profit

So, the quarter is over and cash is negative - again.

Seems bad, well, think back - and then think of where they are now.

FY11 - last financial year

Cash was down $17M for the entire FY exc. the cap raising.

FY12 - the one just finished

Cash is down $11M, but, we drew $8M so lets call it down $19M.

To be honest, we are pretty much tracking how we did last financial year. The game however, changed massively for the company during this time. Here is the kicker.

FY11 Revenue was $102M which generated a profit of $7.6M at EPS of 0.25cps diluted. That gave a PE of about 28 based on the share price at that time.

FY12 Revenue is likely to be circa $231M, gross profit should be around $29M by my calculations, with EPS of approx 0.69cps and a PE of 5.

The FY12 figures are my estimates only. Happy for people to tell me I am way off the mark.

Please keep in mind that quarterlies are cash only. The company's overall profitability is a totally different story. In FY12, FML spent $60M on exploration and development, only a portion of which will be amortized in the FY12 profit and loss.

I am not trying to ramp here, I am just trying to show that I believe FML is actually going to show massive growth in both revenue and profitability in the annual report and that which exposes a very very low PE, approx 1/6th of what it was at the same time last year. I do think 5 is well below where it should be, but I also realise that significant investment has been required to generate this profit which in turn, will always put a dampener on any companies PE if evualated correctly.