FXR - Fox Resources

[RichKid]

Okay folks, been watching this for a few months and now it's time to act for me.

FXR is primarily a nickel and copper play, currently producing and looking to expand. Has been tidying up some deals atm, all finished now from what I can see. Brett Matich, Managing Director is also the MD of Aztec Resources AZR and has some big international investors on his register. See co website http://www.foxresources.com.au for a broker report).

Capital raising led to some dilution which, as you will see from a chart, saw the sp trend down. It's now broken the downtrend on high volume and has settled above support at 45c. I reckon this is cheap considering where it was a year and go and with Nickel firming and recent transactional risks now dissipating.

FXR about to break 50c imo, June 2007 options FXROA provide great leverage, commenced trading in Dec 2004. Currently trading at 11c (all time high 16c), I expect it to go up by 40-50% in the nearterm based on the charts (but I've been wrong before!).
Intersuisse has apparently picked this as their junior nickel producer of choice- that was in January 2005 when FXR was above 50c, so even better value now imo.

With Nickel prices widely expected to surge this year FXR will provide great leverage. It's currently conducting exploration to increase resources and prolong mining operatons. Nickel operation take time to set up so getting into a current producer with more exploration upside ensures it can take advantage of high nickel prices before they start to fall in a couple of years or so.

Downside risk technically is a break below 45c but with current buy depth and volume it looks like the price is about to start the steady move upwards.

The Bulletin's David Haslehurst seems to like this stock (he bought it at 65c) some extracts on the FXR website under 'broker presentations'. I'm looking to enter because of TA trend backed up by sound fundamentals and a strong Nickel price which will provide added leverage in the coming year.

I'll post a chart later, any other holders?

[RichKid]

FYI: Got my small lot of FXROA at 11c. Let's see if my theory in the last post holds. Still quite a bit of FXROA available, not everyone has quite cottoned on to the trend yet imo, a lot of time value left in these oppies as June 2007 is quite some time away. FXR has buyers appearing from the sidelines from time to time so I'll be careful not to place too much emphasis on a lack of depth but it does add to the uncertainty. The end of this week will see me richer or poorer as a result of Fox Resources...

One seller had a big parcel of the options up for sale at 11c, which is what has been supplying the market, the next seller is at 15c so there's quite a gap atm, buyers lined up on the other side at various levels.

[RichKid]

Here are the daily charts. FXR has broken downtrend after last year's capital raising (dilution) and has turned around strongly rejecting lower prices and closing on high volume above what appears to be solid support at 45c. Candles like today's tend to signify strong moves in FXR, especially with volume behind it like today and the recent gapping. More of a price history would have helped a more definite conclusion, settling above 55c on volume would confirm this imo. Last price 51c, high 53c.

Extra leverage via FXROA (options June 2007), huge increases in the last week (understandably), a big seller has almost exhausted his/her supply on offer at 11c today, next offer is at 15c so this may jump real fast since buy depth is good and sell depth is relatively very weak atm. Resistance at 11c.

[RichKid]

FXR has opened weaker, FXROA now at 11c buy and 15c sell, so big spread as that last parcel at 11c was taken out at start of trading. Most shareholders will wait to sell I reckon as sp recovers.
Forgot to mention that FXROA is exerciable at 75c so otm atm but approaching it quickly if this trend holds.

[RichKid]

Weaker close today, still holding up there above 45c. Won't be surprised if this turns out to be a flag formation like in ERG this week.
An investor presentation to US investors was released today, a good overview for anyone new to Fox, might see US dollars flowing in as price graphs in the presentation suggest another Nickel boom is about to start (seems to be one commodity after the other in this resources cycle). We have to give this a few days to see how the price settles.

FXROA, sellers disappeared for a bit there, now ask price is at 12c, only one parcel atm. With drilling to start soon and activity hotting up sp should rise (as they usually do for junior miners at this stage of things).

Any holders out there?

[doctorj]

Richkid,

I do not know too much about Fox and will look into it this weekend and advise you of anything important I uncover. Thankyou for bringing it to my attention.

[RichKid]

No probs doc, hope you find it useful. I'm being very careful this year as any correction will see weak stocks hammered. I want to be in good fundamental stories so that the cash keeps flowing and the trend confirms its strength. Should be some broker reports floating around on FXR if you have contacts. Next week will give some very strong price signals on FXR imo.

[doctorj]

Speaking of unknowns, do you know much about TYC?

It's appeared on my radar in the last fortnight and like you, I'm looking for longer term holds with good fundamentals to supplement my trades.

Apparently they have (and I quote) "a world class copper and gold deposit" in Pakistan. What world class means I haven't looked into yet, but Directors are calling $4/share value to the company. Looking to share information!

[RichKid]

Not standing out atm, on my watchlist for a few months now but it's still just 'promising' not particulary cheap either imo, I prefer clear easy uptrends or breakouts so that dumb TA people like me can see em easily. PM me if you are really keen on TYC.

[doctorj]

I'm keen on the fundamentals of TYC, haven't had a chance to sit down and look at charts just yet. Also after some insight on the soverign risk entailed in a mine in Pakistan.

[RichKid]

I might do intraday charts for this to see how it looks in the next few days, might give us some clues on how to trade it. I missed yesterday's intraday chart so it'll be good if someone can post one here (for Mar9)- thanks in advance. I'll post today's one tonight.

[RichKid]

A weak open for FXR but it's above support (huge buy volume at 45c) and slowly moving up again. Might be buying opportunities for those watching the breakout from the sidelines so we may see more activity soon.

[RichKid]

Okay so no one seems to have posted an intraday for yesterday so here's today. Annct that drilling has commenced, results due as soon as something happens, which could be tomorrow or Monday or next Month! Nice build up , buyers appeard from sidelines after weak start, a stable finish, needs to keep going higher to rejoin pre-fall price levels.

[RichKid]

FXROA has finally broken resistance at 11c, now 12c. With FXR going strong that initial high risk period is almost over. Let's see when this starts cruising.

[RichKid]

Intraday for Friday.

[doctorj]

Announcement this morning of hitting significant sulfides, but also a placement at 40c. Thoughts?

[doctorj]

http://www.blackdogsbarking.com/content/insiderail/insiderail-imf21022005.htm

Thoughts?

[RichKid]

Hi Doc!

You have some very odd sites out there in the West! I think the warning at the top of the homepage says it all, very odd.

Don't know why they're attacking Matich, he's with AZR too and we know how well they are doing. I'd rather follow Intersuisse (they picked FXR as a top junior Nickel play in January) than that silly website.

The placements and capital raisings are old news, see the anncts.
Each to his own I guess, if what that site says is true no one should be investing in FXR, obviously I think otherwise and so does the price chart. It's easy to get carried away looking at every source possible. I'm quite comfortable with FXR atm, especially now that FXROA is tracking the sp.
This is not a recommendation to buy, hold, sell or ignore FXR/FXROA. If FXR goes down the gurgler then that's just something I'll have to cop using my stop losses.

Each to his own. Thanks for mentioning the site though, obviously lots of crooks out there in mining too.

[doctorj]

I don't recall how I stumbled on that site, but I check from time to time for anything they might have heard.

I don't understand their position with Matich, but I didn't know he was also involved with RRS. I'd be interested to hear why he left.

[blackdogsbarking]

Q. What do P. Ryan and P. Matich have in common?
A. They are both Ex-Directors of Range Resources Ltd.
AND
They have both been handsomely paid for their activities.

Q. What do P. Ryan and D D Millar have in common?
A. They are both Ex Substantial shareholders of Range Resources Ltd.

But more importantly they all came together for a brief moment in time with a common purpose. It was a brief encounter but not so brief as to prevent them getting all of their agenda items through.

How did P.E. Ryan and P. Matich's paths cross?
What common interest bought them together for that brief but eventful moment in time?
Was it a common love of golf?
Have they shared a corporate box at the AFL?
Are they both blue water sailors?

It gets alot more interesting.... (http://www.blackdogsbarking.com.au/content/mrnothing/mrnothing-patrickryan.htm#17032005)

[crocdee]

blackdog
i agree with you
don't trust any of them

ryan and miller were together in the tech days of rrs where all the shareholders got burnt
i think matich [from memory] sold all or most of his shares around 5.5c before he left and a day or two before the sp plummetted

regards croc

[doctorj]

blackdogbarking

I know Perth's business community is a very small place, but I'd always hoped that the internet was our little window to the real world where the whole city didn't know something in the time it takes you to put the phone down.

The speed in which you found the post, registered and replied was horrifically fast.

[markrmau]

Thanks for the website - potentially an important extra piece in the jigsaw puzzle.

[RichKid]

Looks like FXR is settling in to this recent price range, must be waiting on extent of drilling results, still some time to go though as they have just started. FXROA is slowly creeping up, at these prices every cent is a solid rise.

[RichKid]

Another great result today following on last months anncts, this needs to continue for the risk profile to diminsh siginificantly and for the sp to break through the short term resistance. The Nickel price is testing resistance too, if it all comes together at once FXR will be a real goer as it is already in production. The Ruth Well results are the key to contnued production, this month will hopefully see quite a few anncts as a result. The spread has narrowed in FXROA recently so things are settling down in terms of liquidity too.



Co Annct:
6 April 2005

SPECTACULAR DRILL INTERSECTION AT RUTH WELL

Fox Resources Limited (“Fox”) is pleased to announce a spectacular drill intersection of massive nickel sulphides in the first pass drill program of the newly acquired Ruth Well Mining Lease tenements (refer Table 1);

• 4 metres @ 5.9% Nickel, 8.1% Copper, 0.2% Cobalt from 50 metres;
RWRC210,
• including 1 metre @ 9.5% Nickel, 10.3% Copper, 0.3% Cobalt from 53
metres.

This high grade mineralisation is only 50 metres from surface and has the
potential to significantly increase the mine life of the Radio Hill mining operations.

The ore from Ruth Well would be carted to the Radio Hill treatment plant located only 13 kilometres away.

These nickel and copper grades at Ruth Well have substantially higher tenor
compared to Radio Hill, where the current mill feed is 2% nickel and 1.5%
copper.

A first pass Electromagnetic (“EM”) survey has now been completed at Ruth Well and a number of anomalies have been identified.

Drill testing of these EM anomalies and further drilling of the high grade
mineralisation at Ruth Well will commence later this month, targeting massive
nickel sulphide ore.

The drill rig is currently drilling massive nickel sulphide targets at Radio Hill. The exploration program is consistent with Fox’s strategy of aggressively exploring for massive nickel sulphides within the Radio Hill Nickel Province....

[RichKid]

Fox in a trading halt since Thursday evening, annct due by this Tuesday the latest. Anyone know what it is? Nickel price seems to be having another go at testing long term resistance.

I wonder if they are about to confirm a big find as the last annct was very positive. They need to convince the market that there is enough for long term mining and that it is economically viable. Results so far are positive with high grades and more drilling to come.

On the negative side it could be mechanical difficulties or very poor results or some sort of corporate activity or info on the bfs. Who knows?? Whatever it is the sp is in a very sensitive position, it's just waiting for a trigger to go eitherway quickly imo.

This is a chart of Nickel showing the support at 7.15 for the current top- about to break through?? or will it fail and retrace??

