breakdown of quarterly , page-10

I wasnt overly stoked with the quarterly but the information it gives is a fair representation of where the company stands at the moment.

They have a plant with 1.2mta capacity (increasing after the shut) but currently cannot mine sufficient ore to feed it.

The saving grace is the massive pile of 1g/tonne dirt that they can feed through to make up the shortfall. With the current gold price of around $45/g and milling cost of $24/tonne its still a handy earner.

I imagine the mining push in december at Tindals went a bit towards the cost blow out. The above target output here (not sure if its contract mining or not) certainly wouldnt have occured at 'normal time'.

So while FML has made the transition from explorer to producer it still has a ways to develope as a mining operation. I am sure they are not increasing the capacity of the plant so they can mill more of the low grade ore.

The ability for mining capacity to match miling capacity will not be an overnight occurence. If they mine it themselves then we could also expect to see increased capital expenditure as additional equipment may be required to meet the demand to mine. Or higher costs if the mining is done on a contract basis.

So calls for this quarter or next quarter being the ones may still be a bit premature. I will be happy if they continue to progress their mining operations to meet their milling capacity.

Im not saying their is no potential for the sp to rise in the short term but the company still has a lot to achieve before it grows into a fully fledged operation. I wouldnt be surpised if it isnt till next year when mining capacity is equal to milling capacity. When this happens I would expect to see a healthier share price

I am still very long term on this and I havent seen anything to change my view.

P.S
It was a good start to this quarter with 3000 oz being pured in the first couple of weeks (as per BRR interview) add that to positionat the end of the year and it helps