where to with stone ?, page-12

Slura and oz herald,

If GS milling ceases in 10 months and FML allows CRE(laverton) to Collapse,then FML WILL GAIN FOUR VERY VALUEABLE THINGS,instead of the only slightly different four it would have got with a clean takeover(extra $200m tax loss)

1/A TAX LOSS of the value of shares they paid for 81.57% of CRE($50-60+ million)against current COOLGARDIE profits coming.BONUS-NOW

2/More importantly FML pick up CRE assets 100% as being the largest/only creditor with security over all plant and tenements,all prestripped and ready to go.

3/FML will be able to upgrade the CRE plant without the wasted last 12 months delay,with Coolgardie funds,whereas up to date,that has been via borrowing directly attributable to CRE and CRE hasn't generated sufficient to do so,itself,holding back potential production to date.

4/access to CRE generated cash from a rebuilt mill,for use elsewhere.

CRE minority holders get nearly NOTHING,except a capital loss on their share investment as well.

Then FML can,if it has the funds do up the mill with CRE assets costing around what's owed,being $13m or so,what the whole inactive tenement package would be worth,considering it has a DECOMMISSIONED MILL with NO CRUSHING CIRCUIT,definitely NOT CURRENTLY A VIABLE PLANT on care and maintenance e.g. Panoramic purchase not so long ago,site and plant incl 250 man camp($15m?)for comparison.

Essentially no change in situation except 100% control and only $50m tax loss to claim,instead of $250m and ability for FML to grab the cash generated.

Stone get zilch.Nothing,Nada,become laughing stock with great "LOSS OF FACE" amongst their peers for letting it happen,especially after so many opportunities to do a deal and exit respectably showing a profit if managed properly.

FML get to swop $50m script buy for 81.57% plus $13m loan
FOR $50M tax loss 100% plant and tenements - cost $13m owed.
Throw in another $20m and an active mill with a new crushing circuit and back to 200koz,no hassles + FML can spend the cash generated on old CRE tenements at The Mount/TI,whereas currently,any future cash would be locked within CRE and spent there.

DYOR+DYODD I know my preferred path 100% ownership and a kick in the goolies for CRE minorities.Business is economic WAR,after all.One should never enter a battle if all you have to fight with is chicken feed and your only tactical option is to throw Stones in the gears,in the hope of slowing down rather than winning against a better armed opponent.