Share Talk spoke with Chris Gilbert, Fox Marble’s CEO on 13th October 2016 about the company announcement of the landmark venture formed in cooperation with the Government of Kosovo
We also put some shareholders questions to the CEO and now he has kindly replied to the follow up Q&A
Chris Gilbert, Fox Marble’s CEO answered shareholders questions
Why did Fox enter into an agreement with a company (Eboracum) whose sole director was a former bar manager whose previous company failed in IMHO very suspicious circumstances, where the liquidator is still chasing said director regarding at least three amount of missing monies and overall debts of circa 700k. If the HNWIs behind Eboracum are good for their money, why did they enter into a deal with Scott Oldfield?
Eboracum Marble Ltd. has paid a deposit of 20% of its order of some EU390K, which has been received by Fox Marble. We have also been made aware of some of its customers, including Renaker Build Ltd of Manchester, from whom Fox Marble has received a letter directly confirming its status as the preferred supplier of natural stone for its various residential developments.
Is he aware of that the lengthy delays getting FOX into profitable production are seriously undermining investor confidence in FOX and its ability to deliver, and could therefore jeopardize the Stone Alliance project?
We take seriously the disappointing results to date compared with the expectations set at the commencement of operations once Fox Marble was listed, however the underlying business model and strategy has not changed and the opportunities remain as compelling as they always have been. The company has accomplished a great deal in a relatively short space of time and its material has been extracted, processed and installed in some of the toughest markets in the world in very prestigious developments including London New York Sydney and Beijing. We expect to build on these successes, especially as some of our newer material is attracting very positive responses.
Why did Fox enter into an agreement with Banyan formed literally a few days before the agreement? Was Chris aware of the people behind Banyan? Who are they? Why are they (Banyan) so secretive so as no have no website, email address, physical address, or even a named executive director?
Banyan Stone was formed specifically to trade material it purchases from Fox Marble and as a start-up was required to pay a deposit to Fox Marble which was received. The Company is aware of the Principal of the company and his activities in various regions where he is actively selling our stone.
Why have Zhong, Banyan and Eboracum all failed in the order targets released by RNS by Fox, by I would estimate at least 1m EUR or about 70% plus of the order announced by RNS each? The Banyan order for example should have been complete by now. If this Fox being unable to deliver or the companies not fulfilling their order.
There are various reasons why the delays have occurred all of which have not been a result of by Fox Marble being unable to extract and supply the material.
What due diligence did Chris take on these companies recently formed with multimillion EUR orders, that they had enough existing business and strong enough balance sheets to get these orders filled?
With respect to the start-up companies that indicated their demand to take material from Fox Marble, significant deposits have been paid to Fox Marble indicating their financial strength and ability to trade with our material.
With respect to the agreement with the company in China, l have visited their warehouses and factories, they have visited the quarries in Kosovo and Macedonia and purchased sample blocks to process the stone in China. The next step would be for them to return to the quarries to select the quantities of blocks they would need to purchase in order to retain their agreement with Fox Marble.
What are the production targets for the factory and what is the anticipated impact on Sales?
The production capability, for the soon to be completed factory, far exceeds the quantity of material required to fulfill the company’s internal sales targets.