fml needs consolidation asap, page-39

Hi Pinto,

I'm pretty much of the same view regarding inflation figures being manipulated, and the great acquisition opportunities now presenting for miners with cash.

Like all holders, I would like to see the SP north of 5 cents asap, and tracking higher over time, but I held onto my FML stake, and recently added to it, because I believe that within 12 months it will be a much larger company than it is now, and will be producing significant quantities of gold at a reasonable profit.

I also believe that the Oz dollar will be below 90 cents, and possibly heading for about the 85 cent level, within a few months, which will substantially improve profits for gold producers currrently operating at a small loss or marginal profit.

We would probably all like an announcement asap about a substantial bargain-priced and profitable acquisition, to carry FML through until its existing assets become profitable to resume mining and processing. However, these things take time, and the last thing that we want them to do is to rush into an unwise transaction.

I've never been involved in the mining industry, but I've worked for one of the major international oil companies, and I know how complex and protracted acquisition negotiations can be.

With the prospect of falling labour costs and some other input costs, a lower Aussie dollar, and the prospect of a rise in the gold price as the paper gold shorters lose control of the market, I see a lot more upside potential than downside risk in the gold market over the next couple of years, and I suspect that the directors of FML will be working hard behind the scenes to deliver some good news in due course.

Cheers, Mike