[RichKid]

The annct is out, good news, planning to buy into iro ore, up 10% on the news. See anncts for more info. Still stuck below 55c but that spread is widening so maybe it'll go through, dilution is the problem now, I don't know the maths for it to know if it should go up or down in theory. Most people will know about the annct by Tuesday. IMO the current drilling results are more important in the short term as that would make the iron ore a big bonus. It certainly reduces th risk profile of the co but we have to wait on the bfs. This gives Fox a new lease on life beyond Nickel alone. Once iron ore becomes fashionable again this year I expect a reratings, all turns on the iron ore bfs.

[blackdogsbarking]

These questions need to be answered....
1. Who vended Mt Anketel into FXR?
2. Who previously owned these tenements?
3. How's the Nickel resources holding out in FXR?
(it's last 'company maker' deal)

more.. (http://www.blackdogsbarking.com/content/insiderail/insiderail-imf21022005.htm)

[doctorj]

I appreciate you love the drama (and the extra hits to your website I bet), but please post the information here rather than linking to your own site.

[blackdogsbarking]

Why are Fox Resources paying 20 million in cash and shares for something they previously owened??

questions need answering (http://www.blackdogsbarking.com.au/content/insiderail/news-mtanketel.htm)

[blackdogsbarking]

Details of the five simple steps to turn $0 into $20,000,000 in shares and cash.
The main two players being Brett Matich and Mik "MANY NAMES".

These two first became "totally welded at the hip" when they spent months together facing "drug running charges" of a very serious nature - of which they were found not guilty.

Since these exciting times the Matich team of Paul and Brett along with Mik "MANY NAMES" have controlled, by directorship and/or mind control, many A.S.X. listed companies including, but not restricted to, ACCLAIM, AZTEC, FOX, RANGE to name just a few. All were involved in the failed YANDAL float with their close friend Michael James Giovinazzo, who copped 18 years porridge for punting away the seed capital.

Also note, Matthew Lewis, a former director of Range Resources Ltd, an appointee of Mik "MANY NAMES", has re-surfaced in this latest "little number".

more (http://www.blackdogsbarking.com/content/insiderail/news-mtanketel.htm)

[RichKid]

Details of the five simple steps to turn $0 into $20,000,000 in shares and cash.
The main two players being Brett Matich and Mik "MANY NAMES".

These two first became "totally welded at the hip" when they spent months together facing "drug running charges" of a very serious nature - of which they were found not guilty.

Since these exciting times the Matich team of Paul and Brett along with Mik "MANY NAMES" have controlled, by directorship and/or mind control, many A.S.X. listed companies including, but not restricted to, ACCLAIM, AZTEC, FOX, RANGE to name just a few. All were involved in the failed YANDAL float with their close friend Michael James Giovinazzo, who copped 18 years porridge for punting away the seed capital.

Also note, Matthew Lewis, a former director of Range Resources Ltd, an appointee of Mik "MANY NAMES", has re-surfaced in this latest "little number".

more (http://www.blackdogsbarking.com/content/insiderail/news-mtanketel.htm)

BDB,

Thanks for posting a bit more than you usually do, in fact there seem to be lots of docs on your site on FXR (instead of the usual small blurb), interesting links you show between various parties, not sure how many deals were really at arms length, it's a cosy club out West!

I'm no longer in FXR due to the crazy change of direction, still think there may be more news to come but it's not worth the risk anymore, so much dilution over the last year is no good.

[blackdogsbarking]

update - more supporting documents added

more (http://www.blackdogsbarking.com/content/insiderail/news-mtanketel.htm)

[markrmau]

Damm good results announced today. High grade - stuff you would be happy to sink a shaft to get to - but near the surface, open cuttable.

However, management credibility is close to #1 on my list. From what BDB says, I don't think I will buy.

[Ann]

9 February 2006
Fox pays off debt and ships $4m in nickel and copper

Source: Press Release

Australian Fox Resources Ltd. repays remaining $2 million project debt to Societe Generale and becomes debt free

17th shipment to Jinchuan Ltd in China: Radio Hill nickel concentrate (2,657 wmt @ 9.0% nickel) and copper concentrate (877 wmt @ 27.5% copper) left Dampier on 3 February 2006 with an estimated sales value of AUD$4 million.

All nickel and copper shipped is now unhedged, capitalising on a high current spot price of approximately AUD$20,000 per tonne nickel and AUD$6,700 per tonne copper.
Radio Hill mine operations update

Operations were disrupted for a total of four days in January 2006 due to cyclones Clare and Daryl affecting the Karratha and Pilbara region. In spite of this, Radio Hill maintained solid production to ship nickel and copper concentrates equivalent to an estimated sales value of $4 million.

Fox secures tertiary impact crusher to upgrade the Radio Hill processing plant from 26tph to 50tph

It is anticipated that installation will be completed by the end of March 2006. The installation of this tertiary crusher and the expansion of the copper flotation circuit will improve copper recovery and increase ore tonnes processed thereby increasing metal output at a time of high nickel and copper commodity prices.

[YOUNG_TRADER]

I definately think this is one of the better exposures to record high Copper and Zinc prices, with the Added bonus of Nickel, sorry but rundown is very brief do your own research


Company Has 115m shares (fully diluted) @ 40cents = $45m approx (Options are way out of the money for now)

Has gone from $2m in debt to completely debt free in past few months, is making regular shipments to China with Gross values of between $3m - $4m (has offtake/direct supple agreements with Chinese Company) Is cash flow positive but difficult to put a dollar amount on it, due to very poor disclosure (Risk ??? )

Has good mine life reserves, is installing new crusher to upgrade output,

Is about to start production from 'Whundo Copper Project' JORC 900K t @ 25 Cu + 1.4% Zn, will also be a DSO operation to same Chinese Company


Added to this Chart suggests once stock breaks above 40cents its headed towards 55cent level



I liked it so I bought a few weeks back

Happy investing

[YOUNG_TRADER]

West Whundho Copper + Zinc drilling continues to deliver as expected,

Stock appears to have broken above 40cents, thus forming new base/support level, next target 55cents?


Surely someone else follows this stock

[YOUNG_TRADER]

Anyone else see FXR's close to the week?

Chart looks very good indeed, not to mention its fundamentals, can't wait to see share price when zinc production starts

Happy Investing

[123enen]

I have been looking at this for a couple of weeks. Good potential and the T/A guys would probably say there is a good trend developing.

Anyway I have placed my buy bid for Monday.

[YOUNG_TRADER]

I use fundamental analysis to select which stock to buy and tech on what price to buy (or when to sell at) however my tech analysis is weak and so I would like some charters to comment on a chart, nothing too complicated (ie no fibonachi or any of that) just a brief view?

Thanks in advance

(I already hold FXR)

[danc]

day week month pointing up,lots of green candles,adx on rise in all,volume under its tail,coming out of a base low,fundies are sound,THE TREND IS UP,go go you good thing.

[YOUNG_TRADER]

I topped up today, lots of profit taking + Cu & Ni price drop on LME,

But it did give away alot of gains in 1 day

[YOUNG_TRADER]

Trend failure? signalling sideways or down trend?

Or


Consolidation? ? ? ?


I think its consolidation but a lack of buy depth says otherwise :confused:


Thoughts? ? ? ? ? ? ? ?

[Ann]

Hello Young Trader,

I am not seeing consolidation. I am seeing action but on this chart I am taking a dual view. I can see a bearish Elliot Wave but I can also see a potential Cup and Handle. If it is successful I have added my figures for a potential swing trade outcome.....

:)Ann

[YOUNG_TRADER]

Well from a fundamental point of view, in the next few weeks FXR should get a leg up for 3 reasons

1. New Upgraded mill capacity should be finished by end March allowing for increased Ni + Cu output for its DSO to China (Note the value of these shipments have been steadily increasing

2. West Whundo Cu + Zn mining should commence very shortly allowing the company to cash in on booming Zinc Prices


3. Another shipment of DSO Ni + Cu to China should happen in next 2-4weeks

[YOUNG_TRADER]

2 Directors buying, see todays ann

1 Director bought 500k @ 41cents

Other bought 300k @ 41.5cents


You know what they say about directors buying their own company stock(Well I hope you do, cause I don't know the answer :D )

[Ann]

Hi Young Trader,

This tends to indicate the faith of the directors in their company....that is the theory.

.....However sometimes the directors have to buy out a large holder and if the owners didn't buy, a large sell order on the open market could depress the price considerably.

In this instance I feel it could be for the first reason but I am just a mug punter taking a wild guess!!

[YOUNG_TRADER]

Hi Young Trader,


In this instance I feel it could be for the first reason but I am just a mug punter taking a wild guess!!


Aren't we all? :bananasmi

[YOUNG_TRADER]

Still not sure to make of Fox, in the past after a good rise, it would consolidate allowing its RSI to drop to 50 for a few days before taking off again, however its on the brink of a DT as well,


Ann what do you make of it today?

[Ann]

Hi Young Trader,

I am seeing a retrace in the price but not unexpected as it is still in the formation of the 'Handle' phase of the pattern. Whenever I have a coffee I like a decent handle to hang onto, don't you? Got to give it time to form...be patient! ;)

[YOUNG_TRADER]

Hmm chart now looks ok don't you think ann?

This week will be interesting to see how chart pans out, could be set for higher level 46c maybe, or trend could still turn (although I doubt or at least hope not lol)

[poor]

chart more look like v shape then u shape and right edge is somewhat above the left edge. It could be double top instead of cup handle.

[YOUNG_TRADER]

Chart looking good, techies your thoughts?

Ann?

[YOUNG_TRADER]

As I'm not a techie/charter (although I do try) FXR's recent price/chart performance has left me a little confused, hence I looked at its fundamentals again,

Fundamentally speaking this company is cashing in on record high Copper Prices and some very high Nickel Prices, very soon it will start cashing in on even more Copper credits and Zinc as well,

Its upgrading its Mill Capacity and it will start mining from Whundo in the next few weeks, so while the next 2weeks is going to be quiet, Come April we should see renewed interest in this un-appreciated Nickel Copper and Zinc producer

[Ann]

Hi Young Trader,

There is a lot of selling pressure at these levels from people who caught a falling knife. I think a lot of them are just happy to sell for what they paid. Once it can get over that resistance line its battle may not be so hard but who knows. The resource sector seems to be a bit shaky at the moment and by the look of the longer term view, its fall must have been quite painful for some!

I can't get any clear indication from the chart as yet. The fall today is not out of the ordinary in the life of a handle formation...

[poor]

ann,

the fall on the end of april...if you have noticed its right after huge price gap upwords due to a positive new and then a long fall. if you search the groups and see the stories why this happen then u can understand why some ppl are happy to sell for what they paid.

[Ann]

Hi Poor,

Welcome to Aussiestocks.

I had a quick look at the notices but nothing really jumped out at me. You seem to know stuff about them how about a bit of info to fill in the gaps?

Thanks
:)Ann

[poor]

Ann, hope below article from my archive explains



The West Australian
June 07, 2005

Matich bales out as Fox dumps ore deal
JOHN PHACEAS

The iron ore ambitions of nickel miner Fox Resources are in tatters, following the shock resignation of founding chief executive Brett Matich and the dumping of Fox's controversial $18 million deal to buy the Cape Lambert iron ore project.

