FXR - Fox Resources

[YOUNG_TRADER]

I'm out, made a nice little profit, but FXR doesn't seem to be fully cash flow positive yet, hence why there Quaterly reports are not accompanied by a cash flow statement,

Revenue is up, but cost of sales is also up, hence why even though net loss is down, its still a loss, even though all sales are now unhedged and they have elimated debt, they still need to seek 'financing options' for West Whundo, yuck!!!


A company thats been operating for this long still neeeds to seek financing options?

They have $5m in cash but $6m in trade creditors, nope I don't like it after digging through its Half Yearly, I think thats why it will stall around 42c level which may be a double header,


I may look at re-entry after they sort out West Whundo

 

[YOUNG_TRADER]

I'm out, made a nice little profit, but FXR doesn't seem to be fully cash flow positive yet, hence why there Quaterly reports are not accompanied by a cash flow statement,

Revenue is up, but cost of sales is also up, hence why even though net loss is down, its still a loss, even though all sales are now unhedged and they have elimated debt, they still need to seek 'financing options' for West Whundo, yuck!!!


A company thats been operating for this long still neeeds to seek financing options?

They have $5m in cash but $6m in trade creditors, nope I don't like it after digging through its Half Yearly, I think thats why it will stall around 42c level which may be a double header,


I may look at re-entry after they sort out West Whundo

Hindsight shows my exit @ 41.5c was a good move,

Ann curious what does the chart show now?

I'm not sure what I see, some sort of tripple header @ the 41.5/42c level, but it has hung around well at 39c level, could it still be a hnadle on the cup as you were saying, I am enjoying learning more about charting, its great for entry and exit signals

 

[Ann]

Hello Young Trader,

This may be going to move sideways in a consolidation phase. Probably a wee bit early to say for sure, here is a chart with some thoughts anyway..

 

[YOUNG_TRADER]

Thats some good news, funding for West Whundo sorted out by $4m offtake agreement with the Chinese Company, good to see such strong ties established,


Still I'm going to wait and see what chart produces

 

[kevro]

Hi all, FXR have called a trading halt one day after a share price querie, 2 directors top up and an increase in a substantial holding. Announcement on the way re Whundo I suspect

 

[emma]

Another trading halt yesterday. Comsec's pro-trader shows approx 250000 less buy bids at higher prices, than the normal Comsec site. Any thoughts about why?

 

[GreatPig]

Dunno what the announcement will be, but NAB is showing the current match price at +13.6%, so hopefully it will be positive.

Cheers,
GP

 

[tech/a]

Selling on open

Make my day

 

[markrmau]

T/A, Mind explaining your reasoning here?

I assume you are looking at possible over exhuberence at open on the investors part. And your experience with massive opening bids in these speccie stocks is that the sellers come back in force to take profits once they everyone who is interested in the stock tried to grab it at open.

A classic example was cre yesterday. I was also going to sell on open yesterday, but decided I didn't know how low it would go subsequently, and wanted to ride this winner out. (also so far in profit that the tax implications on missing out on 50% cgt meant it was not worth selling).

 

[tech/a]

M

Its about grabbing that exhuberance.
Time and again I have managed near the top on outs at open.
Sold NDO this morning as well doing the same thing.

These are short trades for me only a few days.
If I see a spike opportunity I will take advantage of it.

The number of times it pays V the number of times I could have gone on to bigger things (particularly with the smalls) and particularly over short time frames is about 3:1.

Its about freeing funds for other opportunites rather than sitting for the longterm.
I do that as well but not on the smalls only on portfolio trading the ASX 200

I also look for pullback opportunities in stocks like FXR.
If it pulls back to a support area and then takes off again then I'll probably re visit,or if it takes out the high of today aggressivley.

 

[ctp6360]

I really wanted to get out of FXR at 1.11 this morning but missed the boat, I am going to settle for 1.08.

 

[ctp6360]

Cool I did really well on this one guys,

I bought 100,000 shares at 42c on 30/3 and sold today at an average price of $1.069 today giving a total increase of 154.52% or $64,758.19 profit, not a bad return for 34 days!

Thanks again for everyone's input to this thread!

 

[YOUNG_TRADER]

Cool I did really well on this one guys,

I bought 100,000 shares at 42c on 30/3 and sold today at an average price of $1.069 today giving a total increase of 154.52% or $64,758.19 profit, not a bad return for 34 days!

Thanks again for everyone's input to this thread!

Nice CTP, you made a ****load


I bought in 20c ish and sold @ 42c level (Money went to TZN @ 70c ) as I didn't like the fundamentals of this stock, I still don't (as in their last qtrly with record high commodity prices their operations were cash flow positive, but not enough to fund West Whundo Development)

But market has really taken to it so congrats to all!
Mkt cap must be well over $120m by now, @ 8x PER lets hope that they can generate $15m in profit soon!

 

[MalteseBull]

There was an article in today's AFR suggesting positive results next month..

Worthwhile buying? Looks like it will crack $1 today the way it keeps going

 

[ALFguy]

High grade copper ore accessed in the open pit

Grade control assays show significantly higher grade than expected

Open Pit mining on schedule and costs 30% below budget

 

[srivest]

High grade copper ore accessed in the open pit

Grade control assays show significantly higher grade than expected

Open Pit mining on schedule and costs 30% below budget

This seem a bit of a subjective news don't wou think ?

 

[ALFguy]

This seem a bit of a subjective news don't wou think ?

You're probably right...so here's the full announcement:

Fox Resources Limited (“Fox”) (ASX code FXR) is pleased to announce that mining of high grade copper ore
has commenced at the West Whundo Copper-Zinc project, with analysis showing significantly higher grade ore
than was initially anticipated under the resource model.

Roche Mining accessed the high grade copper ore in the West Whundo open pit (Figure 1) and has commenced
stockpiling it for delivery to the Radio Hill mill 12 kilometres north of the project.
Fox Resources Managing Director Don Harper said mining of the West Whundo high grade copper ore marked
an important milestone for the Company.

“With a high grade, low cost open pit project such as West Whundo, Fox is well placed to drive shareholder
value while maintaining the Company debt free and unhedged. Fox couldn’t have timed production at West
Whundo any better with copper and zinc metal prices at very high levels.” Mr Harper said.

“The icing on the cake, however, has been the return of grade control assays of the supergene copper ore, from
the Radio Hill laboratory, showing significantly higher grade than expected. Potential now exists to further
upgrade the resource model as more ore is exposed.”

As previously announced on 23 June 2006, the re-optimised pit design indicates the project has a recoverable
metal estimated value of $150 million over a period of 12 months. Eight Reverse Circulation drill holes were
drilled to further extend the copper-zinc resource beyond the current re-optimised pit design. Diamond drilling
for metallurgical testwork has also been completed as the final component for reserve estimation.

Roche Mining has done an outstanding job and the project is on schedule with costs 30% below budget. In
addition to the high grade copper supergene, approximately 36,000 tonnes of high grade copper oxide is already
stockpiled on the surface. Processing options for the copper oxide is currently being examined.

 

[noirua]

This radio report on the nickel finds, 2.4%, 10%, 12.8% and 5.9%, all at shallow depth, seems to give more credence to Fox's expectations. Mr Bruno Seneque, Exec Director gives the " definition " drilling results: http://www.brr.com.au/event/FXR/891/12451

 

[emma]

Up 21.5% today - I think I'll cut and run!!!

 

[ALFguy]

One to watch - closed at an all time high of $1.23 and is now in blue sky territory.