1. No guarantee that capital raise will have a positive impact on the share price. Atleast 1 cent dividend to each share holder would have been appreciated.
MV- Well its either a short term dividend of which is really is of no benefit to any one, and the chinese would prefer to develop what FML have and hence the money proposed to put into FML. I beleive that ther Chinese would NOT agree to have their money that they are providing to FML (if it deal goes ahead), in paying divvys. Accelerating exploration,in further developing FML's areas, remember only 4% of FML's assests have been explored, Or buying out other opportunities, in which can provide GOLD ore now to feed FML's mills, and refurbished mill if we get the money.
2. No clear plan on how they plan to use the $ 237 million in say next 4-5 years time.
MV Well I believe FML they do have plans, it just that they have not been fully revealed as yet.I do not belive that the Chinese would put 225 Million into an emerging mining house that does not have future plans.
3. Management themselves are not buying substantial quantity of shares to bring confidence in the market. I think I would have more FML shares then they recently bought.
MV - have you really checked if thats the case, though it is a good thing for directors to have some shares in the Company, they are not obliged to.
4. Management should have made announcement about the possibility of deal with Shandong six months back when they initiated talks. As always no proper communication from BOD.
MV - Why bother, it would of only been an MOU at best if they announced anything as soon as they started talking However I believe that they done the right thing sat down and talked,over many months, thrrashed out issues, the Chinese would have done their Due Diligence, to the point that both parties are happy, and have presented this to the market to vote on.
5. The chairman's letter also mentions that they may use the fund to do further acquisitions which I presume would further dilute our position in FML.
MV - Well yes strenghten the Companies prospects and opportunitites if and when they arise.
6. Still no info on what's happening with Stone's holding in CRE.
MV - Whom cares about Stone, they are insignificant now.
7. How will they reduce the production cost and by how much for each of the four mines and in what time frame.
MV - They really done well in reducing costs with CRE assests and have made a profit, CRE was producing at around $1550, so costs down to $1250 - FML done well here IMO.
8. Is there a guarantee by BOD that the rate at which they have been burning the cash till date won't continue.
MV - Cost of doing business, not that they want expenditure to be that high, however costs are now reducing now, with major development works to their producing areas complete.
9. Six presentations done in last one year by Campbell from Broken Hill to New york, still no one is interested to put there money in FML. Does it mean Management is uanble to market the company properly???
MV - Well beleive it or not, Shangdong are willing to do it. Dont forget as already stated in the the chairmans letter that capital is tight around the world, so FML have done really well here.
10. No update on TI for more than six months. How long before they give any resource update on TI. What Dean Goodwin doing ???
MV - Well treasure Island is not really a priority, have other stuff to do, with limited money, but now may well be a priority if they get the money.
11. No info on what they plan to do with Nickel exploration and mining.
MV - Nickel prices being low, why would they, however it is still an assest they have for the future, when Nickel starts turning around.
FML Price at posting:
3.9¢ Sentiment: LT Buy Disclosure: Held
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