Mr Matich quit during a Fox board meeting on Friday at which millionaire nickel investor Terry Streeter was appointed as a non-executive director. Mr Streeter also agreed to pump $2.5 million into Fox after fellow nickel miner Western Areas, of which Mr Streeter is a major shareholder, pulled out of its earlier deal to buy a 17 per cent stake.

But Mr Streeter's support was conditional on Fox also quitting its foray into iron ore through the Cape Lambert acquisition, which Mr Matich had previously lauded as a "potential company maker".

"I decided that . . . if I was going to make any movement towards a board position at Fox Resources, then I wasn't interested in the iron ore project and was only interested in their nickel which has a lot of potential," Mr Streeter said yesterday.

Investors welcomed the changes, sending Fox shares 6 per cent higher to 35¢ and partially recovering the stock's losses since it peaked at 56¢ in April amid early enthusiasm for the Cape Lambert deal.

Announced with great fanfare on April 22, the Cape Lambert acquisition was heralded as giving Fox access to an "advanced world-class magnetite iron deposit" only 10km from Rio Tinto's iron ore port.

To acquire the former Robe River Iron asset, Fox agreed to pay $2 million in cash and issue 25 million ordinary shares plus 25 million 75¢ options to privately-held Mt Anketell Pty Ltd in a deal then worth over $18 million.

But evidence has since emerged which raises questions about the merits of the deal.

Department of Industry and Resources records show Fox successfully applied for two exploration licences (E47/1211 and E47/1212) over the same Cape Lambert ground in 2002 but withdrew its applications on November 11 last year.

The applications are depicted on a map in Fox's 2004 annual report as the Nickol River prospect, and almost directly overlap the map contained in the April announcement of the deal with Mt Anketell.

Mt Anketell applied for the Cape Lambert ground on October 28 last year - the same day the company was registered - and was subsequently awarded a new licence (EL47/1462) for the area in February.

Mr Streeter yesterday said he was unsure if Mt Anketell's Cape Lambert leases covered the same ground. His sole concern was that Fox should focus on its Radio Hill nickel mine and tene ments near Karratha.

"I'm not sure what tenements they are - all I'm interested in is the Radio Hill, Mount Sholl and Ruth Well (nickel) projects," he said. "There's quite a lot of work to be done there. (But) I think they've got a great future . . . these sorts of nickel systems are quite hard to find."

In a show of support for the company's renewed focus, Mr Streeter agreed to provide a 12 month loan for $1 million paying 8 per cent interest, convertible to 2.86 million shares at 35¢ each. He also pledged to pay another $1.5 million for 4.28 million shares at the same price by August.

To implement its strategy after the resignation of Mr Matich, Fox elevated Radio Hill chief Don Harper to the role of managing director. Mr Harper has spearheaded the Radio Hill mine since Fox acquired the project in 2002.

Mr Harper yesterday said the reshaped Fox board did not believe it was wise to pursue Cape Lambert at the current time, and that the iron ore strategy had "really been driven by Brett Matich".

"We as a board just don't feel that it's appropriate at this early stage to pursue that," he said. "We're in a fantastic position being nickel producers in a climbing nickel market.

"We've got the people, we've got the project and now we've got the backing so we have to get really focused on finding some more nickel."

[YOUNG_TRADER]

I think it was a good move, Nickel Copper Zinc and Iron ore is just too much,
Not to mention the Cap Ex that would have been required for the Cape Lambert Project,


Anyway it would seem that this battle between Bulls and Bears at the 37-42c price level will come to an end very soon,

I think the company will release an ann very soon updating about New Copper Zinc development + Mill Upgrade (Increased output) + New Shipment of ore to China + Half Year results showing a much improved result due mainly to unhedged sales on record high copper and good nickel prices,

They must be having good cash flows as they paid off their $3m debt and also wacked a few $m into upgrading their plant output mill.

[YOUNG_TRADER]

Well Half Year results did show improvement.

rev up 50% and loss down 30% but it was still a loss and although subsequent to balance date they have paid off all debt, cash flows do seem to be thin hence why they must seek finance options for West Whundo.

On the plus side West Whundo is getting go ahead, great Copper Zinc project and unbelievable timing as Both are at near record high levels, and further good zinc grades.

Am a bit confused on what to do with this one.

Ann and others what does chart show?

[YOUNG_TRADER]

I'm out, made a nice little profit, but FXR doesn't seem to be fully cash flow positive yet, hence why there Quaterly reports are not accompanied by a cash flow statement,

Revenue is up, but cost of sales is also up, hence why even though net loss is down, its still a loss, even though all sales are now unhedged and they have elimated debt, they still need to seek 'financing options' for West Whundo, yuck!!!


A company thats been operating for this long still neeeds to seek financing options?

They have $5m in cash but $6m in trade creditors, nope I don't like it after digging through its Half Yearly, I think thats why it will stall around 42c level which may be a double header,


I may look at re-entry after they sort out West Whundo

[YOUNG_TRADER]

I'm out, made a nice little profit, but FXR doesn't seem to be fully cash flow positive yet, hence why there Quaterly reports are not accompanied by a cash flow statement,

Revenue is up, but cost of sales is also up, hence why even though net loss is down, its still a loss, even though all sales are now unhedged and they have elimated debt, they still need to seek 'financing options' for West Whundo, yuck!!!


A company thats been operating for this long still neeeds to seek financing options?

They have $5m in cash but $6m in trade creditors, nope I don't like it after digging through its Half Yearly, I think thats why it will stall around 42c level which may be a double header,


I may look at re-entry after they sort out West Whundo


Hindsight shows my exit @ 41.5c was a good move,

Ann curious what does the chart show now?

I'm not sure what I see, some sort of tripple header @ the 41.5/42c level, but it has hung around well at 39c level, could it still be a hnadle on the cup as you were saying, I am enjoying learning more about charting, its great for entry and exit signals

[Ann]

Hello Young Trader,

This may be going to move sideways in a consolidation phase. Probably a wee bit early to say for sure, here is a chart with some thoughts anyway..

[YOUNG_TRADER]

Thats some good news, funding for West Whundo sorted out by $4m offtake agreement with the Chinese Company, good to see such strong ties established,


Still I'm going to wait and see what chart produces

[kevro]

Hi all, FXR have called a trading halt one day after a share price querie, 2 directors top up and an increase in a substantial holding. Announcement on the way re Whundo I suspect

[emma]

Another trading halt yesterday. Comsec's pro-trader shows approx 250000 less buy bids at higher prices, than the normal Comsec site. Any thoughts about why?

[GreatPig]

Dunno what the announcement will be, but NAB is showing the current match price at +13.6%, so hopefully it will be positive.

Cheers,
GP

[tech/a]

Selling on open

Make my day

[markrmau]

T/A, Mind explaining your reasoning here?

I assume you are looking at possible over exhuberence at open on the investors part. And your experience with massive opening bids in these speccie stocks is that the sellers come back in force to take profits once they everyone who is interested in the stock tried to grab it at open.

A classic example was cre yesterday. I was also going to sell on open yesterday, but decided I didn't know how low it would go subsequently, and wanted to ride this winner out. (also so far in profit that the tax implications on missing out on 50% cgt meant it was not worth selling).

[tech/a]

M

Its about grabbing that exhuberance.
Time and again I have managed near the top on outs at open.
Sold NDO this morning as well doing the same thing.

These are short trades for me only a few days.
If I see a spike opportunity I will take advantage of it.

The number of times it pays V the number of times I could have gone on to bigger things (particularly with the smalls) and particularly over short time frames is about 3:1.

Its about freeing funds for other opportunites rather than sitting for the longterm.
I do that as well but not on the smalls only on portfolio trading the ASX 200

I also look for pullback opportunities in stocks like FXR.
If it pulls back to a support area and then takes off again then I'll probably re visit,or if it takes out the high of today aggressivley.

[ctp6360]

I really wanted to get out of FXR at 1.11 this morning but missed the boat, I am going to settle for 1.08.

[ctp6360]

Cool I did really well on this one guys,

I bought 100,000 shares at 42c on 30/3 and sold today at an average price of $1.069 today giving a total increase of 154.52% or $64,758.19 profit, not a bad return for 34 days!

Thanks again for everyone's input to this thread!

[YOUNG_TRADER]

Cool I did really well on this one guys,

I bought 100,000 shares at 42c on 30/3 and sold today at an average price of $1.069 today giving a total increase of 154.52% or $64,758.19 profit, not a bad return for 34 days!

Thanks again for everyone's input to this thread!

Nice CTP, you made a ****load


I bought in 20c ish and sold @ 42c level (Money went to TZN @ 70c :D) as I didn't like the fundamentals of this stock, I still don't (as in their last qtrly with record high commodity prices their operations were cash flow positive, but not enough to fund West Whundo Development)

But market has really taken to it so congrats to all!
Mkt cap must be well over $120m by now, @ 8x PER lets hope that they can generate $15m in profit soon!

[MalteseBull]

There was an article in today's AFR suggesting positive results next month..

Worthwhile buying? Looks like it will crack $1 today the way it keeps going

[ALFguy]

High grade copper ore accessed in the open pit :)

Grade control assays show significantly higher grade than expected :D

Open Pit mining on schedule and costs 30% below budget :eek:

[srivest]

High grade copper ore accessed in the open pit :)

Grade control assays show significantly higher grade than expected :D

Open Pit mining on schedule and costs 30% below budget :eek:

This seem a bit of a subjective news don't wou think ? :sly:

[ALFguy]

This seem a bit of a subjective news don't wou think ? :sly:

You're probably right...so here's the full announcement:

Fox Resources Limited (“Fox”) (ASX code FXR) is pleased to announce that mining of high grade copper ore
has commenced at the West Whundo Copper-Zinc project, with analysis showing significantly higher grade ore
than was initially anticipated under the resource model.

Roche Mining accessed the high grade copper ore in the West Whundo open pit (Figure 1) and has commenced
stockpiling it for delivery to the Radio Hill mill 12 kilometres north of the project.
Fox Resources Managing Director Don Harper said mining of the West Whundo high grade copper ore marked
an important milestone for the Company.

“With a high grade, low cost open pit project such as West Whundo, Fox is well placed to drive shareholder
value while maintaining the Company debt free and unhedged. Fox couldn’t have timed production at West
Whundo any better with copper and zinc metal prices at very high levels.” Mr Harper said.

“The icing on the cake, however, has been the return of grade control assays of the supergene copper ore, from
the Radio Hill laboratory, showing significantly higher grade than expected. Potential now exists to further
upgrade the resource model as more ore is exposed.”

As previously announced on 23 June 2006, the re-optimised pit design indicates the project has a recoverable
metal estimated value of $150 million over a period of 12 months. Eight Reverse Circulation drill holes were
drilled to further extend the copper-zinc resource beyond the current re-optimised pit design. Diamond drilling
for metallurgical testwork has also been completed as the final component for reserve estimation.

Roche Mining has done an outstanding job and the project is on schedule with costs 30% below budget. In
addition to the high grade copper supergene, approximately 36,000 tonnes of high grade copper oxide is already
stockpiled on the surface. Processing options for the copper oxide is currently being examined.

