ann: fml to raise 227.5 mill via placement, page-188

1..."Is there any chance of getting a cash divvy while this money exists? I believe not."

SD just put in a pile of cash, and paying out divvies, of course equitably to all, would only be giving back to themselves. Therefore until the 227 is spent, no divvies. I thought is was a simple concept.

Therefore the bext question, how long before the 227 is spent, because that is the earliest divvies can start.

2....The other issue is that I believe all serious investors want dividend returns so why would SGG not want dividends that does not make commercial sense to me.

I'd agree with serious investors want a return. Seems you believe only divvies are available to SD.


3...Hedging. SD can arrange finance for M&A and as 51% hedge gold production against the loan. What terms? Open for setting for example $1800, in a market heading north of $2000. Again, seemed an obvious legal strategy. I amnot suggesting SD will do anything illegal. They don't have to, just use available strategies.

4...Gold in the ground. Another simple idea. Either buy mined gold or gold to be mined. A known resource for the right price (how does 5c and 51% sound?) suits the bill if your objective is to ensure the broader freely traded gold market is driven up by your own demand. The aim therefore is to get to the head of the queue to put your foot on it before others can access it, to meet uyour own Centrally Planned and mandated goal to become a reserve currency.

5...Tell the readers please to back up this statement it seems pretty wild to me.

I am trying. Some seem to get it.

6...I thought I was offering analysis on how we can all benefit via the use of the money - you know for the shareholders on a commercial basis - turning mineral deposits into money.

Can't argue with that. Thats what you do, sort off. You provide good insight into identifying resource, mining issues and likelihoods of achieving low cash costs, but the "..turning into money" part is a bridge too far. I guess you have never heard of corporate raiders.

7...You don't use their language so I assumed you are not from a corporate background

I am not the one talking about blocks of land, and pig farmer mates expanding their farms. There wouldn't be a lot of value trying to delve into big words because its unwarranted. There are plenty of ways to sail close to the wind and not break any laws, or just straight out dishonour contracts. (Bass Metal BSM, legal action against LionGold of Singapore for repudiating a sales agreement. An example)

There will be no repudiation here, just a difference in strategy, and 51% always wins.

8...the people I have been talking to do have more experience with commercial transaction than you - hence my observation - not meant as any insult.

Not meant as a fact either, you don't know who I am.


Lastly and for the record, I have no doubt SD will be hell bent on ramping up gold production, site exploration and M&A resource acquisition. Their aim being:

1. to put a foot on as much gold as possible

2. spend their money very tightly during 1.

3. get used to operating in a foreign country and get runs on the board, get comfortable enough to start running things themselves.

4. send as much gold back to China as possible of course legally, to meet the Beijing dictat.

5. related to 2. as 227 drawn down secure finance for more drilling and M&A through hedges to support objective 1. Repay finance with gold at the hedge price. If operating costs rise and there is financial stress, SD and finance can assist FML further, Friends like these...

6. If there is spare cash flow, reprimand FML site managers for not assisting with objective 1.

SD achieves objective of being largest gold supplier to China supporting the National plan of "going-out" and getting a nice earner from the value gap above the hedged price.

None of the above is illegal. the 51% and 49% are disadvantaged equally, benefitted equally. It just that sp increase and increasing dividend payments are not on the agenda.

On hedges: -- an example of Millenium Minerals on 30 March 2012

" The hedge contracts provide for puts totalling 10,500 ounces at an option strike price of A$1,600 - which provides price protection during the ramp up phase, along with deliveries of 94,100 ounces at an average forward delivery price of AUD$1,673 over the first 3 years of operations."

" Highlighting the well-executed hedge move, in the past five years there has only been three months when the month price averaged above the forward sold price."

Hailed as a coupe and 1600 as a fair price, the price is now above $A1673, and above $A1600 since mid-August. Under similar circumstances expect to hear FML saying "..who could have guessed?"

All speculation I freely admit. Entirely legal. Just my speculation of aims, objectives and where the focus can be and which sh are being rewarded.

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Shandong Gold Mining Co., Ltd. Announces the Implementation of Profit Distribution for 2011
Jun 12 12

Shandong Gold Mining Co., Ltd. announced the implementation of profit distribution of RMB 1.5 (taxes included) for every 10 shares. The cash dividend is payable on June 25, 2012, record date of the dividend is June 18, 2012 and ex-dividend date is June 19, 2012.
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shandong gold mining co lt-a
(600547:Shanghai) CNY 40.19

so a dividend of 1.5 for every 400. Totally awesome praise the Lord.

Finally:
The company is also involved in the purification, processing, production, and sale of precious metals, non-ferrous metal products, and gold jewelry;

SD has down stream processing to capture value ONCE THEY HAVE GOLD.

Call it innuendo, or connecting the dots. Keep your wits about you, watch for spin, and look for the dog didn't bark.