cash backing not reached yet, page-14

"...I see the two n_____ continue to stalk the FMS thread...Pelm1 and Greedy..."


Unfortunately Taboon, these two gentlemen have proven themselves to be correct, and I think it justified that they continue to post, as they have for some time, in the same vein now that their views have been vindicated, particularly after the abuse that they have received from many on this thread.

Granted, the prevailing market conditions have contributed largely to the demise of FMS' shareprice, and the same can be said of their preferred stocks, in AXO and UMC, and of all stocks generally across the board.

However, at the end of all this the only companies that will be left standing in the speculative resource end of the market will be the high grade, low cost producers producers (or those who can demonstrate that their costs will be low)...and of course just as importantly, those with large cash reserves.

IMO FMS only fits into one of those categories, and only just...it has enough cash to continue drilling thanks to the recent options conversion (bet those people wish they hung on to their capital now, being down well over 50% in just a couple of weeks). FMS' ore certainly doesn't fit into the category of high grade ore, as it's levels of impurities to date are far too high, and I doubt that it can demonstrate that it can produce at a low enough cost to compensate for it's impurities. Further from that I can't see anyone fronting up the cash for beneficiation, or anyone buying the deposit in light of all the better quality ore that will, and is, becoming more freely available.

As for diamonds, well those who have been around, and know of the history of FDL, well, enough said...

If I were holding this stock, I'd be selling, taking the loss, and transferring the remaining capital into bluechips and quality low cost producers that have fallen substantially, but will obviously survive and bounce back. There are so many of them...and if you love FMS as so many on this thread seem to, which is a dangerous way to play the market, then you can always get back on it. It's always the way that in these market conditions, that the blue chips and the quality stocks recover first, and the specs last, if at all.