[noirua]

This radio report on the nickel finds, 2.4%, 10%, 12.8% and 5.9%, all at shallow depth, seems to give more credence to Fox's expectations. Mr Bruno Seneque, Exec Director gives the " definition " drilling results: http://www.brr.com.au/event/FXR/891/12451

[emma]

Up 21.5% today - I think I'll cut and run!!!

[ALFguy]

One to watch - closed at an all time high of $1.23 and is now in blue sky territory.

[kennas]

This looks great.

[ALFguy]

Yeah was looking at the chart Kennas and couldn't believe I missed a buy in after it broke $1. Still, plenty of upside here so will be watching very closely this week.

[richardau1]

Any one have any info on fox resources trading halt?

[michael_selway]

Yeah was looking at the chart Kennas and couldn't believe I missed a buy in after it broke $1. Still, plenty of upside here so will be watching very closely this week.

**** do these guys produce zinc?

thx

MS

[katanaman]

FXR has announced a gold joint venture with newly listed PIM today. :)

PIM = Prime Minerals. PIM's IPO went very well too.


ms - Yes, FXR has exposure to Zinc. Also Nickel, Copper, and Gold.

[katanaman]

More good news..

High Grade Whundo Drill Results Announced 3-JAN-2007. :)

[exgeo]

FXR is producing 45t/day of copper in concentrate from West Whundo (announcement 17/8/06). They plan to increase this to 50t/day by Oct 06 (14/9/06 announcement). Mining at West Whundo is currently planned to end in Feb 07, but presumably the good exploration results below the current pit may allow mining to continue until 2008 as the company hopes, increasing mine life from 1 year to 2 years (1/8/06 June quarterly). Although West Whundo contains zinc, I could find no mention of revenue from zinc. This is because the plant is only able to produce nickel and copper concs.

9/10/06 Acquires Elizabeth Hill processing plant for $500k. This will allow FXR to produce a zinc concentrate. Currently they can only produce Nickel and Copper concs. Also 500k Oz Ag in tailings come with the plant ("worth" AUD $8.6m at US $13/oz). Plant located 5km from the Ayisha zinc deposit (not yet in production - still being drilled) and 16km from the Radio Hill plant.

21/12/06 Strikes a deal with Straits Resources (SRL) to sell their stockpiled copper oxide ore from the West Whundo pre-stripping. FXR’s own plant is unable to process oxide ore. They will receive $1m upfront, $1m on delivery of the ore, and up to $2m dependent on the copper price after processing the ore.

22/1/07 2.5 year nickel mining reserve announced as part of BFS on re-starting underground nickel/copper production at Radio Hill. Targeting 2 year mining reserve at the B2 nickel deposit for an overall nickel mine life of 4.5 years. The underground part of the operation (Radio Hill mine) will not need capex because the mining infrastructure is already in place from previous mining campaigns. During the first underground portion of the campaign, 4084t nickel and 5481t copper in concs will be produced. The B2 deposit contains 30,400t nickel and 35,700t copper.

Financial
Assumptions: Cu cash cost US $1.45/lb (from Sept quarterly, 1/11/06), production 45t Cu/day (99,000 lb/day), Cu price US $2.58/lb, USD/AUD = 0.75c, 117.5m shares, 182 days in 6 months.

((2.58-1.45) * (99,000* 182)) = US $20.3m * 1.33 = AUD $27.0m = 23c/share (for 6 months).



Things to bear in mind
1) The above per-share number is not an EPS number (perhaps closer to EBITDA).
2) This calculation takes account of Copper revenue from West Whundo only. West Whundo is currently scheduled to be mined until 2008 unless further exploration extends the deposit.
3) Copper production was planned to increase from 45t/day to 50t/day in the last quarter of 2006.
4) FXR no longer has any hedging or significant debt.
5) There is the payment of up to $4m for the oxide copper sold to SRL (timing of payment uncertain) and revenue from the last Nickel production at Radio Hill (timing and dollar amounts uncertain).
6) FXR are also planning to re-start nickel production and produce a zinc concentrate using their newly-acquired plant.
7) The copper price received may be higher than what I have used in my calculation. I was trying to be conservative.
8) There are 25.2m 30/6/07 75c options outstanding, plus 7m unlisted options at various strike prices and dates (all < 100c strike).
9) Of course this is all back-of-envelope stuff; it's just an attempt to quantify FXR's potential in terms of actual numbers, rather than merely approaching it from a technical point of view.

[chops_a_must]

And it looks to be forming a nice head and shoulders formation. Let me know when it gets to 1.20.

[Snakey]

600% increase in resource ann

[richardau1]

Announcement indicates significant upgrade to resources, should take off again!!! :)

[richardau1]

Now im confused by Fox - is there value here or not? Any ideas most appreciated.

[Snakey]

Now im confused by Fox - is there value here or not? Any ideas most appreciated.

fox getting hammered because drop in metal prices as with kzl, zfx and others
2007 bad year for these imo

[stumo]

Morning all... very new at this forum... Any idea of the trading halt?

[doctorj]

It's certainly NOT a takeover offer like some are suggesting.

2-2.5yr mine life does not warrent a takeover at those prices.

[viccam]

I would have thought that the lastest news would be positive but, the market hasn't warmed to it. Is this typical of what happens when raising funds.

[doctorj]

Whenever a company does a placement, there's always pressure to the placement price. To my mind, the fact it hasn't fallen all the way back is indicative of one or both of

(i) It was only a relatively small placement, therefore not that much of a concern
(ii) The positives to come out of the announcement outweigh the negatives

Personally, I rather like the announcement and I think there are many positives to come out of it - read it closely.

[exgeo]

From Dec qtly report, 1842t Cu produced at a cash cost of US$1.24/lb. (1842 * 2200) = 4,052,400 lb Cu.

(2.28 - 1.24) * 4,052,400 = US$ 4,214,496 * 1.33 = AU$ 5,605,279 / 126,045,433 = 4.4c/share for the qtr.

Assuming:
Copper price received US$2.28 (as last qtr), 126,045,433 ord shares, AUD/USD = US$ 0.75, only copper produced in this qtr is sold.

[emma]

Would one of our wave specialists like to do a count on this one?

[doogie_goes_off]

Did anyone notice the Cobalt figures quoted in the last presentation? I guess no one had accounted for this but it's a cool $17M worth over the mine life that did not seem to be announced before. I presume they will get paid for this when they ship their concentrates. FXR have a great fundamental plan and will come back (I think).

[doogie_goes_off]

In Profit Today! Hooray for that - See half year accounts - Should see them make a profit for the year as long as nickel production gets up and going.

[doctorj]

Profit was significantly lower that expected. Lower strip ratios in dec quarter hurt significantly.

Change of site and commodity means that money spent on developing stage 2 has been burnt, pending the eventual return to the site. Upside includes unused capacity at Elizabeth Hill.

[kerosam]

Fox Resources is taking a huge beating... not recovering with the rest of the market on the back of last week's news of production at Radio Hill. :(

damn! :banghead:

[chris1983]

I picked some up today. Get them when nobody wants them. This company is travelling well IMO. They raised 10 million in cash at 1.25

[doctorj]

Depends how you look at it. Either they're agile enough to jump aboard what ever is strong or they have the attention span and foward thinking of a gold fish.

[chris1983]

Depends how you look at it. Either they're agile enough to jump aboard what ever is strong or they have the attention span and foward thinking of a gold fish.

You dont think it was a good idea to switch to Nickel production? Even to be able to do this has to be a huge plus.

[doctorj]

I agree that having the option is great.

Taking that option means that they spent a whole stack of money developing the underground and mining waste for stage 2 thats not going to bare fruit for some time. For a company that still looks to rely on capital raising for its survival in a market where raising funds only looks to be getting harder its a little bit of a worry.

I guess the boys at FXR believed that cost/benefits meant switching was good. I'm still sitting on the fence and left wondering if they manage for next year, next quarter, next month or just next week?

[chris1983]

I agree that having the option is great.

Taking that option means that they spent a whole stack of money developing the underground and mining waste for stage 2 thats not going to bare fruit for some time. For a company that still looks to rely on capital raising for its survival in a market where raising funds only looks to be getting harder its a little bit of a worry.

I guess the boys at FXR believed that cost/benefits meant switching was good. I'm still sitting on the fence and left wondering if they manage for next year, next quarter, next month or just next week?

hmm yeah your points are valid. Lets hope this change from copper to nickel works out for them. Its should bring in more revenue due to the price of nickel atm. I thought they were worth a buy due to the price of nickel/strong partners/cash at bank and now bank into production. I think they have been hit quite hard due to the negative sentiment placed on the capital raising and the correction happening at around the same time but true value will shine through. Seems like a sure bet to me as long as it all goes smoothly.

[doctorj]

Also the disappointing half yearly wouldn't have been too well received by the market.

Many brokers were expecting a much stronger bottom line.

[Halba]

This rates poorly on all criteria. Cash at bank, limited reserves, business model is making quick bucks while the boom lasts. Yet their reserves very limited and their mine life/deposits profile ,grades are not sound enough.

[doogie_goes_off]

What rubbish, 2.5 years mine life is common, having two processing plants and the ability to react to market demand is good business sense. Their blue sky targets are high quality. FXR will be there after the boom IMO.

[chris1983]

I picked some up today. Get them when nobody wants them. This company is travelling well IMO. They raised 10 million in cash at 1.25

Well it looks to me as if sentiment on this one is turning around. I think its the booming nickel prices taking effect? Whole reason why I decided to jump in.

'The first nickel shipment from Radio Hill is scheduled for late March. The stockpiled material, grading 0.66% nickel and 1.04% copper (as reported in the 2006 annual report) has an estimated total of 587 tonnes of contained nickel and 925 tonnes of contained copper metal.

"This low-grade nickel ore stockpiled on the surface is the starting point for preparations to mining underground at Radio Hill in April 2007," Mr Harper said.
He noted Fox would be producing copper along with nickel in a bulk concentrate.

This was supported by the company's new offtake agreement, announced on February 19, with China's largest nickel producer, Jinchuan Group Ltd, for a bulk nickel and copper concentrate that allows payment for all nickel produced in concentrate."

Fox is targeting a five year mine life for its nickel business (Radio Hill Mill) and a five year mine life for its base metals business (Elizabeth Hill Mill). The existing mining reserve at Radio Hill enabled Fox to swiftly move back into nickel production and benefit from record level prices while at the same time working up its base metal resources around Elizabeth Hill. Fox aims to commence nickel production in the 2nd quarter of 2007.

Management remains very optimistic about longer-term base metal prices as well as the tremendous opportunity to capitalise on the Company’s growing nickel business. Fox is unhedged, debt-free, profitable and committed to its vision of becoming a mid-tier nickel and base metals miner.

*Currently holding FXR and AGM to take advantage of record nickel prices.*

[chris1983]

A user on another forum site posted this. Thought its important for FXR holders..probably not only important to FXR holders but other copper producers..but I'm a Fox holder so see the article below.

-------------------------------------------------------------------------

RESOURCES
Bloomberg TV

Copper Demand Rises on `Unimaginable' China Growth
By Matthew Craze and Cris Valerio

March 23 (Bloomberg) -- Codelco Executive President Jose Pablo Arellano, who runs the world's largest copper company, said demand for the metal will continue to rise through next year because of ``unimaginable'' new construction in China.

