cap raising, page-17

Hello bigprofits you have every right to raise this to seek more info. My discussion with management indicates they think they can trade more profitably and not have to resort to a capital raising.

Cuts costs, head down and mine the gold within a sustainable mine plan. The credit facility is there (proposed) in case of a fat tail event and prudent IMO - a just in case insurance.

I have no inside knowledge on anything - and read between the lines on what they say. I have reduced my holding, been out and back in, a bit muted in here the recent couple of months on operations (not TI) and raised my concern when I saw it. I have not exited from the funds as clients know however I did reduce the weightings to reflect the increased risk. Price has not collapsed this is trading within the long term pattern and has been in an uptrend since late 2008. However business is not always smooth and I am still there and believe that even with the increased risk, they will manage it appropriately, trade out the other side.

Remember many of the costs were expansionary and they can and obviously are pulling that back as they should. They produce gold and can vary expenditure to some degree within the mine plan. Less capex at Coolgardie now with three pits opened up. Back off on additional capex at The Mount and stick to the high grade areas at Laverton to get the head grade up and cost down. Ease up on exploration a little but replace the gold mined. The effect will not be instant but will certainly happen. Ore to pad at BGSM early to mitigate wet event potential - is a great strategy and worth the upfront spend.

It has been a really tough year for many investors and they are hurting. The sector (XGD) is down, some excellent progress in other companies has seen stellar SP performance and FML holders left wanting, with promises this year. Yes a bummer but as I said - IF they pull this off they will end up (when Au is way north of 2500 and operations sorted, elephants possibly unearthed etc) as an ASX top 200 company. They are already in the ASX 300 so not such a radical idea. I used the word IF and honestly believe they will get there. Please read the words I use carefully and get the inferences I choose them carefully to keep it real.

Thank you for raising the issue bigprofits - if there is a problem we want to hear about it so readers do what you will - but please don't shout down guys that raise such matters it could save you a great deal of money. Next subject anybody?

Regards,
CW
DYOR&DD