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 11 am at CMS’s offices at 78 Cannon St London EC4N 6AF. Additionally, the Company provides an update to the announcement dated 4 April 2019 regarding the conditional acquisition of Green Power Sh.p.k ("Green Power") and Scope Sh.p.k. ("Scope").
Sales and Marketing update:
As previously announced on 17 June 2019, Fox Marble has received an order for 1,850 tons of Illirico Selene (the silver grey marble) from an existing customer. The order is notable because it consists not only of the higher quality large blocks of stone but also large quantities of small and semi blocks which constitute a lesser grade of block. This has the additional effect of clearing out old stock extracted some years ago and freeing up space in the quarry to further extend the quarrying area and reach additional resources of good quality stone.
On 5 June 2019, Fox Marble announced the confirmation of its biggest single order for its prized Alexandrian White marble. This order has been placed by the Swaminarayan Hindu religious order who are building a temple in Abu Dhabi on land donated by the Royal family of the UAE. Construction of this monument is due to commence shortly. Fox Marble will be providing bespoke, cut-to-size marble, varying in size from small blocks to large beams which will be shipped by the temple to India to first be hand carved and then shipped to the temple site. The schedule for the first of these shipments has been received. Fox Marble has received a minimum firm commitment for this material to be supplied during 2019 and 2020. The minimum value of this order will be $2.4m and Fox has received the first good faith deposit of $100,000 by way of confirmation.
Sales for the period to 30 May 2019 are €791k (2018: €413k) Production for the period to 30 May was 7,532 tonnes (2018: 4,079 tonnes).
The cash balance as at 26 June 2019 is €0.8 million.
Updated on on Acquisition of Green Power and Scope:
On 4 April 2019 the Company announced the conditional acquisitions of Green Power, the licence holder of the Maleshevë quarry, and Scope, a company through which Fox Marble has entered into two hire purchase agreements (the “Acquisitions”).
As previously stated, the Acquisitions are conditional, inter alia, on shareholders approving certain resolutions at the forthcoming Annual General Meeting (“AGM”) of the Company on 26 June 2019, relating to authorities to issue new ordinary shares in the Company (the “Resolutions”).
The Company announces that it has now received notification from the legal representatives of Green Power and Scope, challenging the enforceability of the acquisition agreements relating to the proposed Acquisitions.
The Company is seeking advice from its legal advisers in respect of these claims, which they believe to be wholly unfounded. An update will be made to the market in due course, and the Company will seek shareholder approval of the Resolutions at the forthcoming AGM.
On 11 June 2019 Fox Marble announced the appointment of Optiva Securities as Joint Broker to the Company with immediate effect.
Chris Gilbert, CEO, commented: “We have had a positive start for the year with sales developing well, and a number of major contracts being signed. We look forward to providing a half year update in July. A major focus for the year is to expand our sales base beyond our most popular materials, Illirico Selene and Alexandrian White, to encompass all the Fox products, and to further develop our market for material processed at our factory.”
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
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
Fiona Hadfield, Finance Director
Tel: +44 (0) 20 7380 0999
Brandon Hill Capital (Joint Broker)
Optiva Securities (Joint Broker)
Christian Dennis/Jeremy King
Tel: +44 (0) 20 3463 5000
Tel:+44 (0) 20 3137 1903
Cairn Financial Advisers LLP (Nomad)
Liam Murray / Sandy Jamieson
Tel: +44 (0) 20 7213 0880
Notes to Editors:
Fox Marble (AIM: FOX), is a marble production, processing and distribution company in Kosovo and the Balkans region.
Its marble products, which includes Illirico Bianco, Illirico Selene, Grigio Argento and are gaining traction globally both to international wholesale companies as well as being supplied directly into luxury residential properties. In the UK these include among others St George’s Homes and Capital and Counties Plc’s Lillie Square development. In Sydney, Australia Rosso Cait, Alexandrian White and Breccia Paradisea marble have been used in what is expected to be Australia’s most expensive residential property. These sales serve to demonstrate the desirability of Fox’s premium marble products as the stone of choice in some of the most prestigious and expensive residential developments around the world.
Fox Marble holds 40 year mining licences for six separate marble quarries with a maiden JORC resource indicating an in-situ valuation of approximately Euro 16.5 billion. Fox has taken three of the six sites into production (the Drini and Maleshevë quarries, both in Kosovo and from the Prilep Quarry in Macedonia) and continues to increase production. Notably, Fox has access to over 300 million cubic metres (over 1bn tons) of premium quality marble.
Marble demand continues to grow with stable pricing, predominantly driven by the construction and real-estate industries, on which Fox is looking to capitalise.