Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Cheers for that link. Looking at the buy/sell ratios today, the majority of buys would suggest that the market thinks this new venture is broadly positive for FOX. If it didn't involve FOX at all, then this would be bad news, but the majority stake is surely a positive. In the interview, he suggest that Stone Alliance via the new Kosovan mines now have access to v large quantities of marble, and assuming that marble extraction/finishing is a profitable venture then this is a positive, whether in competition with FOX or not. The extra supply may drop the price but won;t the extra volume dwarf that in terms of the bottom line? Also does this deal not rubber stamp FOX in terms of their reputation, where some seem to be suggesting that FOX is just all smoke and mirrors? Surely that's not an issue now. CG also seems to suggest that the FOX assets are more expensive marble types and therefore serve a slightly different market. I don't know, i'm no expert.. As has been discussed, the source of funding is a key issue. We also we need to see some product being sold by FOX alongside more talk of even more jam tomo ventures.
it's a mess of a plan, badly timed with little chance of success. Sell up, leave CG to his shambolic strategies. I may buy back in when they start to process their own stone - probably with the SP around 5p.
https://www.youtube.com/watch?v=sDF5038C0-0 Chris Gilbert explaining a little about this new development and company. I think what threw everyone was the timing. If Fox Marble were processing their own stone and were cash generative I think there would be a lot of excitement over this. There's a chance to exploit another 40 quarries with an American partner. A guaranteed way to smash your way into the US market with a huge portfolio of stone for prospective buyers and a monopoly in Kosovo. It could be huge. At this stage though it raises a lot of questions, mainly on funding. If fox marble own 59pc of this new company and 100 million euro's need to be raised surely we need to provide circa 60 million of that? As an operator of the quarries would we then bill 41pc of all costs to our partner? The big one is who's going to pony up the money? The plan is to educate the market over the next couple of months and raise the money over a couple of years. It may happen. I suppose if opportunity knocks then you have to grab it. The Kosovan government probably pointed to us a British company while negotiating this deal as a showcase of Western companies operating there. At least you know there will be good corporate governance and transparency if a British company are involved. Still not quite sure what to make of it, at best this is 2 years away from any quarrying. Dual US listing anyone?
Stone 😝
Interesting thoughts. Still, if you are right, short term it could still be good for Fox, given it is further ahead and can, as it were, blaze a trail for Kosovan stone ahead of Aston Alliance gathering steam.
Yes agreed that the polish line delay and the formation of the new company are likely to be linked. I think maybe the Kosovan goverment realise that they are sitting on a load of decent stone and they want their slice too. This new venture allows both parties a back scratching way forward. Prob FOX will get absorbed along the way as part of the deal.. If the goverment have been using delaying tactics with FOX then you could argue that things could start happening rather more quickly now the brakes may be off.... There is risk and reward here but i'm not sure either way atm...
More thoughts: 1. There will be enormous pressure to sell product through Stone Alliance in preference to Fox, and however the deal is financed, gross revenues for sales via SA will be only 59% of equivalent sales via Fox. 2. Kosovo looks set to do for marble what Saudi Arabia has done for oil, i.e. flood the market with excess supply and force down prices. 3. CGs last statement re. the polishing line (mumbled, in his last interview) was that it is at the Kosovo border waiting for customs clearance. Conspiracy theorists among us might think that the Kosovo Govt is holding it to ransom.
The market cap of the new co. will dwarf Fox Marble. We have not been told if the 100 mill they need will be debt or equity. If it is the former, Fox will own 59% of a huge pile of debt. If it is the latter, Fox will have to raise its own funds to retain a 59% ownership, which would mean a massive placing and massive dilution. Fox already has an unlimited resource and they can't sell the stuff, so what are they going to do with 40 more quarries? My guess is the Kosovo Govt wants a piece of the action and Stone Alliance is how they are going to do it. Fox Marble will wither on the vine. There is too much scope here for Enron-style trickery. CG however will profit either way.
I was hoping for a bit of mafia input myself, they are reputedly efficient, Fox could use some of that, not averse to fire-crackers either:)
Palege, I stand corrected - best news all day. Feared mafia infiltration. Will hang back before further investment though. I hope he can put a fire-cracker up a few Fox execs, time we went up a gear.
Stone Alliance is a subsidiary of Fox Marble so I don't see the problem.
Not Kosovan, he's US and with a good track record both military and commercial
Looks like some Kosovan General has just bought himself a Green Card as part of a retirement perk.
more like....
That was exactly my reaction. Their expertise is a joke. Apart from that: 1. Stone Alliance will be in direct competition with Fox Marble. 2. CG will pick up 3% of the planned fundraising, a cool 3 mill for unspecified performance targets. 3. points 1 & 2 together point to a clear conflict of interest.
I can only think the board had a few too many drinks at lunch and did a drunken rns. Anyone that bought in on that are mental.
Wouldn't surprise me if fox was bought up by this new company for a fraction of the price it is now so it can kick-start the new company, or hopefully double the price, either way I think Fox will be swallowed up.
Maybe I'm getting old but can't work out what the scam Is here. In the meantime I'm game for a laugh.
Off the floor laughing after yesterday's announcement. Seriously? This bunch of clowns who have goofed up for so long are now telling us the Kosovan govt *s******s* are engaging them for their 'expertise'. Please, oh please, stop it!!
Good morning, peeps CT, I can see where you're coming from, but can't you also see that when the whole operation is on tap and buyers are falling over themselves for this product, this set up is always going to be the proverbial hokey cokey scenario for rampers, shorters, gamblers and the like. A never ending in-out in-out.......... that's what it's all about
the markets think not enough meat on the bones...Down 10% and not even 9:15 yet...:((
I think this is a very promising development and shows that Fox is seen by the Kosovan Govt as being of national significance. Basing the new company in the US and securing Department of Commerce support is also a pretty smart move. I am sure there will be spin off benefits for Fox Marbles' own sales. This is a bold and ambitious move and to my mind demonstrates confidence for the future and a sense that much of the heavy lifting on existing projects has been done. I am expecting this to be followed up by an announcement on the factory very soon.
just another load of hot air - made me furious initially but in the end I was happy as sold all my holding at 11.50p. Will buy back once the factory is finished.
Market seems to like it but it's pretty meaningless being non binding. Could be great well into the future, it could come to nothing. I will be more interested in the current factory being completed and in use. Still a rise is a rise I will take it. Let's see what happens tomorrow
WT: I would like to take the credit for today's announcement.. I ****tered them at 8:30 this morning . commenting on theirs from the 17th saying "stay tuned they were back" and more info coming in the next few weeks... Somebody read it.. lol oh lol oh lol..