Just so you know, on 9 January FXR traded between 84 cents and 92.5 cents. This is when it was announced that Jinchuan was to take an equity stake of 11% plus options.
So at the time Jinchuan was paying only a slight premium to the share price. The current volatility in the metals markets and Overseas equities markets since 9 January has seen the share price retreat to just under 50 cents.
There is no new surprises here since 9 January other than a few other revenue streams which the market has completely ignored which to me has me baffled since these revenue streams do not incur virtually any cost to produce. Any income from these revenues streams (z-con and construction material) contributes directly to the bottom line.
Fox Resources will turn in a huge profit come 30 June 2008 (comparative to previous years).
Mt Oscar hosts considerable potential based on Cape Lambert's (CFE)close proximity and if they find DSO (haematite) Fox will achieve Don Harper's vision of becoming a $500 million capitalised comapany well within his 3 year plan. (see Announcement 25/10/07).
Nevertheless, there is Iron Ore there and my guess is that Jinchuan were attracted to FXR more for the Iron ore rather than the handful of nickel it has.
Jinchuan took an 11% stake in Allegiance Mining. DeJavu?
Hold on to the stock and let the traders take their profits.
Patience is the key!
FXR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
