30 June 2017
Fox Marble Holdings plc
(“Fox Marble” or the “Company”)
Update and AGM Statement
Fox Marble, the AIM listed company focused on marble quarrying and finishing in Kosovo and the Balkans region is pleased to provide the market with an operational and financial update ahead of its Annual General Meeting being held this morning at 10 am at CMS’s offices at 78 Cannon St London EC4N 6AF.
• Following the Mahadev Marmo sale and purchase deed signed in February 2017 for an estimated $1.8 million per annum of block marble, Fox Marble has already completed shipments to Mahadev and we have received a purchase order for our third shipment of 1,000 tonnes.
• Agreement signed with Simsekler Mermer A.G. one of Turkey’s premier natural stone groups to supply a minimum of €0.4 million marble.
• Letter of intent received from RK Marble Pvt Ltd one of the largest marble companies in the world for 1,000 tonnes of block marble across our range.
• The Company has begun cutting blocks at the factory for the purpose of completing existing orders. The resin and polishing lines are being calibrated and are expected to be able to produce polished slabs in July 2017.
• We have been notified that one of the Pisani group companies, Pisani Holdings Ltd has appointed Deloitte as administrator as of last week. Pisani has acted as an agent for Fox Marble material. Fox Marble has removed all consignment stock and stock for which payment had not yet been received from Pisani storage. We are currently assessing the situation and the impact that this may have on the Company’s order book projects but are anticipating that Fox Marble materials will continue to be installed within the projects for which it has been specified. The group has net unprovided receivables due from Pisani PLC of €68k.
• As are result of potential project delays arising from the Pisani administration we have reduced our expected order book value for 2017 to €3.6 million
• Fox Marble has just completed the issue of a convertible loan note for the sum of £440,000 which terms are the same as the series 1 loan note issued at the time of IPO. The interest payable is the same at 8% and the note is due for conversion or repayment on 31st July 2019.
• Fox Marble also has put in a place a draw down facility of up to £1m to be called for at its discretion. This credit facility attracts an interest of 9% of sums drawn down.
• Our cash balance as at 28 June 2017 is €0.97 million.
• Following a copyright dispute over the rights to use the name “sivec” on 14 June 2017 the Intellectual Property and Enterprise Court held that the use of the name SIVEC by Fox Marble Holdings plc was an infringement of Mermeren Kombinat AD’s EU trade mark. A copy of the full judgement can be found at http://www.bailii.org/ew/cases/EWHC/IPEC/2017/1408.html.
Chris Gilbert, CEO, commented: “I am pleased to report on the significant progress Fox Marble has made as we continue to build ourselves into a cash generative, low capex, fully integrated production, processing and distribution company of pre-eminent quality marble.
“Following from the completion of our new processing factory in Kosovo, which is moving into production now and will allow the Company to process (cut and polish) its own marble blocks for direct sale, Fox Marble has entered into a number of sales agreements which sees the order book stand at a healthy €3.6 million.
“As we look ahead to H2 2017 we remain confident that a number of potential new offtake, distribution and sales agreements currently under discussion with customers across the UK, Europe, US and Asia, which the Company believes will positively impact Fox Marble's revenues in 2017. We look forward to keeping the market updated on our developments as the year progresses.”
For more information on Fox Marble please visit www.foxmarble.net or contact:
Fox Marble Holdings plc
Chris Gilbert, Chief Executive Officer
Tel: +44 (0) 20 7380 0999
Cairn Financial Advisers LLP (Nomad)
Brandon Hill Capital (Broker)
Tel: +44 (0) 20 3463 5000
Yellow Jersey PR
Tel: +44 (0) 77 4884 3871
Notes to Editors
Fox Marble Holdings Plc is an AIM quoted natural stone extraction Company operating in Kosovo and the Balkans region, with headquarters in the United Kingdom.
The Company has been granted mining licences in relation to six separate marble quarries and completed a maiden JORC resource indicating an in-situ valuation of approximately Euro 16.5 billion. Established in 2011, Fox Marble has access to over 300 million cubic metres of premium quality marble.
Fox Marble also has rights to extract marble from the Drini and Malesheva quarries, both in Kosovo and from the Prilep Quarry in Macedonia.