China, the biggest consumer of copper, is ``back in the market'' after record-high prices in May last year forced some manufacturers to slow purchases and rely on their stockpiles, halting the rally, Arellano said. Copper has jumped 27 percent since reaching a 10-month low on Feb. 2.

``They are building cities at an unimaginable rate,'' Arellano, 55, said yesterday during an interview at Codelco's headquarters in Santiago. ``Urbanization in general demands a lot of copper. China is going precisely through that stage of development.''

Codelco, which is owned by Chile's government, previously miscalculated China's role in a copper boom that began in 2002 and saw prices jump 65 cents a pound at the end of 2001 to a record $4.04 on May 11.

Arellano's predecessor, Juan Villarzu, predicted in 2006 that prices would average $1.50 to $1.70 a pound. Prices averaged about $3.06. A year earlier, the company predicted prices would fall.

Arellano, who took over from Villarzu in March 2006, declined to provide a price forecast today. He said strong demand for copper will remain strong for ``at least this year and half of next year.''

Reason for Optimism

``There's reason to be optimistic about this market, particularly when you look at the Asian sector,'' said William O'Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey. ``There's been a constant underestimation for demand.''

Copper prices in New York rose to the highest in more than three months yesterday as China's copper imports in February doubled. Inventories in London Metal Exchange-monitored warehouses have declined for five consecutive weeks, while stockpiles on the Shanghai Futures Exchange have more than doubled, signaling increased imports by China.

-------------------------------------------------------------------------

This is all looking really good for FOX with their second Ball mill also being installed during record prices for nickel and copper prices on the move again.

"SECOND BALL MILL INSTALLED
The second Ball Mill has now been fully and successfully installed (Figure 1) and is undergoing commissioning in conjunction with the existing mill. It is expected the addition of this mill will increase overall production throughput by 50% to 45 tonnes per hour. As previously announced on 2 March 2007, the low grade nickel stockpiled on the surface is currently being used to
produce a bulk nickel and copper concentrate prior to underground production commencing in early April 2007."

[chris1983]

Announcement out. Looking good.

EXCELLENT DRILLING RESULTS UPGRADE SHOLL B2, WHUNDO & AYSHIA

Base metals producer and explorer, Fox Resources (“Fox”) (ASX Code: FXR) today announced positive updates from the Company’s Sholl B2 Nickel Project (“Sholl B2”), Whundo Copper-Zinc Project (“Whundo”) and Ayshia Zinc Project (“Ayshia”). Commenting on the latest drill intercepts, recently appointed General Manager Exploration, Mr. Gus Wolff, explained the strategy Fox will pursue in 2007.

“Fox has the capacity to respond rapidly to changing metal prices and is embarking on an aggressive drilling program to increase the resource base within its holdings in the Pilbara region of Western Australia,” said Mr Wolff.

Full announcement below

http://www.asx.com.au/asxpdf/20070326/pdf/311mmpb73bsthn.pdf

[Moneybags]

I picked some up today. Get them when nobody wants them. This company is travelling well IMO. They raised 10 million in cash at 1.25

Well picked Chris.........certainly looks to be turning around as you say.

MB

[chris1983]

Well picked Chris.........certainly looks to be turning around as you say.

MB

Thanks Money. It was an easy pick this one. It was hit during the correction..it also retraced due to holders being unhappy with the placement price and then the poor recoveries of their copper in the Dec quarter for 2006. Well they are back in production of copper along with nickel in a bulk concentrate.

Looks good to me when your producing the two metals they will be producing. Its all unhedged :P . Nickel is hot atm and Copper is climbing once again. More gains will be seen on Fox IMO. Not going to sell just yet..may even hold on for a year.

[ozeb]

Trading halt. Any ideas why?? hope its good news..still waiting for price to recover.

[chris1983]

Trading halt. Any ideas why?? hope its good news..still waiting for price to recover.

I just got out a day before the halt..did well..if they drop back to under 1.20 with any production problems i'll jump back in.

[doogie_goes_off]

OK mining stock traders, time to take note - the drilling of the first ground EM target has produced 36m of massive sulphide = new discovery plus outstanding undrilled targets. Now I have confirmation I am holding fox until there is significant improvement in price or the takeovers start to lurk. There will be small but notable profit this year if Nickel production runs smoothly. Copper price rise care of BHP's shutdown will help. This little gem is starting to shine again and Fox is on the run...

[doctorj]

The Fox giveth, the Fox taketh.

Long term positive for the company. Having a number of deposits within close proximity to existing company infrastructure is a huge advantage, but this announcement is nothing new.

EM mapping has shown the target has existed for some time. A single drill core with no mention of grades does nothing but confirm the EM mapping works which they knew already or they wouldn't have paid for it in the first place.

This announcement, to me, looks like an effort to stop the sliding SP. I still reckon there will be a placement of sorts on the way.

[doogie_goes_off]

All resource companies try to stop the slide on the share price. Nothing new there. The reason there was a trading halt and the reason they have disclosed the result pre-assays is because they are obligated to report any significant findings to the ASX or people will trade on inside info until the result which will presumably be exciting. It's called continuous disclosure and fox do it better than anyone, pity they don't keep everyone informed when they go to do a placement (they normally do a back room deal and announce it out of the blue). So, in my opinion 36m of "massive sulphide" albeit in two intersections would seem to be significant enough to warrant a trading halt and announcement. Having an EM target IS NOT a sure sign of having sulphide mineralisation. Drilling an EM anomaly and hitting such a wide intersection of "massive suplhide" IS a sure sign, so the assertion that "it was already there" is ill-informed. What this does "prove" is that the EM targets of similar magnitude and form have a good chance of producing massive sulphide mineralisation, something fox has asserted it has a strong record of identifying. Only drilling will tell if this is true, but atleast with this company they will be drilling, not sitting on their hands. In my opinion this will be one of many significant discoveries that fox will make with their no frills locate and drill strategy.

[doctorj]

Geeeez, I haven't had a verbal spanking like that for some time. I hope your faith in FXR is rewarded.

I suspect we may both be right. Short term I don't think this announcement means much beyond an effort to slow the slide in SP in advance of a placement. Long term, they have infrastructure near a number of commercial deposits, which as long as they develop a good long term strategy, they should be able to exploit and benefit shareholders greatly (rather than switching between copper/nickel).

I don't hold, but will at the right price.

[doogie_goes_off]

Sorry if my language was a little terse, I was merely wishing to point out that many companies do EM surveys, define targets and drill something other than mineralisation. Maybe only 1/10 or less EM targets will present as massive sulphide mineralisation once drilled, however fox have found what works for them and have a proven conversion of 'target to mineralisation'. This is a good result and I will be hanging on the results because I guess that they will be good. Yes i have a strong belief in fox, becuase they are a consistent performer. I will be holding unless the market lets them slide below the 1.25 mark which was the last capital raisng price, at which point it would be buy, buy and buy for me. If I could direct the company I would send them straight over to the next large EM anomaly and drill that too, maybe then they could scare people with their strategy. Truth is that it takes significant time to drill these things out and there is a long lead time for any new operation, but a result is a result, there is something new there!

[doogie_goes_off]

Well my faith has not deteriorated any, the exploration position consolidated over the new ground/rights aquired in the last couple of announcements looks like good news, particularly when FXR does not have to run the surveys that De Beers has already done. Sure it will cost for data purchase, but the lead time to come up with even more targets for Fox will be reduced. The question remains "how many discoveries can they make in the Pilbara?" ie: how much "blue sky" do they have, IMO the answer is simple - Heaps!:D

[doogie_goes_off]

I still hold, so I will continue to post and see if anyone can tell me I shouldn't. There was a very close result in the general meeting to see if the company should raise money (10M as I remember) at $1.25 (see release today)which was very cheap at the time they struck the deal. My guess is that we will see organic growth now relying on re-investment of profits from the export of copper, zinc and nickel as the investors who are in for the long run do not want to see dilution. So just watch the money roll in and hope that the new discoveries are as good as they look, so that the profit rolls on for years to come!

[mexican]

I still hold, so I will continue to post and see if anyone can tell me I shouldn't. There was a very close result in the general meeting to see if the company should raise money (10M as I remember) at $1.25 (see release today)which was very cheap at the time they struck the deal. My guess is that we will see organic growth now relying on re-investment of profits from the export of copper, zinc and nickel as the investors who are in for the long run do not want to see dilution. So just watch the money roll in and hope that the new discoveries are as good as they look, so that the profit rolls on for years to come!

Getting a beating!
Can anyone shed some light, as I do hold FXR. I can't work it out.:confused:
I know investers did not like the 2.5 yr life span of Ni mine, still copper and zinc prices are going well and with off take agreements with zinc + Ni and 3000km2 of Pilbara land to explore, surely it must turn around.:banghead:

[doogie_goes_off]

I'm still in for the long haul, bought a few more at 1.12 that looked like a bottom to me. This exploration result is not great, so relying on good continued production

JM

[mexican]

I'm still in for the long haul, bought a few more at 1.12 that looked like a bottom to me. This exploration result is not great, so relying on good continued production

JM

Looks good for a descent Ni strike at Radio Hill F-zone and the 20% increase Ni recovery at the plant is good news, more Ni TPH the bigger the profit!
Still it did not empress the market, very harsh on this stock.:eek7:

[sleeper88]

I'm still in for the long haul, bought a few more at 1.12 that looked like a bottom to me. This exploration result is not great, so relying on good continued production

JM

looks like it hasn't bottomed out yet, reading their half yearly, they're running a small but profitable operation around radio hill, producing Cu, Ni, Zn. Nickel production should be similar to that of AUZ, but this has taken a huge hammering, from 1.90 to 0.90 in 6 months (during a bull market)..anyone care to shed some light?

NB: i dont hold but looking for a bargin if it is one

[doogie_goes_off]

Nice revival in share price (was up near 10% mid morning). The off conductor exploration result is particularly significant. Zinc price has performed very well this year and even though there iks weak copper intersections at conquest ther could be high grade zinc adjacent - zinc does not show up on EM surveys. Nickel in F zone will extend Radio Hill mine life if intersections like this can be repeated. The Managing director also stated on board room radio .com that the head grade of Radio Hill is better than expected from drilling = more output = more cash flow. I hold more than ever after snapping a bargain at 95c. I see plenty of upside, DYOR.

[Col Lector]

Hot off the presses!! No announcement out there on this one. The implications for Fox SP....?


AFX News Limited
Australia's Fox Resources to enter stake sale talks with 2 Chinese cos - report
06.14.07, 10:36 PM ET

BEIJING (XFN-ASIA) - Australia's Fox Resources Ltd plans to initiate negotiations with Jinchuan Group Ltd and Sinosteel Corp to explore possible stake purchases by the two Chinese metal firms, the Wall Street Journal reported.

'We want to start discussions for the opportunity to participate in equity in the new financial year. There won't be a limit on the stake,' the report cited Fox managing director Don Harper as saying.

The new financial year for Fox begins July 1.

