Have been a bit too busy to post in FML for a little while - don't want to bore you all too much either :-) But time for a bit of effort so I took 30 min out of my day here to put something down that I hope can crystallize the data for some of you - there is so much now.
Great to see this FML TV report I took interest in the Laverton update in particular as I know the rest of the story as well as any of you. What a great communication tool well done FML again.
Some observations: Lancefield has a strike of 1.6Km and will be unlocked as a significant system IMO. The Mill is in good order and condition, just needs a lick of paint here and there and a crushing circuit + gold room (not an issue). The shallow nature of the drilling in the area and an increased exploration spend will tell the story over time. This is an opportunity to grow to 1M oz+ in this area alone.
The Chatterbox shear hosts a major mineralized trend and we now control (most of - not own) a VERY significant strike length. Once again just scratching the surface & strike 9literally) and already found 500k oz - just shows you the potential here. Massive, will grow to perhaps 2M oz+ over the years however will be miner as we go. Getting overexcited perhaps there is the chance of a Super Pit somewhere in these tenements; a 5 - 10M oz upside potential but you will not hear FML state anything like that.
The reality check: I have been in business over the years and understand the major challenge here is the C word. Consolidation; it will take time as I have been hinting loudly as I want investors to understand this. CB stated this clearly as well as is their transparent way - I like that.
Management have gone into this growth phase aggressively and I applaud the vision and goozies required for such a gutsy move. Are they up to it? You bet they are, the market should see that based on actual performance over the past few years. The transformation of this company is awesome and will eventually feed into massive business and SP growth IMO.
Now we have to consolidate The Mount, Coolgardie Pits and Laverton and grow this business. The Tindals repeat opportunity will complicate this as you may need to hear the P word. Prioritization - all of this will take time. Not long in mining terms but I wonder how short your time horizon is dear shareholder. That is your call based on your personal circumstances and in NO WAY a criticism.
This is a very large consolidation however the picture will start to emerge over the next six to eight months on a more startling scale than we will see in the meantime. The team will not let up and they will do it - so cut them some slack occasionally if required, there will be challenges along the way as part of normal business.
There will also be excitement to tantalize us as well as this starts to emerge. This is a big picture post - helicopter view of a big picture vision and project. Understand FML and the scale of this properly and you will have a framework to do your own DD for this investment.
The next campaign is mostly on the ROM pad at the BGSM so minimum cost, so even though smaller next quarter will still remain slightly profitable (just guessing based on known data). Risk is excessive rain as the La Nina is back however not as strong as last season. I have put in my 2c with the company on this issue. Therefore some additional ROM ore stockpile would be a good investment. My numbers suggest the profit will be slight this last quarter and that cash will remain solid in CRE so maybe a payback of part of the FML loan is reasonable.
I have not participated in the FML production guessing game please forgive my arms length stance there it is deliberate - good luck to all. The foundation is set for a large ASX listed gold company to grow out of this consolidation and I wish the company every bit of additional luck to add to their planning, action and management of the journey - it will be a fantastic story. There is also risk to be managed by the company and you all like with any investment but I had to say that.
Warmest regards to all, CW DYOR&DD (don't catch the European political disease of Dither and Delay LOL this is Due Diligence).
FML Price at posting:
6.2¢ Sentiment: LT Buy Disclosure: Held
(20min delay)