FOX tipped this morning8 Jul 2015 11:40
FOX has been tipped today by Beaufort Securities as one of their half dozen or so tips for H2'15:
http://www.beaufortsecurities.com/img/pdfs/research/special-reports/beaufort_tips_for_2015_half_year_update.pdf?jujrtyghfud51605a9427836a342a1658a279539
Extract:
""Half Year to 30 June 2015 Comment
Fox Marble will see key milestones fulfilled, including completion of the factory (now completed) and increasing levels of production in Prilep and Malesheva. Significantly, this will lead to the company winning significant orders for its product as its branding, marketing and sales focus continues to develop. It is important to remember that buyers of wholesale marble survive only on their ability to deliver product in the volumes and quality promised; to date, despite having exceptional in-the-ground resource, their confidence in Fox Marble’s ability to extract and process has been lacking. With capacity now about to undergo a step improvement, this concern will quickly be repaired.
Beaufort anticipates revenue climbing sharply during 2015 as more customers purchase its exceptional quality stone and compounding further into 2016 and beyond. Fox Marble effectively has an infinite on-surface resource across a wide range of rare and unblemished marbles. It is presently cash rich (having raised £2m at 20p on 12th May 2015, while capital costs have already been committed with little further expenditure anticipated going forward. Labour and transportation costs are low, yet global demand continues to increase while pricing remains firm and rising. Against this, Group operations looks set to become exceptionally cash generative very quickly, with management committed to annually distribute any the surplus in the form of dividends. The first result of this could even be seen this financial year.
The reality is that the value of Fox’s licences, which place an in-situ value of €16.5bn on just four (or an estimated 28% of its total resource) of its eight quarries, dramatically exceed the Group’s market value. When it has demonstrated its ability to routinely turn elementary extraction and processing into significant profit, the market should start to recognise this fact and power a re-rating of the shares. Speculative Buy""
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