Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

What next for Ferrex?

By Ben Turney

5 August 2014 12:49

More:

Last Wednesday, Ferrex (FRX), delivered for its shareholders some most unwelcome news, as it announced that Anglo American and Kumba Iron Ore had decided not to proceed with their proposed funding of the Mebaga Iron Ore Project, based in Gabon. Unsurprisingly the company’s share price fell c.40% in response, but it has since recovered from a low close of 1.025p to trade at 1.32p, last seen. This values the business at £12.3million and the question now is can the company shake off last week’s disappointment and demonstrate the value of its portfolio, which Managing Director Dave Reeves believes the market has largely missed?

Already a member? Sign in

• All premium articles

• Tom Winnifrith’s Bearcast

• Access to all the entire nearly 13 year archive

• ShareProphets Daily Newsletter

Cancel any time

This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

Comments

alcira16247

6 August 2014, 08:40

Ben

Many thanks for a well written concise article. I agree with your conclusions. Am hopeful that funding will be achievable, despite, as you point out, the depressed ore price. An resource hungry Indian or Chinese partner, would be good.

I will keep holding my shares as I admire Dave Reeves, he puts his money where his mouth is and I reckon he will pull the deal off.

Kind regards
Ben Turney

6 August 2014, 21:56

@alcira, thank you. If you’ve bought the story and back the company I can well understand why you hold and wish you luck.

I’m a bit more detached from this stock, but it is definitely on my watch list as a recovery play in the event of a sectoral pick up.

I agree about Dave Reeves. On the face of it, he looks like a CEO who deserves to pull off a good deal