FEX - Fenix Resources

[System]

Emergent Resources Limited (EMG) is an iron ore, gold, uranium and base metals exploration company with the projects located in Western Australia. Before ASX listing the Company has negotiated a JV to earn up to 80% equity from De Grey Mining Ltd in the Beyondie project and an option to acquire base metal, gold and uranium granted exploration licences and applications from Pandell Pty Ltd and Oakover Gold Ltd.

http://www.emergentresources.com.au

 

[JimBob]

Here is some information on this company which i have been looking in to

Shares on Issue: 48,208,508
Options on Issue: 22,780,259 (20c strike price expire 30 Sep 2010)

Market Cap: $21million

Main Project:
Beyondie Iron Project
Exploration Target of 3.7-4.2billon tonnes at 27-28.5%Fe (Current JORC reserve of 561MT at 27.5%Fe)
70-120MT DSO Iron including a portion of 25-45MT at 55-60%Fe.

Emergent are expecting significant upside on these targets in both grade and tonnage.

The project is located adjacent to the Great Northern Highway and Goldfields Gas Pipeline in the northern part of WA’s mid-west iron ore precinct. Potential shared rail and port infrastructure developments for the project are in progress.

A 60 hole, 4000m drilling program is planned over 5.2km of strike with a follow up 10,000m over an extended strike of 12.6km.

A JV with Chinese company China Metallurgical Investment Group (CMIC) worth $200million is near finalisation.

Share Price chart attached. 12 month high $1.06 around the time the CMIC JV and initial magnetite exploration target was announced, 12 month low $0.325. There should be good upside to the current market cap if they confirm their DSO exploration target, although they state they are confident of exceeding the target.

 

[PinchOfSalt]

This stock is plumbing new lows due to the CMIC JV being cancelled and the options expiry. The options, EMGO, have ceased trading and will expire in a week on 30th Sept.

It's not entirely clear that the issue will be underwriten since "non-completion under the CMIC Agreement" was a termination event in the underwriting agreement. IMHO, Casimir, the underwriter probably have a way out that they will not exercise since they get fees, options and more shares at 20c. But if the SP does get below 20c, perhaps they would consider pulling the plug. I know of one case where Paterson did that.

BTW: was looking at their cash position. Here's a rough estimate for end of quarter (Sept 10) in $k
$879 Start of quarter
-$1,050 Operating costs for the qtr
$1,000 Options exercised so far
$1,000 5M shares for Casimir at 20c.
$3,544 Options to be exercised by Sept 30
------
$5,373

Number of shares after 100% option exercise.
(Shares and options in escrow were ignored in the previous post.)
85M (85,088,767)

So at current price (28c) mkt cap will be $24M. At 20c, mkt cap $17M

So plenty of upside, just compare the current price to the graph but note that there are more shares outstanding now and the project seems further from comercialisation now.

 

[springhill]

MC - $4m
SP - 2c
Shares - 207m
Options - NQ
Cash - $3.5m

An OK spec in regards to MC:Cash position, haven't looked at their projects that closely as there are not alot of plans for exploration this quarter, but Beyondie can get thrown in the trash I wouldn't wipe my backside with a magnetite project at the moment. With only an $80k spend on exploration I can't see where SP appreciation will come from this quarter.

Projects
Extension and Extension North Gold Project:
Extension to the Plutonic Well Greenstone Belt with previous drilling for Au
Beyondie Iron Project: (80% EMG, 20% DEG)
Established 561 Mt inferred magnetite resource with multiple potential iron products.
Glengarry Gold & Base Metal Project:
Comprising 2500 square kilometres of highly prospective ground for Cu, Pb, Zn, precious metals and uranium.
Marble Bar Copper, Gold Project:
Potential for gold and VMS deposits.
Paterson Uranium, Copper, Gold Project:
Potential for Kintyre, Maroochydore and Nifty style deposits.

AUSTRASIA INTERNATIONAL MINING LIMITED (AUSTRASIA) INITIAL PUBLIC OFFERING
• Due to the adverse conditions of the financial and capital markets, the Initial Public Offering (IPO) for Austrasia was withdrawn during the quarter. The Company is currently assessing the best way forward to advance Emergent’s base and precious metal tenements that were due to be transferred across to Austrasia as part of the IPO process.
CORPORATE
• At the end of the Quarter the Company announced a number of changes to the roles of the Emergent Board and management team. Mr Nathan Lude stepped down from the role of Managing Director to become a Non-Executive Director for the Company. The management of the Company will be the joint responsibility of the Board
ASSET REVIEW
• During the Quarter the Company reviewed a number of new projects located both locally and abroad for the company. The company is focused on reshaping it’s project portfolio to one with the potential to more effectively deliver near term value for shareholders.

 

[greggles]

Emergent Resources has taken off today. Up 112.50% so far to 1.7c.

Someone bought 45,394,609 EMG before the open for 1.5c a share, almost double yesterday's close of 0.8c. Taking such a large position at that price smells of a takeover. It certainly sparked some speculative buying today.

Anyone know more about this one?

 

[System]

On September 24th, 2018, Emergent Resources Limited (EMG) changed its name and ASX code to Fenix Resources Limited (FEX).

 

[greggles]

Fantastic high-grade iron ore intersections for Fenix Resources at its Iron Ridge Project have been announced today.

The news has set the FEX share price on fire. It soared 63.6% to close at 3.6c with an intraday high of 5.8c. The volume was huge with around 158 million shares being traded. Lots of profit taking but it was the buyers who were in the driver's seat today.

I really like the look of those assay results. Big, thick intersections with low
impurity levels. Diamond drilling results are currently pending with results from the metallurgical testwork to be available in February and a new Mineral Resource to be completed in March 2019. There will be quite a bit of news flow over the next few months and further good news will almost certainly see further share price gains.