Both nickel miner Jinchuan and metals trader Sinosteel already have supply agreements for nickel, copper and zinc concentrate with Fox.

andrew.pasek@xinhuafinance.com

[Col Lector]

Good announcement out today...drilling has confirmed down-dip extension of the F-zone at Radio Hill. PGE's look good. SP up about 4% today in a down mkt. SP has been affected by tax-selling lately...has drifted lower from above $2 to about 85c

HIGHLIGHTS
• F-Zone diamond drillhole 07RHDD078 has returned a best massive nickel sulphide
intersection of 2.2m @ 2.69% nickel, 4.21% copper, 0.08% cobalt, 2.85g/t palladium,0.48g/t platinum and 1.56g/t gold, from 97.1m down hole depth.
• PGE assays for F-Zone diamond drillhole 07RHDD077 returned 4.55m @ 3.3g/t palladium,0.58g/t platinum and 1.69g/t gold from 99.45m down hole depth, including 1.5m @ 7.7g/tpalladium, 1.42g/t platinum and 4.07g/t gold.• Radio Hill surface diamond drill hole RHDD079 is currently at 450m depth targeting
potential massive nickel sulphide extensions below the existing Radio Hill orebody.Target depth is between 800m and 1000m.
• Concentrate production is expected to achieve 2,700 dry metric tonnes, (135t nickel and
189t copper metal) returning a positive operating cashflow of between $1.5m to $2m this
month.
Fox Resources Limited (ASX: FXR) today announced an update on exploration and production at the
Company’s flagship Radio Hill operations in the Pilbara of Western Australia.
F-ZONE NICKEL/COPPER EXPLORATION
Assays have now been received for surface diamond drillhole 07RHDD078 (Figure 1) announced
1 June 2007, which intersected 11m of nickel and copper sulphides from 94.7m down hole depth. The
intersection was 10.4m @ 0.81% nickel, 2.23% copper, 0.03% cobalt, 1.4g/t palladium, 0.24g/t
platinum from 92m down hole depth, including 2.2m @ 2.69% nickel, 4.21% copper, 0.08% cobalt,
2.85g/t palladium, 0.48g/t platinum and 1.56g/t gold.
Platinum Group Elements (PGE’s) assays have now been received for surface diamond drillhole
07RHDD077 (Figure 1) announced 1 June 2007, which intersected 8.7m of nickel and copper
sulphides from 94.7m down hole depth. Best mineralised intersection of 4.55m @ 2.13% nickel,
4.18% copper, 0.07% cobalt returned 3.3g/t palladium, 0.58g/t platinum and 1.69g/t gold from
99.45m down hole depth, including 1.5m @ 4.9% nickel, 7% copper, 0.15% cobalt, 7.7g/t
palladium, 1.42g/t platinum and 4.07g/t gold.“These results are particularly encouraging as it confirms the down dip continuity of F-Zone with high
nickel, copper and PGE grades. Our offtake agreement with Jinchuan allows Fox to capitalise on
credits received for these high PGE grades. F-Zone is outside the current mining reserve and really
has been an unexpected bonus for Fox.” said Managing Director Don Harper.
F-Zone is located 200m west of the Radio Hill orebody where Fox mined two levels before mining
ceased as the Company commenced high grade copper production from West Whundo in July 2006.
F-Zone was excluded from the 2.5 year mining reserve (6,000t nickel, 8,200t copper and 350t cobalt
metal) announced for Radio Hill on 22 January 2007.

[Ken]

Does FXR have cash flow?

Has more than halved in value.

I dont like to catch falling knifes but trying to figure out why it has been sold down so heavily. Does it have something to with the options coming on board?

[doogie_goes_off]

Manging Director told Board Room Radio that people didn't have the cash for options lying around. Later on they underwrote them, seems that if they can excercise for 75c that the price will buffer down to ~80c until the cash has come in. That's my :2twocents worth. Should recover after full earnings are reported for the financial year, I'm not sure of the reporting date.

[doctorj]

Manging Director told Board Room Radio that people didn't have the cash for options lying around. Later on they underwrote them, seems that if they can excercise for 75c that the price will buffer down to ~80c until the cash has come in. That's my :2twocents worth. Should recover after full earnings are reported for the financial year, I'm not sure of the reporting date.
You've hit the nail on the head.

Tricom hold a large amount of stock and have also agreed to underwrite the offer. I don't have the article handy, but the story goes that tricom are doing what they can to drive the price down in order to maximise the number of options they underwrite.

[Col Lector]

FXROA - the listed options due to expire June 30th were SUSPENDED on Friday 22/6/07 at 6.40 pm. No reason has been provided by the ASX and no ann released so far. Any ideas??

[Col Lector]

FXROA - the listed options due to expire June 30th were SUSPENDED on Friday 22/6/07 at 6.40 pm. No reason has been provided by the ASX and no ann released so far. Any ideas??

Reason discovered....the v.fine print on options expiry notice...
"Last trading day of Options on ASX will be June 22".

[doogie_goes_off]

"Identifies new iron ore prospect"

I like the look of the magnetics image, it is compelling when comparing to Cape Lambert's anomalies. Good to see the share price climbing above $1. It's hold hold hold for me!

[redandgreen]

Looks good to me too.

Nice to see it gets a mention in the SMH and Age investor section........

Looking good from the chartists point of view

I think they are reporting on the 28th July

[doogie_goes_off]

I have started to crack a smile, despite unloading some to buy some other shares. Nearly 10% rise on average volumes for the week which are better than recently. Looking for a nice profit for the half:):):):):)

[doctorj]

A nice recovery for FXR shareholders. Have any of the long termers considered how FXR might fund further exploration (drilling) and ultimately development of this iron ore? There gear at Radio Hill is geared toward Copper/Nickel and is already suffering from capacity restraints.

Personally, I'd like to see them focus on one commodity for a while (hell, also focusing on one mine would be great too), get some money under their belt and then start to think about growth plans. Ultimately, a venture into Iron Ore will need to be by spin off or large capital raising. In my model I'm not attaching any value to the iron ore for this reason - I believe its great to get press/attention and not much else for the moment.

[profithunter]

FXR has just gone into a trading halt. I'm sure it wouldnt be a capital raising.

Either they are spinning off their Iron ore assets or Takeover? Thats my guess

[viccam]

Just noticed, i've been watching this one for a while. There in the thick of it up there, so i'm hoping its positive.

[profithunter]

MMX went into a trading halt at around the same time...could be a takeover on the cards. Any other theories out there??

[joeljp]

IMHO, it's gotta to do with Sinosteel taking a substantial stake (10%+) in the company. There is probably a lot of iron ore in the ground that the public knows.

DYOR :)

[doogie_goes_off]

I once knew a place where you could find the reporting dates, but I have a feeling that they are due for full year reporting and believe there will be a better than last half profit for this half based on export numbers for copper and nickel, I did some calcs that came in around 3.5 cents per share plus the 1.5 already announced last half but that was based on nickel price then and 3 good months production with costs 1/2 of metal output and I'm not sure what ther operating costs are so really I'm just crossing my fingers. A takeover would be OK although a little dissapointing because they obviously have the talent to find deposits. If the iron ore gets spun out I would buy in as it looks promising. Do MMX have iron ore projects? - ill look up their thread. I am hoping for a good news day tomorrow because I still hold (with an iron fist). Go Fox!

[doogie_goes_off]

I also do not think it can be capital raising as they banked $17M from option exercise the other week so it would defy logic IMO

[doctorj]

http://www.asx.com.au/research/pdf/company_reporting_dates_2007.pdf

Fox is most likely to lodge their accounts late on deadline day.

[doogie_goes_off]

Thanks Doctor J, Ididn't have this info, so who knows what I was thinking, thanks for the post and lets hope the announcement is something good. I am slowly realising I am an poorly informed investor, but I know some basics and this forum teaches me something new every day.

[doogie_goes_off]

Well their announcement is a new discovery south east of the operating Radio Hill Nickel mine. A wide intersection of sulphide bearing rock with a narrow high grade zone. Hard to say what's happening without assays, but atleast it's some action near their current operation and that can only be good news. Another gutsy exploration success. I like the way they operate, this is why I hold and have a long position with fox. I'm very keen to see their financials because I think this will develop some much needed interest if the SP is to clim to it's highs again.

[mexican]

Well their announcement is a new discovery south east of the operating Radio Hill Nickel mine. A wide intersection of sulphide bearing rock with a narrow high grade zone. Hard to say what's happening without assays, but atleast it's some action near their current operation and that can only be good news. Another gutsy exploration success. I like the way they operate, this is why I hold and have a long position with fox. I'm very keen to see their financials because I think this will develop some much needed interest if the SP is to clim to it's highs again.

Looking like the mine life will extend with more results like this and more on the way. Working very hard to get results and getting them.
Like to see drill samples from debeers land, when on hand.:)

[Ken]

A lot of good news coming from Fox Resources.

At the moment, I am a little bit bullish on FXR. The run up to $1.25 on volume a month or to a go, could be a sign the breaks are being put on the falling share price.

We need a really big day to turn FXR around, with the amount of positive news coming in at the moment, it is possible.

$10.5 million worth of nickel sent to china.

Does anyone know the mine life or in ground value?

Any estimated PE ratio, or are they still a cash burning company?

[doogie_goes_off]

Hi Ken, I have been a little dissapointed with the financials, still burning more than they make, but that gives them the opportunity to grow eg: drilling at bertram could be the next cash cow. Basically the mine is lowish grade, however their production is getting more effiicient all the time. Not sure of reserves/resources, haven't looked for a while but good chance of an extended mine life with more drilling to infill stepped out holes and with operations continuing to go strong, the cost to get at any new resource is small. I've been bullish on their exploration philosophy but the mine is starting to turn a good dollar. Only time will tell.

[doogie_goes_off]

Can anyone understand why a nickel miner would go down on a day like today when nickel re-entered the stratosphere? I am sorely tempted to top up again.

[Ken]

I would like some leverage with FXR.

BT aren't lending against it.

Which is interesting considering they lend against RAMS homeloans and AGM nickel, and CBH.

[doctorj]

Can anyone understand why a nickel miner would go down on a day like today when nickel re-entered the stratosphere? I am sorely tempted to top up again.
I don't think Fox is a Nickel play anymore.

I've been pretty critical of Fox in the past. They had been changing commodity every 2 mins, reconfiguring their production facilities, spending money on things and then not progressing with their development. They've given me plenty to be critical of in the past.

I think this has gone a way to changing now, which brings me back to my first comment. I don't think it's a Nickel play anymore. For me, I think they're going to keep things going selling Cu/Ni/Zn whatever, but as a means of keeping up revenue to keep shareholders happy and FUND EXPLORATION. I believe their main game from here on in will be Mt Oscar and doing enough exploration on it to attract a jv partner or to get it to a point where they can spin it off and extract sufficient value.

They have established relationships with the likes of Sinosteel, which may just be who they're trying to tempt into a JV. Whether or not this is likely to happen will depend on how big the deposit is likely to be. For the first time in a long while, Fox has me raising an eyebrow, but not because of Nickel prices.

[doogie_goes_off]

Yep doctorj that's all fair enough, I'd like to see some premium for production when the metal prices go up though. I suppose I'll just have to be more patient and accumulate if funds allow.

