was brought by Xstrata's Ulan Mining Co.

 

[Reefer]

Sell side pretty thin Noirua, as they steam up to $8.61. The market likes the Moolaraben decision obviously. Other coal producers a bit mixed after report in SMH re rail quotas being slashed in the Hunter Valley.

This report courtesy of Happytown on WHC thread:

Coalminers at mercy of railway owners

THE fate of several smaller coal producers in the Hunter Valley could hinge on the rail operator Pacific National.

As overstretched infrastructure in NSW and Queensland continues to hamper the coal industry's growth, smaller Hunter Valley producers are sweating on getting any coal at all to port.

It used to be that when a port had to cut capacity, all producers took an equal cut.

But with record prices and infrastructure stretched to the limit, the bigger producers may end up muscling out smaller operators

...

After coal producers shipping out of Newcastle failed to agree on allocations for next year, the Australian Competition and Consumer Commission on Friday night received a proposal to allocate port capacity based on railway contracts.

...

But several small and mid-tier producers - believed to include Donaldson Coal, Whitehaven Coal, Peabody Energy, CVRD and Idemitsu - have been informed by Pacific National that their railway allocations will be slashed.

...

A Pacific National spokeswoman said her company expected every Pacific National customer would gain an allocation under the new arrangements. But she declined to reveal whether the allocations could be cut so much as to render some operations uneconomic.

It is believed it told some producers they would receive only half their requested allocations.

...


http://business.smh.com.au/coalminer...1119-1bfh.html

 

[michael_selway]

Felix Resources recovered to hit $8.28 today after the NSW Supreme Court ruled in favour of their subsiduary Moolarben Coal, after a case was brought by Xstrata's Ulan Mining Co.

Hm it jumped heaps today!

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 7.8 23.0 35.8 50.3
DPS 6.0 4.9 13.8 12.7

thx

MS

 

[noirua]

Hi m_s, Reefer et al, interesting that information on rail problems, all helps keep the thermal coal price up.

The closing price was $8.70, yet another, now, 5 year closing high, market cap $1.70 billion.

Quite a lot of speculation, with Felix not replying to requests for an update on the top 20 shareholders or any comment on possible talks with another party with some major shareholders.

***Due to the highly speculative position of Felix Resources, all comments are my view only and in no way advice to buy, sell or hold stock.

 

[Reefer]

Copped a hammering since momentarily achieving $8.70, albeit in a fractious market. The pattern of trades has not altered though and accumulation goes on, the accumulator/s just getting them at a much lower price as FLX holders take profits, or lose confidence in the lead from the Dow Jones.

 

[noirua]

Copped a hammering since momentarily achieving $8.70, albeit in a fractious market. The pattern of trades has not altered though and accumulation goes on, the accumulator/s just getting them at a much lower price as FLX holders take profits, or lose confidence in the lead from the Dow Jones.

Interesting to see if the selling by more nervous holders is eventually overcome by the buyer - we hope is there.

 

[Reefer]

Ulan puts in an appeal, as per Felix announcement after the Friday close.

Xstrata’s and Mitsubishi’s legal proceedings on Moolarben mining lease
Felix advised the market on 30 March 2007 that Ulan Coal Mines Limited (Ulan), which is a joint venture of Xstrata as to 90% and Mitsubishi as to 10%, had commenced legal proceedings in the Supreme Court of NSW seeking orders to prevent the grant of a mining lease to Moolarben Coal Mines Pty Limited which is wholly owned by Felix.
On 16 November 2007, following the court case, Felix further advised the market that the Supreme Court of NSW had published its decision and dismissed Ulan’s action.
Today Ulan have appealed the decision of the Supreme Court of NSW. As per the original case Felix believes this action is without merit and will be vigorously defended.

 

[michael_selway]

Interesting to see if the selling by more nervous holders is eventually overcome by the buyer - we hope is there.

Hi Noirua, might be good to pick up soem while its off its high you reckon?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 7.8 23.0 35.8 66.7
DPS 6.0 4.9 15.0 12.7

thx

MS

 

[noirua]

Hi Noirua, might be good to pick up soem while its off its high you reckon?
thx MS

Hi m_s, If only I new. There seems to be a bit of a cloud over the mining sector at the moment with very many stocks down 10% to 20% from their years highs.

