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"Virtually every share is undervalued - according to those invested"
never was a truer word said; you can look across the mining sector and find active producers priced with P/E ratios close to 30 and those close to 3, but all are promoted as undervalued.
We all have to decide for ourselves what constitutes a sensible price at which to make an investment, the extent to which sentiment is actively against a particular company in this sector or the extent to which sentiment is merely below the peaks of 2020's mania for the sector...
So although a meaningless tautology we can say for certain that a company's mkt cap on any given day will be lower than all the days it was valued higher, and higher than all the days it was valued lower.
Virtually every share is undervalued - according to those invested - read the same comments on most boards. Never hear the phrase overvalued! Fenix may perk up if it acquires another prospect. We have our Brockman - which most of us wish to get going.
HH, fair point. They have an agreement to sell 35kt per month @$180 per tonne for about 11 months or so. Assuming they make $110 profit per tonne thats $42m profit over next 11 months. That's more than their current EV. Crazy.
5x5, dividends have been paid but the £59m they have in their bank is their today so more dividends around the corner.
If they were to keep the cash and generate another £60m post tax profits then in 12 months they'd have £120m in cash which will most likely keep growing.
Mcap is £88m.
Crazy times.
Hi HH - You see the share price is stuck here all the buys very little move up - for me this is a HOLD at the moment. Huld!! - Did you follow my tip GGP long last its going to move up alot now
Paid a large part of the profits out in dividends, so most of past profits are out of their mkt cap.
one smart thing Fenix did early on was to hedge to lock in high iron ore prices so that even when open market prices were heading towards $100/t they were still getting paid $180/t.
That surely gave them a huge cash boost with massive profits early on but the fact that situation won't last for ever, and may well have now come to an end, presumably weighs on how the market values Fenix's future as their past turnover won't be representative of future turnover.
A few on here seem to like a listing on the ASX as the Australians appreciate miners. I am just wondering why Fenix are valued at a EV of £29m when it's probably generating £4m a month profit and has enough reserves to operate for another 5-6 years. They do appear to have a exploration license on a new tenement which with £59m in cash shouldn't take too long to firm up. They also acquired the haulage company which will be worth something.
I appreciate Iron ore is low at the moment but is the market pricing in a further drop or is it the uncertainty that is putting investors off.
I ask because they are the most comparable to our Han**** project.
I understand Fenix have a lot less shares in circulation than we do also. But the main difference is they are generating cash. As soon as we have a firm link to cash generation and we can start calculating things like WAC then we are dice throwers. Good news is it does appear to be more and more likely we will start generating cash with every passing month. This is what investing here is about for me. Pick a company with good prospects and stick with them as long as they keep de-risking and moving towards Rev gen. All these peaks and trough give people heart murmurs but it’s entirely expected. Lows are welcome as long as the fundamentals remain intact and results continue to prove and expand the asset. Stick with, average down when you can and…wait.
There was a point which Max pointed out a few weeks back was that a key difference between Fenix and UFO is that they are limited in their ability to expand by increasing their resources via exploration and also their lack of diversity in reagards to their project portfolio. In comparison we have EH/munni with the potential of unlocking billions of dollars of PGM’s and other critical metals needed via JV.
Also one advantage we have is that we have the ability to start production and gradually increase our resource at han**** which could easily reach 30mt and also the potential to attract the majors to JV Brockman and Vivash Gorge.
The market is forward looking and right now investor’s realise that Fenix are generating a considerable amount of cash but with no further catalysts to boost growth in addition to declining reserves after every shipment there isnt much scope for growth there.
https://youtu.be/FDB-DGIKcQU
Deep in the Aussie outback something stirs!
Fenix
Reserves 8mt 63% DSO
mcap £88m
Cash £59m
EV £29m
UFO
Reserves TBC but potentially 10x Fenix at 62% DSO
Mcap £27m
Cash £4m ish
EV £23m
Fenix are generating close to £50m pre tax profits pa so appear to be massively under valued. We are even more massively under valued Vs Fenix.
What am I missing?