Pessimism or potential?, page-6

The reserves table is in the Annual Report. However, it will likely be updated later in the year for Laverton as a result of the recent drilling results. Also, there may be a drop when the sale of Coolgardie is finalised. However, the recent discoveries at Laverton are likely to make up for the loss of Coolgardie, perhaps only part of that loss in the short term but the whole of that loss in the longer term.

As to the earlier comment about the processing plant expansion, I just guessed an amount for that and I thought it would probably be a one-off. What would make sense to me is if, during the period their profits are using up tax losses, they use 30% of profits (ie what they would have paid in tax if they did not have tax losses) to expand the processing plant as that would leave the same amount each year for exploration and dividends. The short point is that, even allowing for exploration and expanding the processing plant, there is plenty left to pay a dividend.

In relation to compulsory acquisition, I have seen nothing to suggest that it is an aim of Shandong to own 100% of FML and they would likely have two problems with that: first, getting Australian government approval; secondly, as I understand it, they need to get 90% of the shares in order to be able to do a compulsory acquisition of the rest and the fact that Lloyd Miller III accumulated a holding of more than 10% stands in the way. It appears that, following the death of Lloyd Miller III, those shares are held on behalf of his estate by Neil S Subin.