"investor relations", page-26

Thanks Tailspin,

I've been pretty busy building some market valuation systems. Besides that, there hasn't been much going on with FML except disappointment (for me).

I generally don't like to make idle speculation; so without much information there hasn't been much to say about FML. Perhaps the acronym in another context could be more appropriate for FML at this stage. Seems to be a constant chase for being 'good' next quarter, or next half, or next year.

My reasoning behind the $1,600/oz comment is that, whilst I think gold will go much higher, if FML can't get some decent cash flow going now - what is the point? Given the track-record, who is to say that they will be substantially better at $2,000/oz?

The way I'm reading it right now is that FML want to aggressively grow into a rising gold price. Great. Fantastic. However, what sort of growth will that be? It seems to me that it is turning out to be the sort of growth at any cost type of strategy. This tends to benefit the management but tends to be terribly destructive for shareholders (in my view).

I'd much prefer sustainable growth, underpinned by quality cash flows and growing profits (with some decent returns on shareholder's equity).

Frankly, the $7m net profit result is truly disgusting. We can talk about FML somehow building up these future profits behind the scenes, but where is the proof? I previously thought: 'okay, so we're bedding down CRE etc, growing and so-forth... perhaps this is another aberration'.

Then what do we get next? $26.5m ($106m pa) quarterly production costs!?! Thereby providing shareholders with a fantastic -$5m from operations or -$20m annual loss just for the privilege of being in business. Yes, there is an element of exploration and development expenditure, but this is recurring anyway.

No wonder the staff are all so happy! They are in business to take care of management and staff, forgetting the small issue of shareholders.

Here is FML's financing activities:

Looks a bit exponential to me. Given the fact that their current recklessness is heading towards further share issuances, it seems as though the exponential fit will be continuing.

Sorry for the negativity. I appreciate the fact that FML may get through this and do well. However I personally cannot invest based on hope and will only get back in to FML when I can see that they are treating shareholder capital with due respect and getting rid of the growth at any cost mentality.

Happy to keep posting on this thread - as it is seems to be a great community!