[barney]

Interesting goings on with Fox this arvo ............. 490,000 shares went through with one buyer just after 3pm (on market trade) ............. pushed the price up about 9% in one hit ............ Next few days could be revealing Cheers.

[doogie_goes_off]

Anyone watch the run of trades after this, skyrocketed ~20%. That's more like the action I expect - is something brewing?

[It's Snake Pliskin]

Anyone watch the run of trades after this, skyrocketed ~20%. That's more like the action I expect - is something brewing?

I was preparing to buy at around .97 and it took off in the time I did some calcualtions. I missed it.

[viccam]

Very impressive move, I'd like to see this keep up........... I wish.
Does anyone know who the big buyer was ? Things have been a bit light on from Fox of late so I hope the information stream starts. With all we know about them, there's to much happening without disclosing.

[benwex]

I have just recently started to follow this small Nickel/Copper miner...

I found an interview with the MD on board room radio and it quite a good listen..

http://www.brr.com.au/company.php?oe=english&type=search&searchPage=%2Findex.php&searchtype=asx&q=fxr&qindustry=

cheers,

Benwex

[barney]

Upgrade from FXR today. A few punters "selling the fact" after the strong rise recently, but the company appears to be on the right track. Cheers.

[barney]

Could be wrong here, but there has been some subtle buying on FXR over the last few days as the sp consolidates after its last run up ............ There are still sellers kicking in, but everytime the sp looks like taking a bit of a plunge, there seems to be what is hopefully "smart money" getting on board ........... Will be interesting to see where the sp is in a couple of weeks .......... Only a gut feel so my opinion is probably worthless...... Cheers.

[doogie_goes_off]

Glad you're still positive Barney, still waiting for my "smart money" to creep upwards of $1 again. Anyhow I have a long term positive outlook - it's a keeper. It funds it's own exploration pretty well and they have some tried and true methods of finding new goodies and some good spec positions eg: Mt Oscar and the DeBeers land.:)

[barney]

Glad you're still positive Barney, still waiting for my "smart money" to creep upwards of $1 again. Anyhow I have a long term positive outlook - it's a keeper. It funds it's own exploration pretty well and they have some tried and true methods of finding new goodies and some good spec positions eg: Mt Oscar and the DeBeers land.:)


Hi there Doogs, Yeah I'm in debit on FXR atm like a few others, but the price action today particularly, was encouraging. Maybe I'm seeing things that aren't happening, but I'm pretty sure there is a little "bubbling" going on under the surface with this one. I think once the last of the current sellers from the last run up are out, we might see a bit of a positive move upwards. Time will tell. Cheers.

[barney]

Could be wrong here, but there has been some subtle buying on FXR over the last few days as the sp consolidates after its last run up ............ There are still sellers kicking in, but everytime the sp looks like taking a bit of a plunge, there seems to be what is hopefully "smart money" getting on board ........... Will be interesting to see where the sp is in a couple of weeks .......... Only a gut feel so my opinion is probably worthless...... Cheers.


Occasionally I get to quote myself :D ..............

Some positive price action on Fox again today so far .............. Maybe my "gut" is improving ............ Up well over 5&#37; atm ............... Certainly appears many are interested in accumulating this one on the dips. Good company report yesterday .............. Quietly going on about their business .......... Agree with Doogs .... looks like a keeper. Cheers.

[doogie_goes_off]

Latest announcement provides more encouragement for locating material suitable to keep the radio hill operation running for a few years yet...

These highlights are backed up by some nice modeling, now lets hope we get some high grde intercepts!:)

HIGHLIGHTS
• SQUID Electromagnetic (EM) survey discovers three significant conductors at Ruth well 12km north of Radio Hill
• These conductors are supported by gossans with rock chip samples grading up to 13.5% copper along with moderate nickel anomalism
• Targets are near the existing Ruth Well komatiite hosted deposit where previous drilling had intersected grades of up to 15.9% nickel
• EM conductors are on granted tenements and diamond drilling is expected to commence in December 2007

[barney]

Still subtle accumulation by what looks like a handful of punters .......... But the supply keeps topping them up ........... I'm a suspicious bugga, but if this doesn't take a little run within a few days to a week or two I'll be very surprised. Just waiting for the last of the supply to dry up. Then again I could be totally wrong

[barney]

This may be of some interest to any FXR holders who haven't seen it yet ..... The results have been out from Fox for a while, but the involvement of a "new" player in Apollo Minerals (AON) may add some weight to the value of Fox's tenements ........

AON only been listed for a couple of weeks .... SP up over 20% after news below on there involvement in tenement/s involving and or adjacent to FXR in the Pilbara/Mt Oscar region .............. I'm not sure of the full significance of this at this stage, but if the accumulation I think I've been seeing is for real, we may see a bit of positive direction on Fox's SP ........ I for one would not be complaining about that :rolleyes: ....... Next few weeks should give us the story one way or the other I guess.


ASX Release
16 November 2007
Apollo to acquire 80% stake in new West Australian iron ore project
Key points:
• Apollo Minerals enters option agreement to acquire 80% interest in a recently
discovered iron ore project in the Pilbara region of Western Australia.
• Initial results at Mt Oscar Iron Ore Project (being adjoining E47/1217 held by
Fox Resources Limited) show up to 46% iron (Fe) at surface
• The Apollo Iron Project Area (being ELA 47/1378 and ELA 47/1379) lies 25km
south of Cape Lambert magnetite project presently being developed by Cape
Lambert Iron Ore Limited (Current resource of 977 million tonnes @ 32.4% Fe)
and is adjacent to Fox Resources Limited’s recent iron ore discovery, the Mt
Oscar Iron Ore Project .
• The Mount Oscar Iron Ore Project straddles both the Apollo Iron Project Area
and Fox Resources tenement
• Significant historical iron ore results contained on Apollo Iron Project Area
Newly listed Australian resources company Apollo Minerals Ltd (ASX code: AON) (“Apollo”) has
reached agreement to acquire an 80 per cent interest, under an Option Agreement, in two
exploration licence applications covering an area of approximately 212 square kilometers (ELA
47/1378 and ELA 47/1379) (“Apollo Iron Project Area”) located in the Pilbara region of Western
Australia (refer attached map).
On 2 July 2007, ASX listed Fox Resources Ltd (ASX Code: FXR) announced to the ASX the
discovery of a new iron ore prospect, the Mt Oscar Iron Ore Project (Exploration Licence
Application 47/1217). The geology comprises partially outcropping Banded Iron Formation (BIF)
over an area of approximately 5km by 2km. The BIF outcrop is coincident with a regional
strong magnetic high. On 9 August 2007, Fox Resources advised the ASX that rock chip
sampling confirmed surface iron ore enrichment in excess of 40% iron.
ABN 96 125 222 924
Registered Office
34 Parliament Place
WEST PERTH WA 6005
Telephone: +618 9488 5266
Facsimile: +618 9321 6699
Email: info@apollominerals.com.au
This highly magnetic unit straddles both the Fox Resources tenement and the Apollo Iron Project
Area. The Apollo Iron Project Area lies 32 kilometres east of Fox's Radio Hill nickel-copper mine
and 25km south of Cape Lambert's iron ore project. Cape Lambert is targeting a 1 billion tonne
plus magnetite project and is currently completing a feasibility study. The Central Target Area
recently delivered a total resource estimate of 977 million tonnes at 32.4% Fe.
Apollo’s Iron Project Area is believed to host the same potential iron ore unit as found at Cape
Lambert. Iron ore assays from samples taken over Fox Resources and Apollo’s ground have been
recently released by Fox Resources to the ASX on 9 August 2007 (see table 1).
On 17 October 2007, Fox Resources announced to the ASX after its initial assessment of
exploration results at the Mt Oscar Iron Ore Project that:
“These early exceptionally high magnetic results confirm the potential for a significant
magnetic iron ore unit to exist.”
The Mt Oscar Iron Ore Project as reported by Fox Resources to the ASX includes the following
significant results:
• “The area of interest is partially outcropping banded iron formation which is 5km long
and 2km wide and is coincident with a regional magnetic high
• Initial aeromagnetic modeling for the main anomalies have suggested the presence of a
folded sequence and believe two strong and broad magnetic units 400-600 metres thick are
related by folding within a synclinal structure. The modelled magnetic characteristics are
very high and support the presence of potential magnetite development below surface.
• Mt Oscar has been subject to exploration in the past which started in the 1960s and the
latest work was completed by KKR Resources in 1994. KKR's work included mapping,
airborne magnetics and rock chip sampling.
• Independent assays by Fox confirm surface iron enrichment in excess of 40% Fe on the
prospect. A review of work by KKR Resources undertaken in 1994 included rock chip
sampling and also showed results averaging above 40% iron(see table 1)
• Higher grade iron enrichment are below the surface as indicated by the recent geophysics
interpretation
• Fox to conduct further surveys to delineate potential areas of hematite iron or direct
shipping grade iron ore.”

[doogie_goes_off]

It's nice to see the company secretary acquiring some shares on market, it just highlights that they are cheap and that management have confidence in a positive outlook.

[doogie_goes_off]

Heaps of small trades rushed through at a low price towards the end of trade, not great news for holders such as myself. I have to wonder if someone is quietly dumping with very little positive buying activity around. I have to admit that I was moderately concerned that in the last announcement they mentioned the last two holes are going to be followed up by downhole electromagnetics, this sound like they missed their targets. Plenty more targets yet though!

[benwex]

Hey people there is a trading halt on this today...


Has anyone seen any other company who have as well?? possible M and A activity???

Benwex

[benwex]

CHINA’S LARGEST NICKEL PRODUCER JINCHUAN,
TAKES 11% EQUITY STAKE IN FOX RESOURCES
Pilbara nickel explorer and producer, Fox Resources Limited (Fox) (ASX: FXR) is pleased to
announce today that China’s largest nickel producer, Jinchuan Group Limited (Jinchuan), has entered
into a strategic agreement to take an equity stake in the Company.
Under the agreement, Jinchuan will subscribe for 18,800,000 fully paid ordinary shares in Fox at a
premium issue price of A$0.95. As a result, Jinchuan will own 11% of the issued shares in Fox.
Jinchuan will be issued a further 8,000,000 attaching options exerciseable at A$1.20 expiring
12 months after the issue of the 18,800,000 fully paid ordinary shares.
The funds raised from the issue will be applied to development of the Company’s nickel projects,
process improvements to the Radio Hill mill and the acceleration of nickel exploration on the 3,000km2
of tenements accessible to Fox.
On finalisation of the initial share issue, a Jinchuan representative will be invited to join the Board of
Fox Resources Limited.
Fox Resources Chairman, Mr Terry Streeter, said the subscription of shares at a premium is a major
endorsement of Fox’s prospective land holdings and operations in the Pilbara.
“We have been supplying Jinchuan for over three years with nickel and copper from our Pilbara
operations and believe this expanded relationship is a great win not only for our two companies, but
our collective shareholders,” he said.
“We welcome Jinchuan as the most appropriate alliance to maximise shareholder value,” said Mr
Streeter.
”Fox has the potential to become a long–term, quality supplier of nickel and copper concentrates and
we are delighted to have Jinchuan as a significant shareholder.”
The Agreement is subject to and conditional upon statutory approvals by the Provincial Government of
Gansu Province and the Central Government of the People’s Republic of China.

thank god some good news...


benwex

[bigV]

Good news.......i cant help thinking that they have been playing with the sp to help the deal along................and the timing may come with further discovery results......soon

All good !!:rolleyes:

[stockwhizben]

yeah i caught the last bit on i think new business foxtel channel of a director from fox saying how good it is with the chinese coming on board and along the lines of how well fox will go esp next few months. of course all directors will talk up the company. unfortunately caught the tail end of interview.

