frustrated, page-19

Guys open to discussion-as im no expert
By swallowing up CRE and becoming the 4th largest producer would essentially mean that they obtain additional revenue based on achieving 230,000 ounces of anualised production


Lets assume we have an average price of $1700 ounce fro 12 months ahead- (a few are predicting that gold price will stay above $2000 for all of 2012 as the global financial crisis gets worse in US and Europe.)

If this is the case then FML has a great opportunity to make some serious money

230,000 x $1700 = 391,000,000 revenue

profit = $184,000,000 based on a cost of $900 per ounce AG

$184,000,000 divided by 5 billion shares = .037/eps x multiple of 10 = 37c market price for FML not bad at all

If we achieved targets 130,000 ounces without CRE this would equate to (based on above)$104,000,000 in profit gives us 0.034 EPS OR 34c/share if we divided by 3 billion shares as opposed to 5 billion

guess the obvious is that we make an additional profit of $80,000,000 (ie FML+CRE COMBINED = $184 million )

But the dilution with additional 2 billion shares dosent increase our EPS by much at all- lets hope it improves economies of scale by combining the two companies into one!
Any thoughts>??
MMM