jv with qrl, page-27

Con80,

I agree with your assessement of the situation. Unfortunately the market for speculative companies is still very flat and perhaps negative with the imminent world end this Saturday. LOL. Unfortunately FNT's positive cash flows from the NCM JV are not a sure thing according to general markets this week.

I posted on East New Britain on the 7/10 and hinted to something going on with the Mc Neils with " It's an interesting strategy of the Mc Neils to take on a large stake in New Britain." When QRL announced the the new EL about a month ago and mentioned JV's will be considered, I thought the likely partner would be FNT due to the close proximety and the close relationship. One thing for certain, I'm sure that a JV with QRL will be very fair. Both companies work out of the same offices and both know each others work very well.

What did surprise me was the 10% stake in QRL. I'm personally not unhappy about that because I've very often thought about buying a stake in it because it has potential for a world class deposit as well. Now I have one but not directly. If QRL happen to drill the honey hole in for example into Mal, it could very easily have a market cap North of $100m, this would also have a huge impact on FNT's SP and get us well into the teens.

I do agree with some of the critisism thrown around this JV, but I do also believe Peter would not have gone into this JV lightly. His family went through a catastrophic week in 2008 when his father lost control on Macmin because of the markets and Peter himself lost out on Kodu. The Mc Neils went through hell quite recently. Peter's approach since has been to survive, gain assets and reduce risk so I think Peter's appraoch has been conservative compared to many MD's. I think Peter is quite certain about FNT's cash position in the future regarding NCM. The problem is NCM will not announce their position until they want to.

We just have to trust Peter that his recent actions and his reassurance that no capital raising is required in the near future. I will be severely disappointed if NCM don't come up with a substantial budget for Andewa and Schrader hence ensure a cash positive FNT.