 

[Miner]

Fantastic high-grade iron ore intersections for Fenix Resources at its Iron Ridge Project have been announced today.

View attachment 91605

The news has set the FEX share price on fire. It soared 63.6% to close at 3.6c with an intraday high of 5.8c. The volume was huge with around 158 million shares being traded. Lots of profit taking but it was the buyers who were in the driver's seat today.

I really like the look of those assay results. Big, thick intersections with low
impurity levels. Diamond drilling results are currently pending with results from the metallurgical testwork to be available in February and a new Mineral Resource to be completed in March 2019. There will be quite a bit of news flow over the next few months and further good news will almost certainly see further share price gains.

View attachment 91606

Good morning @greggles . That's a massive jump yesterday and you were right the buyers were lucky as it gone up 22%! Having in iron and steel industry for more than a decade, that grade of FE is one of the best I have ever seen
I am wondering if the ore body is haematite or magnetite. Need to do some research.
Do you also have any commentary with another FEL running by Mr Tony Sage of CFE fame(!) and his relatives with constant purchase but southwards direction of the stock price ?

 

[greggles]

Good morning @greggles . That's a massive jump yesterday and you were right the buyers were lucky as it gone up 22%! Having in iron and steel industry for more than a decade, that grade of FE is one of the best I have ever seen
I am wondering if the ore body is haematite or magnetite. Need to do some research.
Do you also have any commentary with another FEL running by Mr Tony Sage of CFE fame(!) and his relatives with constant purchase but southwards direction of the stock price ?

I'm not familiar with FEX management so I can't comment on that. I noticed the price action yesterday and took a look through the recent announcements. The grades and thick intersections are impressive and I suppose there are many out there buying today who suspect that what was announced yesterday might be the tip of the iceberg.

FEX has a market cap of less than $4 million. That's tiny. It's not hard for a $4 million company to move quickly on good drilling results. I'm going to look a little deeper into this one. It might just be a diamond in the rough.

 

[barney]

I'm not familiar with FEX management so I can't comment on that. I noticed the price action yesterday and took a look through the recent announcements. The grades and thick intersections are impressive and I suppose there are many out there buying today who suspect that what was announced yesterday might be the tip of the iceberg.

FEX has a market cap of less than $4 million. That's tiny. It's not hard for a $4 million company to move quickly on good drilling results. I'm going to look a little deeper into this one. It might just be a diamond in the rough.

FEX chart consolidating nicely last few days and looks very interesting to my old eyes Lets see how she opens tomorrow

 

[barney]

FEX chart consolidating nicely last few days and looks very interesting to my old eyes Lets see how she opens tomorrow

A couple of days later and it looks even better …… On the up

 

[barney]

Trading Halt pending more significant drill results …..

Shaping up nicely for holders (Don't hold unfortunately)

 

[greggles]

Trading Halt pending more significant drill results …..

Shaping up nicely for holders (Don't hold unfortunately)

I'm looking forward to the announcement barney. I'm not a holder, but I did pick it for the February stock tipping competition, so I'm hoping for a good result. I have a feeling it's probably going to be good news but we will all find out one way or the other very soon.

 

[barney]

I'm looking forward to the announcement barney. I'm not a holder, but I did pick it for the February stock tipping competition, so I'm hoping for a good result. I have a feeling it's probably going to be good news but we will all find out one way or the other very soon.

Probably take a bit of effort to get past that 150 million shares traded on 23rd Jan, so maybe a bit of trading around the 5+ cent region, but the signs look good for these guys into the future

 

[Miner]

I'm looking forward to the announcement barney. I'm not a holder, but I did pick it for the February stock tipping competition, so I'm hoping for a good result. I have a feeling it's probably going to be good news but we will all find out one way or the other very soon.

How do you do this scanning Greg ? There are thousands of stocks . Other than your sharp mind what else tools do you use ?
It is a great pick up. Watching and not holding however.

 

[barney]

How do you do this scanning Greg ? There are thousands of stocks . Other than your sharp mind what else tools do you use ?
It is a great pick up. Watching and not holding however.

Just back in to see it has been sold into after the open … nothing unusual, but the acid test will be how it trades around the lows of the last 5 day range (low 4 cent area)

Good looking chart for you to adjudicate on over the next few days or so @tech/a …. time permitting of course

 

[Miner]

Just back in to see it has been sold into after the open … nothing unusual, but the acid test will be how it trades around the lows of the last 5 day range (low 4 cent area)

Good looking chart for you to adjudicate on over the next few days or so @tech/a …. time permitting of course

Thanks Barney

 

[greggles]

I'm a little surprised by the market's reaction to yesterday's announcement. It looked good to me but I suppose it could have been better.

Still, more new flow on the way with an Updated Mineral Resources Estimate coming up soon. Profit taking is to be expected after a good run. Will watch for it to consolidate at current levels.

 

[greggles]

How do you do this scanning Greg ? There are thousands of stocks . Other than your sharp mind what else tools do you use ?
It is a great pick up. Watching and not holding however.

Miner, I just track volume and % price increase to watch for movers with lots of commitment behind the move. Those two variables alone bring up a lot of potential trading opportunities.

 

[barney]

I'm a little surprised by the market's reaction to yesterday's announcement.

Profit taking is to be expected after a good run.

Agree 100% Greg

Thanks Barney

Cheers Miner .... Just bouncing off @greggles initial heads up so all credit to him ……

I still think this has another short term run in it based off the results/charts …. and if it pans out the way it looks, I see a solid medium term future ….. all just my opinion of course so a few grains of salt should be sprinkled on the above