would you invest in fml?, page-13

Hi Fishhead06,

Those are my personal opinions, you may (as you have done), form your own opinions of course and not invest in FML.

Along with the positive you mention, there are bad points as well, and sometimes, a company can be a worthwhile investment, however, having one or more key strength indicators classified as "under-performing or simply bad" can be enough to depress the share price and scare away investors.

We are all aware that we are in a gold bull market. This itself also indicates a "flight to safety". As markets toil, gold will rise and generally vice versa (but not in all instances). In this type of market, it takes time for people to see the exceptional value of juniors as they are somewhat risk averse - this will change, it always does.

In my post i clearly mentioned that Focus was now moreso an explorer than a producer. You can see this in their spend (both actual and forecast). You can also see that they have spent very little on exploration in the past whilst still managing to turn a small profit. Again, an exploration focused company is not going to be the flavour right now, many punters want security. I think that as the market stabilises in the near future, then companies like focus will represent far greater yields than the big miners and investors will in time flock to them for their piece of the pie.

Leverage: OK, so you are in the Rod178 camp here, but still i have to disagree. A rising gold price (bull market) is represents far greater operating leverage for high cash cost producers than it does for low cost producers. Ordinarily, low cash cost producers offer far greater leverage, but in the bull market high cash cost producers see their profit margin increase more rapidly in % terms than a low cost producer. I am not doubting that this is a risky play, but high cost producers tend to run faster in a bull market than low cost producers. Where do you think the money will go. A company making $13M a year and forecast to go to $33M a year in a gold bull market or a company making $3M a year forecast to go to $23M. I understand that you have your views, but the company with the high cash cost still has considerably greater leverage to a rising gold price.

RE: 6c. Let's forget SP and talk market cap (~$231M). I don't play shorts or puts. I am also here to make a dollar. I think that once we can prove up a greater resource / reserve base and see the cash flow from a $1700 gold price in the Focus P&L, then we will be having a much higher market cap and thus, associated share price. I have given some reasons why i think the company is undervalued and i think they are doing things to rectify this.

Enjoy your day ahead.