Let's play devil's advocate as to why the market isn't getting aboard the FML train for now. The following are (unsubstantiated) possibilities:
1. Maybe there are too many shares. Maybe the prospect of a share consolidation has put investors off because the post-consolidation price usually dips for a while. Or maybe the current price around 5c is below the insto radar.
2. Maybe the market foresees a need for further development work, beyond that currently funded, and fears that the hat will be passed around.
3. At roughly 200,000 oz, FML reserves could be being seen as relatively modest for now. Prospective investors may be hanging back until the resources-to-reserves conversion process is more progressed and the rates of conversion are better known. (Resources are roughly 2,000,000 ozs.)
Somebody please refute all this!
I hold FML.
FML Price at posting:
5.0¢ Sentiment: None Disclosure: Held
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