[doogie_goes_off]

Summary of todays good news from reuters:

SYDNEY, Jan 14 (Reuters) - Jinchuan Group, China's biggest nickel refiner, has agreed to a new supply agreement with Australia's Fox Resources Ltd (FXR.AX: Quote, Profile, Research) less than a week after becoming the company's largest shareholder.

Jinchuan agreed last week to pay $15.5 million for 11 percent of Fox as it chases access to raw materials for its operations in China.

Fox is among a handful of outback miners seeking to cash in on strong demand for metals driven by China's industrial boom.

Under the latest pact with Fox, Jinchuan, which already buys all the ore the company currently yields from its Radio Hill mine in western Australia, will purchase the entire output of nickel and copper concentrate from Fox's proposed Sholl B2 prospect nearby, for processing into refined metal in China.

The agreement will help Fox begin development of the mine and avoid taking out metals hedges to obtain bank financing, Fox managing Director Don harper said.

Ore from the Scholl B2 lode contains about 32,000 tonnes of nickel and 37,000 tonnes of copper. Production was scheduled to start in the second half of this year, according to Fox.
SYDNEY, Jan 14 (Reuters) - Jinchuan Group, China's biggest nickel refiner, has agreed to a new supply agreement with Australia's Fox Resources Ltd (FXR.AX: Quote, Profile, Research) less than a week after becoming the company's largest shareholder.

Jinchuan agreed last week to pay $15.5 million for 11 percent of Fox as it chases access to raw materials for its operations in China.

Fox is among a handful of outback miners seeking to cash in on strong demand for metals driven by China's industrial boom.

Under the latest pact with Fox, Jinchuan, which already buys all the ore the company currently yields from its Radio Hill mine in western Australia, will purchase the entire output of nickel and copper concentrate from Fox's proposed Sholl B2 prospect nearby, for processing into refined metal in China.

The agreement will help Fox begin development of the mine and avoid taking out metals hedges to obtain bank financing, Fox managing Director Don harper said.

Ore from the Scholl B2 lode contains about 32,000 tonnes of nickel and 37,000 tonnes of copper. Production was scheduled to start in the second half of this year, according to Fox.
SYDNEY, Jan 14 (Reuters) - Jinchuan Group, China's biggest nickel refiner, has agreed to a new supply agreement with Australia's Fox Resources Ltd (FXR.AX: Quote, Profile, Research) less than a week after becoming the company's largest shareholder.

Jinchuan agreed last week to pay $15.5 million for 11 percent of Fox as it chases access to raw materials for its operations in China.

Fox is among a handful of outback miners seeking to cash in on strong demand for metals driven by China's industrial boom.

Under the latest pact with Fox, Jinchuan, which already buys all the ore the company currently yields from its Radio Hill mine in western Australia, will purchase the entire output of nickel and copper concentrate from Fox's proposed Sholl B2 prospect nearby, for processing into refined metal in China.

The agreement will help Fox begin development of the mine and avoid taking out metals hedges to obtain bank financing, Fox managing Director Don harper said.

Ore from the Scholl B2 lode contains about 32,000 tonnes of nickel and 37,000 tonnes of copper. Production was scheduled to start in the second half of this year, according to Fox.

[mexican]

Any opinions on why this stock is so volatile and when good announcements are released it just does not move?
I just keep scratching my head.

[exgeo]

I guess despite all the good exploration announcements, they never manage to turn a profit so that might put a lot of people off. If they can't make a quid in the boom times, what hope now metals prices are lower?

[doogie_goes_off]

It's really hard to turn a profit when wage cost is so high in the area they work, this being said, it has to be a matter of time, they just need both operations producing at once ie: Radio Hill/Elizabeth.

[mexican]

Mt.Oscar looking promising. We will have to wait and see in the next month or so. The tide might be finally turning.

[rhombus]

she's moving today alright.

JINCHUAN SECURES EQUITY STAKE IN FOX RESOURCES
Pilbara nickel explorer and producer, Fox Resources Limited (Fox) (ASX: FXR) is pleased to
announce that China’s largest nickel producer, Jinchuan Group Limited (Jinchuan), has today secured
plans to subscribe for 18,800,000 fully paid ordinary shares in Fox at a premium issue price of A$0.95,
for an equity stake in the Company of 11%.
Jinchuan has received statutory approvals from the Provincial Government of Gansu Province and the
Central Government of the People’s Republic of China to enter into a strategic agreement to take the
equity stake in Fox.
It is expected that the share issue and funds transfer will be completed within the next two weeks.
Jinchuan will be issued a further 8,000,000 attaching options exercisable at A$1.20 expiring
12 months after the issue of the 18,800,000 fully paid ordinary shares.
The funds raised from the issue will be applied to development of the Company’s nickel projects,
process improvements to the Radio Hill mill and the acceleration of nickel exploration on the 3,000km2
of tenements accessible to Fox.
On finalisation of the initial share issue, a Jinchuan representative will be invited to join Fox’s Board.

[stumo]

stupid question time... why is it @ $.95 issue price?

[doogie_goes_off]

Because someone finally realised the potential of FXR and now they have capital watch out Mr Market, Fox is on the run again.

[Jigalong]

What a classic. Everybody thought they had just placed a big parcel of shares, but it was only a confirmation that the previous placement they announced, had got the OK from the Chinese Govt.

I have never seen such a stupid run up in a share before, and I should have sold what I bought at .585. But as usual, I sat on my hands and now they are back to around what I bought them for.

I guess it was good publicity for FXR though, so not a complete waste of time.

Jigalong.

[doogie_goes_off]

Cash is in the bank and now they have new areas to develop - Bertram looks like the real deal (the new Radio Hill??)

[mexican]

A bit of interest in Fox in the last couple of days.
MMM....I wonder if the drillers have been talking at the local water hole about results from Mt.Oscar.
Results should be coming in soon! Look forward to it.

[56gsa]

A bit of interest in Fox in the last couple of days.
MMM....I wonder if the drillers have been talking at the local water hole about results from Mt.Oscar.
Results should be coming in soon! Look forward to it.

The magnetite seems to be very high content of silicon - i thought ideally this should be under 5% - but that may be after processing?

Nickel is still the potential earner in short-term...

FXR certainly seems to be exhibiting potential breakout - increasing volume and closed above downward trendline.

[doogie_goes_off]

Good volume and another rise today, expecting some indication of what's happening at Bertram, F-Zone and Mt Oscar later. Looking forward to a little end of month report on production maybe, just needs a trigger to break out.:2twocents

[Jigalong]

Mr Off ,
How about today - closed 1.105 and a high of 1.13 . Over 2.5m went through . I reckon they will get a speeding ticket soon .
Cheers ,
Jigalong

[doogie_goes_off]

Mt Oscar drilling: ~50.4m @ 60% black beds with ~65% Fe content looks like 50m @ 36-40% Iron to me, OK but not too impressive. Not DSO anyway. Probably a little dissapointing and share price has slipped.

[tnargak]

i agree Jigalong, it's gotta happen very soon!
certainly been some great interest in this stock of the last few days!

[doogie_goes_off]

Expecting to see resistance at around 0.68 without any new positive news. Could trend up if base metals rally or Fe grades better than predicted from Mt Oscar.

[alfaracing]

i don't believe Fox knows what's it's mining:confused:. They seem to be all over the place with their explorations. I'm not saying i know everything there is to know about the company and their decisions. I suppose their sp reflex the ASX. anyway i guess i'll hang on for a bit yet.

PS in the red big time with this one.:banghead:

[Trader Paul]

:)

Hi folks,

FXR ... has several significant and positive time cycles, due to come
into play soon, so we are expecting some very significant news/moves,
over the next couple of weeks ..... :)

16-17022009 ..... 4 x positive time cycles expected here

23022009 ..... a positive cycle to bring more good news

..... more later.

have a great day

paul

:)

=====

[Trader Paul]

:)

Hi folks,

FXR ... will be looking for 3 positive cycles to come into
play, in October 20009 ...

02-05102009 ..... positive spotlight on FXR

16102009 ..... positive news expected here

22102009 ..... positive move ... finance-related ... ???

have a great weekend

paul

:)

=====

[springhill]

FXR seem to have pulled one right out of their cake-hole today, announcing a potential JV with Breeton Pty Ltd for the Mt Oscar IO Project.
Breeton can earn a direct 60% interest with a $3m upfront payment and $20m more in staged payments.
Breeton have also subscribed for the shortfall in last quarters cap raising, totaling $5m @ 15cps. Quite incredible when Fox has been trading between 9-11c for weeks now. Also attached is a 30c option exercisable on or before 31 March 2011.
They must have supreme confidence in this! Astounding!

http://www.asx.com.au/asxpdf/20100825/pdf/31s2rzdn69t0zx.pdf

[barney]

FXR seem to have pulled one right out of their cake-hole today, announcing a potential JV with Breeton Pty Ltd for the Mt Oscar IO Project.
Breeton can earn a direct 60% interest with a $3m upfront payment and $20m more in staged payments.
Breeton have also subscribed for the shortfall in last quarters cap raising, totaling $5m @ 15cps. Quite incredible when Fox has been trading between 9-11c for weeks now. Also attached is a 30c option exercisable on or before 31 March 2011.
They must have supreme confidence in this! Astounding!

http://www.asx.com.au/asxpdf/20100825/pdf/31s2rzdn69t0zx.pdf


Long time between drinks for "Fox", but they finalised the deal today.

Effectively Breeton gain 60% of the Mt Oscar project for $3 million in cash + $5 million for share takeup at 15 cents + $20 million of exploration over the next 5 years.

Fox now have some additional capital to work with ..... considering their market cap is only about $35 million, and they still have some very interesting tenements, they look a low risk investment at these levels.

I dipped the toe in again today based on the above ..... happy to hold for a while based on the low risk fundamentals, and the long period of consolidation around the 10 cent price area ..... Lets see what the market thinks about it all.

[doogie_goes_off]

Barney, this is a good result to have someone else sole fund, particularly as the test Iron concentrate produced still has relatively high silica (>10%) and would attract penalties with most buyers. The rest of their tenements are prospective for base metal sulphides and gold, so hopefully there will be some news there later. Could be one for the back pocket again, but still sitting on the fence.

[barney]

hopefully there will be some news there later. Could be one for the back pocket again, but still sitting on the fence.

A bit more positive news with Fox today with their leaching process looking to generate some handy cash numbers. The market is not jumping for joy immediately, but after such a long time in the wilderness, Fox management need to re-establish their market credibility.

Still a bit of work to do re the financing etc, but the outlook is certainly more positive heading into this year. Looks fairly low risk at these SP levels .... probably just a bit of patience required now.