Re Share Talk interview14 Oct 2016 11:04
Great interview in my view and, to my mind confirms that the Stone Alliance deal is very good news for Fox Marble.
It was made clear that Stone Alliance will be entirely separately funded in America and Fox Marble will not be expected to raise funds for this. Fox is currently a 59% shareholder and whilst this may be diluted somewhat as Stone Alliance raises funds and other investors come on board, Fox will still be a significant shareholder and stand to benefit from being part of a multi million £ business going forward. Supported by both the American and Kosovan Govts and with 40 quarries, this will be big.
Furthermore, Fox Marble is to be the operator of all the quarries and will recover all costs plus a profit margin from Stone Alliance, so a significant additional source of revenue.
Interesting also that Chris Gilbert says that when up to scale Fox Marble's profit margins will be 70% so hugely cash generative. There may have been delays in growing the order book but once headway is made Fox will be a veritable cash machine.
Only slight niggle is that only about 50% of the resin and polishing lines are in the factory, with the rest en route from Italy. He says it will all be there in the next few weeks but this does seem to be taking an age. Still, nearly there and when it's finally up and running, watch this share take off. DYOR but I am holding firm here.