Investor opinion shared again31 Mar 2014 22:57
Our view: Fox Marble is doing exactly what it promised shareholders. 2014 appears set to deliver on every promise. 2013 saw excellent progress in developing its operations, first sales have now been achieved and the order book is building rapidly. The global market for quarried marble and processing is supplied through a highly fragmented base of miners. The concentration of mineral production forced by international giants over the past 20 years has somehow passed the sector by, to the extent that Fox Marble is presently the only such dedicated vehicle quoted on an international stock exchange. Yet worldwide trade in dimensional stone is estimated to be worth in excess of US$15bn annually, with an outlook for uninterrupted long-term demand growth in a relatively stable pricing environment. Coming with a very substantial, high quality JORC complaint resource, elementary open pit working, low cost labour and excellent infrastructure against a backdrop of Kosovo’s prospective EU accession, Fox Marble dispels most of the fears normally associated with early stage producers. Having brought four quarries on stream during 2013, 2014 looks set to see earnings turn sharply positive. The 2015 outlook is even strong enough to hint at a maiden dividend. Adopting highly prudent assumptions into a DCF model, Beaufort’s NPV12 calculation arrives at €156m for the Group with gearing to the upside.