treasure island update , page-16

@SS

So are we on?

You say they will lose cash this quarter and need to raise capital.

I say they will be cash positive this quarter and won't raise capital.

Fairly simple.

Either you stand by what you wrote or you don't. Which is it today?

I actually like that you call a spade a spade. Don't let me down now....

PS: I presume you are a master statistician as you seem to be able to use whichever data takes your fancy to make a point. Let's just be clear about the Cap Raising and Coolgardie Production. If you want to do a meaningful comparison, compare production from the quarter immediately preceding the cap raising to what it is now.

Cap Raising was done in April 2011. So lets look at Mar-11 quarter and compare to where we are now at Coolgardie.

Production up 18.8%. Head Grade up 12.6%. Gold recovery up 1.8%.

Clearly, there is nothing wrong with the increase in the production profile and head grades for the cash invested (not all of it went to Coolgardie as we now know).

Over the same period, Cash costs up 44.9%. AUD Gold Price up 17%.

So, we should be making an absolute killing right now, but the cash required to increase production, head grade, recovery and produce the gold is racing well ahead of the gold price and the increased output.

I have been in FML for quite a long time. For me, the defining time is Jun-12 and Sep-12 quarters. If they cannot be cash flow positive during both these quarters then I will have to move on. I am confident they can do this as cash costs are now at record highs and I am hoping that given the recent investment, development and some bad luck, they will drop dramatically over both these quarters. If I am wrong, then your cap raising will be a certainty.