hartleys research, page-11

morning,

I am continually amazed at negative sentiment.

2 dogs together - that don't make money?

Well, it's easy to make money - especially for fml.

All we have to do is stop spending over $1m per month on exploration and stop expanding and bingo. Also we could stop spending on things like we are just purchasing - easy save roughly $70m - let someone else buy it - just think of all the dough we would have - to do??? what with.

How about this - fml is going places, they have a great track record and look very much like they can do the job with the new acquisition - assuming that is so (and we don't have any evidence to the contrary - in fact all evidence suggests that fml do what they say and do it far better than most) - then we can have a fair swag of confidence that within 12 to 24 months fml will be looking very strong on the balance sheet - and much bigger than it is now.

That is what running at higher cost per oz does for you - at this stage of it's life - it is good to expand and it is good to take some additional risk in this environment.

If per chance the projected cash balance for the year 13 is anywhere near correct - that is a dream for a company that is valued at what we are now.

Now I am not suggesting that the figures will be that - too many variables - some out of our control and some that will be in our control but aren't showing up yet (like wanting to mine an elephant at ti) - however, all that said - get a grip on what $140m cash can do for you -----

it could build you almost 2 mills without going into debt - or it could build you 1 mill and pay a 1 cent dividend and you would still have $20m in the bank
- now I don't think we would do either of those scenarios - but it is possible - and that doesn't include factors like a strong rise in pog.

Lets get a grip here - fml is strong - and crescent was weak - but combined with fml being the top dog ------ this deal is as far from 2 dogs as you can get.

Aside from the peanut gallery - every writer and analyst I have seen who has seriously looked at this deal has liked it - even some who at first were sus. on it - once they looked closely, they thought this is a good thing.

From my chair - this looks like a solid medium term investment - and when crescent is settled in then there are a few other dominos around that are going to be much easier to acquire because fml is just that much bigger - AND they will have the history of not only acquiring great tenements and keeping friends along the way - but whole companies who came over to fml in a friendly and profitable manner for all ---------- that history alone makes the future an exciting time - people like leaders and they especially like leaders who are honorable and honest ------ that's us.

Now, does that sound like a company that is going good places or does it sound like a dog??

Have a great day

Pinto