Q: Could I have your opinion on FPX?
5i Research Answer:
FPX has projects in BC and the Yukon. It has $30M cash, but no revenue, losses and negative cash flow. Shares are up 8% this year and down 21% over 52 weeks. Insiders own 14%. Its Klow property in BC has potential but it is still early days here. A recent scoping study noted a potential 20% return (IRR) over a 40-year operating life producing 32,000 tonnes per year of nickle. The IRR is a bit low considering capital cost expectations. In the developer category we would just give it an 'ok' rating. Risks are very high here and it will need more capital over time.