thekiwi
05-07-2004, 10:01 AM
Felix Resources Limited is a 'new' company born in October 2003 from merging a 33-year old Australian publicly listed resource company (AuIron Energy Limited) with the privately held Yarrabee Coal Company Pty Ltd.
The Company's business is operation, acquisition and development of mineral resources projects for coal and other minerals. Competitive advantage comes from: the quality of the growth platform; internal drivers for growth; and capability/experience of board and management in the resources sector.
Felix has retained cash of 16 million Australian dollars; holds exploration tenements in Queensland, South Australia and Northern Ireland; and owns and operates the open-cut Yarrabee coal mine in Queensland. Yarrabee coal output has grown 20% each year since 1992, and will expand further to 1.7Mt/a by midyear. Current reserves are around 17.0 Mt. Yarrabee has a strong market position producing low volatile PCI coal for the steel industry - a strong growth market, and low volatile thermal coal - a niche market.
Its products are sold into Asia, Europe and the Americas. The Yarrabee operation is characterised by simple process design, low capital intensity and an innovative business model. The model has potential for replication across small to mid sized open-cut resource projects to liberate significant value. Coal is an attractive sector of the resource industry - strong demand, tightness of supply, healthy price rises and price outlook. Within this sector, low volatile PCI is an attractive segment with the current supply/demand gap being projected to increase over the next several years.
The market has limited awareness of Felix Resources Limited and for this reason Felix is undervalued compared to its peers of medium sized pure coal plays. This, coupled with its growth potential, suggests Felix warrants being on the radar screens of investors looking for growth opportunities.
The word "Felix" is a Latin word meaning fortunate. The term "Australian Felix" was the description given by the first explorers to their sighting of the rolling plains on the western fall of the Great Dividing Range. In this context it means "bountiful land"
The Company's business is operation, acquisition and development of mineral resources projects for coal and other minerals. Competitive advantage comes from: the quality of the growth platform; internal drivers for growth; and capability/experience of board and management in the resources sector.
Felix has retained cash of 16 million Australian dollars; holds exploration tenements in Queensland, South Australia and Northern Ireland; and owns and operates the open-cut Yarrabee coal mine in Queensland. Yarrabee coal output has grown 20% each year since 1992, and will expand further to 1.7Mt/a by midyear. Current reserves are around 17.0 Mt. Yarrabee has a strong market position producing low volatile PCI coal for the steel industry - a strong growth market, and low volatile thermal coal - a niche market.
Its products are sold into Asia, Europe and the Americas. The Yarrabee operation is characterised by simple process design, low capital intensity and an innovative business model. The model has potential for replication across small to mid sized open-cut resource projects to liberate significant value. Coal is an attractive sector of the resource industry - strong demand, tightness of supply, healthy price rises and price outlook. Within this sector, low volatile PCI is an attractive segment with the current supply/demand gap being projected to increase over the next several years.
The market has limited awareness of Felix Resources Limited and for this reason Felix is undervalued compared to its peers of medium sized pure coal plays. This, coupled with its growth potential, suggests Felix warrants being on the radar screens of investors looking for growth opportunities.
The word "Felix" is a Latin word meaning fortunate. The term "Australian Felix" was the description given by the first explorers to their sighting of the rolling plains on the western fall of the Great Dividing Range. In this context it means "bountiful land"