talking of 2's in a pack of cards.One on its own is worthless,having four that link together creating value as they increase in number makes all the difference.A lot more fun and options whe you have two decks to play with.
The cards that FML holds require a bit of research.Having done some serious looking,SEEING THE WARTSs(there are a fair few-see below)and all.With due consideration i'm setting up to add a few more shares.
All businesses have warts,it comes down to whether they are cancerous or benign,or get sorted quickly while they are benign before they can become cancerous.
CRE was one sick PUPPY.Some Cancerous Warts were
1/Off the top royalty agreement - Now CRE court challenge to it.(worth $75 an ounce)
2/the main CRE source of ore being no longer acceptable(admiral pit)-irrelevant with new ore source.
3/Being told even blended it wasn't welcome-sorted-new ore
4/Stone holding secured thanks to DB dragging the takeover chain.It has Cost them considerably since holding FML shares that suffered the aftermath of that slow decision to accept for the remainder of their shares.Should have been 15c by now,with a fairly clean takeover.-Now looking increasingly irrelevant to FML's future profit from FML's control of CRE to me.DYOR+DYODD
5/Barrack contract-No we don't have 50 days a quarter in reality.-Some things do eventually change only 5 runs to go.Then crunchtime.Looking forward to it.Not time to crow.
Given all of these warts the turnaround at CRE in such a short time is MIRACULOUS and should be seen as so.Also verification that McFocus skills/methods are transferable and readily scaleable.
FML would have known most of this was coming with Due Dilligence and STILL CARRIED ON.Either incompetent ignorance or knowledge its all manageable(i go for the latter,given thie quick changes)
The cost $3.5M in expenses- a loan of $11-13m earning interest and a Quarter of the shares in an 77koz gold producer(FML)----Chicken feed for 175koz+ this year coming and more than doubling tenements,production and an old mill thrown in.
Still wouldn't have a CRE share myself unless it was a lovely old engraved one worth hanging on the wall.DYOR+DYODD Owning CRE outright is not important to FML.Controlling CRE is very much so and what it has done there is,in coming negotiations i am sure,when FML may be offered a real OLD TIRED AND WORN OUT ELEPHANT(forget TI for the moment)that needs taming/resurrecting/rejuvenating(without chinese interests),not just a little baby in CRE to be sorted.DYOR+DYODD and allow a bit of imagination.
FML's biggest wart
The kick in the goolies FOR ALL Coolgardie and Widgemmootha miners was the JUNE COUNCIL MEETING last year when twilight trucking curfews and road charges were put on trucking thru council roads,unless it has since been modified or revoked.Essentially killing 24hr trucking and the flow of trucked ore,until alternative haul routes found and established.I would say that's probably ripped 5koz a quarter out of FML since then if implemented immediately,let alone NGF who were complaining about the capital cost of having to put in weighbridges so truckies could have loading dockets.The charge was 1c?/axle/ton carried/km(may be.1c)DYOR+DYODD
Hence the expediting of pits near the mill,i suspect and the throwing out of FML's orderly growth plan and the need for the cash injection for the quick change of mining direction.Doesn't really hurt delaying The Mount if you now have to store ore on a ROM pad until alternatives are sourced for trucking at night.What's a month or two.
If you've ever felt like you've been stuck thru a mincer and survived with no thanks,i imagine that's how current management feel.
Hence my unwavering sentiment---TO BUY on this DT/CB management and crew. any other lot in control and FML would have been long gone with these hurdles.
DYOR+DYODD
FML Price at posting:
4.8¢ Sentiment: Buy Disclosure: Held
