sep q oz's guessing comp, page-53

Mark thank you so much for taking the trouble to fish me out on the ozl board and ask me to comment on FML. But has HT1 has said its a dangerous thing to do on so many levels. IMO holders just don't really like non-holders commenting on their stock and I totally get in as well because you will always get people that all they interested in doing is stirring the pot and causing as much aggravation as they can.

Its hard for me as I don't know the company at all. I will do my best with the little I know. But will try to look into it further as more time goes by.

The first thing that stands out though is C1 costs are quite high at $944 per oz in the September quarter. I have always liked gold but at the level gold is now in the next year or so, really have no idea where the gold price may go. (I could guess I guess others here I'm sure would have a better understanding where golds price is heading I'm sure you know Dogboy1 most of his calls on golds price to me have been spot on, so he is your man to ask IMO) like all miners its better to focus on those with low costs.

The company is currently operating cash flow negative, which is a concern as their cash position has deteriorated alot over the last 3 quarters. To make matters worse they are taking over a company Cresent Gold Ltd that seems to have a propensity to burn cash as well. Since September 2010 CRE's revenue from the sale of Gold and Silver hasn't even covered the production costs of the mining operation.

One last point is that FML has 4.3 billion Ordinary shares on issue which is a bad sign IMO.

My comments probably seem harsh and as I said I don't know the company at all well, but it doesn't appear to be anywhere near investment grade to me. So a huge amount of care needs to be placed on the buying price if buyers "STILL" want into FML or are topping up.

Warning I have been wrong many times so Please take care all and I do wish you all nothing but the best in your investment and trading decisions.

Mx