My rational for staying in, Assuming mgmt is honest and based on every public avalible data on fml, what is the max down side from here......and what could be the upside?
FY11 projection/forecast ----------------------- PROD: 100koz CASH COST/OZ: 750 TOTAL COST/OZ: cc + 200 = 950/oz gold price assumption: 1300aud total profit: (1300-950)*100k = 35mn
FY12 projection/forecast ----------------------- PROD: 130koz CASH COST/OZ: 700 TOTAL COST/OZ: cc + 200 = 900/oz gold price assumption: 1300aud total profit: (1300-900)*130k = 52mn
We need to ask, is this is exagerration or achievable?
Now I understand Investment funds will not value a company on asset value or P: E when the production is not backed by Reserves for at least 3/4 years, but FML are doing just that, they have already increased thier reserves upto 207k and resource to 2mn, they have a high exploration budget for FY11, quite a few no of drills etc.
One would not to buy when the funds were buying which would be too late.
FML Price at posting:
3.8¢ Sentiment: None Disclosure: Held
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