Australian (ASX) Stock Market Forum

FLX - Felix Resources

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I think most would agree with your comments, Pacestick, but it doesn't excuse the Company's failure to publicise the items I listed above. Who knows what next we might miss?
I exclude Noirua from these comments as he or she has his or her ear very close to the ground, and probably knows what Flannery will have for breakfast before Flannery does !!
 
Quillan said:
Hi Quillan et al, I think most would agree with your comments, Pacestick, but it doesn't excuse the Company's failure to publicise the items I listed above. Who knows what next we might miss?
I exclude Noirua from these comments as he or she has his or her ear very close to the ground, and probably knows what Flannery will have for breakfast before Flannery does !!
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I suppose we all have to be careful with speculation made in the media. They appear to have got it wrong in many cases over the possible takeover of the company. Some posting on another website, which supposedly came from the company, looks extremely suspect (may have originated in Germany).

There is still some interest in Germany, USA and Canada, and a lot of interest in the UK and Ireland, in Felix Resources (the latter originated from a programme called "Show me the Money" in 2000/2001). Some speculation and share tipping has come from Bloomberg and CNBC, and sometimes proven later not to be accurate.

One of the companies former directors, prior to 2003, held a position with a German Bank, and Felix once had a great prospect in Ballymoney, Northern Ireland.

Interest in Canada stemmed from the companies former gold holdings in Sumatre, they were to be floated in Canada just before the Bre-X disaster hit the markets, for C$300 million, it never happened. Felix still have a 2% royalty interest in the Way Linngo Gold Prospect in Indonesia now owned by Kingrose Mining.

I suppose we all have to be careful what we read now due to the highly speculative nature of the company.
 
The Australian News has reported that the Felix Resources' (51%) managed mine at far distant Minerva will be keeping its 128 workers in employment, Mr Rod hicks, the mines manager, was reported to have said. Mr Hicks said this was the third downturn he has experienced during his career.
Nearby mines managed by BHP Billiton, Macarthur, Rio Tinto and Peabody are cutting back on staff employed at their mines in Queensland.
http://www.theaustralian.news.com.au/story/0,25197,25349743-5013404,00.html
 
noirua said:
The Australian News has reported that the Felix Resources' (51%) managed mine at far distant Minerva will be keeping its 128 workers in employment, Mr Rod hicks, the mines manager, was reported to have said. Mr Hicks said this was the third downturn he has experienced during his career.
Nearby mines managed by BHP Billiton, Macarthur, Rio Tinto and Peabody are cutting back on staff employed at their mines in Queensland.
http://www.theaustralian.news.com.au/story/0,25197,25349743-5013404,00.html
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more evidence that felix went into this recession well prepared. Other companies are laying off staff and already announcing dividend reductions
 
pacestick said:
more evidence that felix went into this recession well prepared. Other companies are laying off staff and already announcing dividend reductions
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Hey not bad today FLX

DJ Yanzhou Coal: In Talks To Take Over Felix Resources27/04/2009 02:37PM AEST
HONG KONG (Dow Jones)--Yanzhou Coal Mining Co. (1171.HK) is in talks to take over Australian coal miner Felix Resources Ltd. (FLX.AU), although the coal market has been affected by the global financial crisis, Yanzhou Director Wu Yuxiang confirmed Monday.

Shandong-province based Yanzhou is also seeking several acquisitions domestically and overseas to expand its coal reserves, Wu said without elaboration.

Australia media reported in December that Hong Kong and Shanghai-listed Yanzhou Coal was in talks to buy Felix for more than A$3 billion.

Yanzhou Coal will fund the planned acquisitions through cash and bank loans, Wu told reporters at a news conference on the company's 2008 results.

Yanzhou Coal, China's third-largest coal producer by market value after China Shenhua Energy Co. and China Coal Energy Co., said Sunday its 2008 net profit doubled to CNY6.49 billion from CNY3.23 billion.