The prime lending problems are very deep in the US, and as we know, when Wall Street sneezes the UK Footsie catches a cold. That index includes the big miners, BHP Billiton, Rio Tinto, Xstrata, Anglo American etc., and that drag is putting pressure on Aussie miners at home.

Felix Resources will have the worry of the appeal at the NSW Appeals Court that may take between 2 months and 4 months to resolve. Though unlikely, the loser could then go on to the Federal Supreme Court.

Upside is the bouyant thermal coal price and China opening a new power station or two every week. Indonesia has been hit with early storms and Queensland's Dalrymple Port has made big cutbacks and Rio have declared force majeur on deliveries, with their cargos of thermal coal piled up at the Port. Fortunately Felix export out of Gladstone and all goes well there.

Felix Half Year ends on 31/12/2007 and should be the companies best in the last 37 years.

 

[noirua]

Decision of the NSW Supreme Court ( Updated 21/11/2007 )

Ulan Coal Mines Limited v Minister for Mineral Resources & Moolarben Coal Mines Limited:

http://www.austlii.edu.au/au/cases/nsw/supreme_ct/2007/1299.html

( Ulan Coal mines Limited is owned 90% by Xstrata and 10% Mitsubishi - Moolarben Coal Mines is owned 90% by Felix Resources and 10% Sojitz. )

 

[Reefer]

very shallow on the buy side at present. I could take out all the buyers on my own which should see a downward spiral in the SP. Seems to be a never ending supply of sellers, I didn't know there were so many shares available out of directors' hands?

 

[michael_selway]

very shallow on the buy side at present. I could take out all the buyers on my own which should see a downward spiral in the SP. Seems to be a never ending supply of sellers, I didn't know there were so many shares available out of directors' hands?

Hi not bad

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 7.8 20.9 36.0 50.8
DPS 6.0 3.5 13.8 12.7

thx

MS

 

[noirua]

very shallow on the buy side at present. I could take out all the buyers on my own which should see a downward spiral in the SP. Seems to be a never ending supply of sellers, I didn't know there were so many shares available out of directors' hands?

Reports that W.H. Ireland, the U.K. AIM quoted broker and cash startup enterpriser, has been advising shareholders in Felix Resources to sell stock in favour of two other mining investments.

 

[noirua]

Decision of the NSW Supreme Court ( Updated 21/11/2007 )

Ulan Coal Mines Limited v Minister for Mineral Resources & Moolarben Coal Mines Limited:

http://www.austlii.edu.au/au/cases/nsw/supreme_ct/2007/1299.html

( Ulan Coal mines Limited is owned 90% by Xstrata and 10% Mitsubishi - Moolarben Coal Mines is owned 90% by Felix Resources and 10% Sojitz. )

Items listed in the above report at "374" and "375" ( Towards the end), interestingly, now admit that talks were going on between Felix Resources and Xstrata, on the latter taking an interest in Moolarben. An agreed price proved difficult to reach and RMM finally sold their 19.12% stake in Felix Resources to AMCI for $5.00 a share, and this upset Xstrata's representative.

 

[michael_selway]

Reports that W.H. Ireland, the U.K. AIM quoted broker and cash startup enterpriser, has been advising shareholders in Felix Resources to sell stock in favour of two other mining investments.

Hi Noirua, do you know which other 2 mingin investments?

thx

MS


NEWC Index (weekly)
02-Nov-07 82.08
09-Nov-07 83.51
16-Nov-07 84.48
23-Nov-07 88.63

 

[noirua]

Felix Resources closed at the weeks high point of $8.00. The last trade, 100,000 shares, appears to have been a bid price of $8.00, 12 cents above the last trade, and were taken off the fence.

Felix are locked in battle with Xstrata over Moolarben with the next stage at the NSW Supreme Court of Appeal.

White Mining former shareholders have 49.8% of FLX stock and AMCI 19.12%. There must be a feeling that someone may break ranks and sell to a predator or Felix themselves may want to do a deal over Moolarben the moment the appeal judgement is in.

 

[noirua]

Western Plains Resources have again posted good result and this time it is the Tui DSO Prospect, at Hawks Nest tenement (Felix hold 2.25 million shares in WPG, and royalties on iron ore production with SA Gov and the Indiginous peoples): http://www.asx.com.au/asxpdf/20071204/pdf/3168b8g30pr6xb.pdf