more from agm

I did attend the AGM and have just watched the online video, and have a few thoughts to share. On what Don Taig said about line of credit. I think this management group is savvy for organising the line of credit as a back up. The financial global situation is not flash as we all know, so having this credit line in place pre-negotiated is smart. If an emergency draw down is needed (and I stress if) then it's on hand quickly and at a set rate. Think about this: Since the AGM the global banksters have already gone toward the next step of print to infinity; who knows how available and on what terms a line of credit will be in 6 months time. This was a smart and anticipatory business decision in my view. Lets hope we don't need the facility but hey, if we do, we do, but it's done and done quick within known figures. Many companies may struggle to get credit soon; it's important we reflect on how the financial system locked up in 2008, no one trusted anyone, lending stopped, confidence was virtually nil. So no surprises here for shareholders in the future; but remember there are many macro-economic factors that the business has no control over e.g., weather, PM price suppression, PM SP shorting, mining tax, the list go's on.

The next 12 months are going to be about consolidating the business and getting some results for shareholders, that much is clear. As DT stated ...he was disappointed with the first strike action but it's obvious shareholders were not happy with potential remuneration increases until they see some positive action in the share price. I like this management team a lot and what they have achieved is outstanding in the 4 years I have been involved as a shareholder. I do however see why shareholders have concerns on returns and I think the vote was a statement from them. At last years AGM there was some concerns from holders stating the company might be stretching itself a bit thin on the ground resource wise. Well 12 months on we now have carried out a takeover and stretched it even more. From memory there was no mention of acquisitions at the 2010 AGM, but I will say, if the price paid for the Laverton projects was as good as stated from management then maybe it was the right way to go. You heard DT state at first he wasn't in support and just wanted to pursue organic growth, but in the end they couldn't resist a bargain. I'll give this management team one thing; they definitely aren't lazy and have an obvious passion/knowledge for the business and a pretty good work ethic to boot. If things roll they way they have stated then they will have my support next year regarding remuneration, no issues there. But remember we are going to need a little luck to go with the passion.

If the gold price maintains AU$2000 next year then a re- rate for FML is on the cards. Either we go up or companies like SLR come down, it cannot happen any other way.

And a very big thumbs up for Dean Goodwin, well presented Dean at the AGM, perhaps you and Chuck could join forces at next years meeting to level the playing field even more for potential and existing shareholders. The inclusion of the aeromags was important even though they could be seen as potentially commercially sensitive I think the average holder needed to get a sense of where the company was coming from in pursuing the elephant. One thing that slipped me at the AGM but I picked up on watching the TI video was the RAB numbers that have shown hits (the yellow holes) are over 1.2km's in distance already. The fact that they are on the structure to the right of the island is an absolute bonus.

Ok enough already....good luck to all holders