high costs - and how fml might become viable, page-7

No, it is not just "theoretical". Gold is the least sensitive of all commodities in price to production volumes because so much supply is available from stores of gold. This doesn't mean there is no sensitivity but the effect of production on price is very low compared to other commodities with small stores to annual consumption like alumina, iron ore, oil, even silver. Other commodities can't stay below marginal production costs for too long because supply would dry up. The investment thesis of "buy gold high cost producers because there is a floor on gold price in production cost" is a risky one. Of course, a holder of FML would have to bullish on pog. Just as there are a lot of reasons gold could go up, there are many reasons why it could go down too.