ann: fml to raise 227.5 mill via placement, page-48

Some thoughts..

1. If FML were on the verge of an impressive quarter or two with reduced cash costs, reduced capex, etc and finally making some $ - wouldn't they be self fund and also raise money through equity as required at a level higher than current share price? (5-10% raising for working capital at ~5-6c). Perhaps this move just reflects the fact they are further away from sustainable profit generation than we'd like to think..

2. Sure this cash injection will hurry along and perhaps produce some exploration results - but will it benefit both new holders and current holders/owners, or just the former?

3. My biggest concern - 51% stake. SG/China Inc will run this company with it's own stategic objectives in mind (fair enough - they will be majority owners). I own stock NOT because I just want to be part owner of a potential large cap company, but becuase I want to be a part owner of a company that makes profits AND then distributes them as dividends.. SG views may well reflect the views of the China Inc and be more interested in resource security, resource/asset accumulation, with profits/income only secondary (if at all).

4. Could SG taken 100% at 6-7c? Probably - but why do they need to? 51% is a controlling stake and they will call the shots. And I think they would've gotten FIRB approval - as western countries seem to be dangerously underestimating the importance of gold as a bargaining chip in negogiating the new financial world order that replaces USD hegemony.

Time will tell..

If (1) above is correct then FML prob doesn't have a lot of room to move - a 3c cap raising would not have gone down well. However if they are on the verge of producing sustainable profits - then I am not happy that this is the path they have taken.

I have been happy with management so far though - so I keenly await BRR broadcast

Good luck to all