-By Yvonne Lee, Dow Jones Newswires; 852-2802-7002; yvonne.lee@dowjones.com
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910.jpg


Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 51.8 141.5 53.8 97.8
DPS 53.0 59.5 26.0 47.9

thx

MS
 
The company has denied any change from comments made in the last half year report regarding the ongoing talks with a number of companies, that had been held up by market conditions. Looks like continued speculation, imho.

Would the Australian Government allow a Chinese company to take a 100% stake in Felix Resources that would put the control of the Moolarben Project in foreign hands? The mine may reach production of 16mtpa eventually.

Yanzhou Coal would need to bid in cash putting those with capital gains, all of the major holders, in a highly taxed position. Yanzhou has a market quote in America and Hong Kong, but a majority voting share is held by another Chinese company (Yankuang Group formerly The Yanzhou Mining Bureau) which the Chinese Government has a pivotal stake in. A bid by an Australian quoted company in shares and cash looks preferable, but no more than that.
 
Felix Resources have started the week in bullish mood and the market cap is now $2.32 billion. The development of the Moolarben Project in the Hunter continues and the mine target is to produce this coming Spring, with first deliveries leaving the new port at Newcastle in March 2010 - providing BHP sought out the dredging debacle there.

The Minerva mine continues with sales about 8% above target and sales of PCI coal are picking up from Yarrabee with sales into the spot market. The Ashton mine was 1% above target at the third quarter stage and should pick up further with the switch from open-cut to longwall.

Few expect the present bid discussions to come to anything. More likely is a sale of a stake in the 100% owned Yarrabee mine and Wilpeena Project - this would be to secure PCI coal sales.
 
Felix Resources MD, Mr Brian Flannery, has been reported in the Sydney Morning Herald yesterday to have said that the company made its first shipment to China of PCI coal in the last four years, this Quarter, and hopes there will be 10 shipments this year. This coal was sold on the spot market, and has/to be, shipped from the RG Tanna terminal at Gladstone port.
 
pacestick said:
The rise of the aud to 0.80cents can not be good for the companies ability to hold its dividend rate
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Depends if the thermal coal price can rise enough to offset the quickly recovering Aussie - expect another rate cut shortly as Aussie rates should be down a lot lower to fight off reports of recession this quarter.
Up to $67.09 a tonne for thermal coal, spot, out of Newcastle and a lot of Chinese demand for PCI coal out of the Gladstone port: That is being sold on the spot market to China.
 
Both Felix Resources (FLX) (+16.3% to $13.77) and Macarthur Coal (MCC)(+14.9% to $6.25) rose strongly as Credit Suisse raised their target price for FLX to $15 and Macarthur to $6.75.
 
It wasn't long ago that there was talk of Yanzhou Coal bidding $12 for Felix stock. Even the $15 roof price is looking cheap now.
At $13.44 ($2.65 billion market cap) it looks more likely that FLX will move on alone now. As a bid over $20 would be needed (major holders have 69% of the company and they are mostly represented by Directors and Managers of Felix Resources) and it looks most unlikely
 
Price has been going crazy lately. Now up over $15 or +8.7% today.. Must be some takeover rumours on the table, or even some accumulation by a potential acquirer?
 
gfresh said:
Price has been going crazy lately. Now up over $15 or +8.7% today.. Must be some takeover rumours on the table, or even some accumulation by a potential acquirer?
Click to expand...

I'm told, the announcement by Shenua Energy to spend about $58 billion on oil from coal was the main boosting factor for Felix Resources. Felix have a large tenement at Phillipson in South Australia that has between 3 and 4 billion tonnes of sub-bitumous coal: http://www.reuters.com/article/rbssEnergyNews/idUSPEK29325120090611

Felix have opened an office in Adelaide and are drilling the area to firm up reserves from inferred and also for other minerals.

Hopefully, Phillipson, a long held tenement, may now may be worth a bit.
 

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