eureka, page-44

Just catching up on posts, and there are some strange ones here. It was disappointing to see after thumbing up a couple of posts that gave information (links in this case which were helpful), they remained on zero, seemingly voted down only because of who they were, not the content of the post.

I am a subscriber of Eureka and other organisations that give a similar view on China's gold dilemma. US and Euro currency going down, gold goes up, but China needs a much greater holding of physical gold, but can not buy in such volumes without putting the price up. This means the price of gold will go up (long term minimum stable price now over $1650, and 2013-2015 forecast over $2200). Now if this case for the gold price going up is true, then surely it follows the recent gold company buy ins by Chinese companies with part government ownership, are in order to acquire tonnes of gold at below market prices? If they are buying on market then why own the company, if you pay market prices you do not need to secure a supply when the market is as big as gold?

As for the long term price for FML in these circumstances. With the recent increase in gold prices forecasts, FML as a high cost producer, gets a very significant increase net present value. Over the next 2-3 years developing and exploring this will go up, but FML has said they require all the cash, that is the cash from production is not sufficient to fund this development so we will not see it as a buyback or dividends in this period. If it is as successful as we expect, and if Shandong does not want to lock in the gold at an early stage for China reserves, but sells on market. Then Shandong can decide if they want to stay at half this unrealised value potential of FML, or to buy the whole company to get the whole apple for themselves.

If I was a Shandong shareholder I would demand them to take the whole apple. I remember similar sentiment here during the CRL takeover. I also remember the previous capital raising description of how much funds were required for development, and why.

As an exercise I looked for a single company where there was a majority stakeholder, where the share price had shown consistent increases above the market rates or paid a high dividend rate and found none. FML will be the first! Feel free to find other examples.

I was hoping for a bit more bounce, at the moment I am holding, waiting for a bit more gain (4.4c) and volume to sell, and or the prospect of a better offer coming in. I am concerned by the complete lack of volume on this bounce.

FML is the only gold stock I own that has not jumped 20%+ with the recent increases in gold long term price forecast, and yet it is the highest cost producer with the most leverage to gold price. The current gold bull market represents the most perfect conditions we could have imagined for FML in mid August when it began. I can not imagine anyone of you could be happy with the share price performance since then. Does anyone here not seriously believe that FML would now be well over 5c if it were not for this Shandong offer? Seriously?