a yes vote is your last vote ever in fml, page-12

alfieval2000,

I am very concerned about the share price.I have a significant amount of skin in here,sufficient for a couple of houses.

I do not see a need for cash raising in any form,except for FML CORPORATE BENEFIT.That's employees and Co's benefit.
That's the company entity,NOT SHAREHOLDERS,so lets not get confused there.

To do it so destructively for shareholders equity by "wholesaling a 51% interest and control" and denying shareholders the benefit of it by upfront on market purchase,is tanatamount to telling shareholders to get st---ff--d and shows a continuing disregard for shareholders interests,evident over the last 12 months,with such a porsity of communication IMHO.

As for only developing 2%-4% of FML's available resources,I work for a company that doesn't even touch half a percent of its.Nor does BHP,RIO,Fortescue,or any other company,so that's a balderdash excuse,for wanting this deal.They expand as profits and cash flow allow them to.De-risk what they have producing and then move to the next project,unlike FML trying to do it all at once half-assed,although fairly successfully.
If instead of drilling the Mount and Greefields/TI exploration,in the last year,they would now have 600kton extra milling and the cash and lowered costs that would come from it,to spend on what they would have delayed.By now they could have had both.

e,g,Our section of a much larger business has maintained continued profitability for around 20yrs.
The resource side of it will never make a loss.That is soley because there is no need for accelerated capital investment with stable production rates as should be the case with FML at Coolgardie and Laverton NOW.

Booms are not the times to be acquiring mining companies,unless they are going cheap.So the thought of FML and acquisitions,other than distressed ones for operational plant,scares the hell out of me.I can't help but think of Poiseiden that set it all up for WMC to take over on the cheap,just as FML acquired CRE after near $300m had disappeared there.

FML with $227m in the bank will be like a compulsive spender with an increased overdraft,heading for the nearest place that'll take it all.

In hindsight,you can see the company might coincidentally be seen to have been positioned over the last year,to make it highly desirable to Shandong,or another buyer.Placing FML in a worse cash flow situation than it need be,e.g.by accelerating capital works at Laverton,such as waste clearing 18 months ahead of need,while ignoring 3mi upgrade.

Throw in 38-40koz(at Barrick yield of 34.7g/oz) mined but not processed at Laverton in the last 12 months,by my calcs,not only does that indicate $60m less milling costs of $12m sitting there,but doesn't that destroy costs per ounce,having only milled around 2/3rds mined ore.
Just under half milled ore there was from site trash from my calculations anyway-22koz worth.
That's Over 600kt of site rehab done at a profit to boot.

Leaving plenty of meat in the sandwich for the new owners.

Enough I say-WHAT ABOUT THE EXISTING ONES?

Extend 3Mi and get cash aside for Barnicoat.Stop drilling/exploring greenfields for a few months and FML will have the cash and ounces milled-TO ADD INCOME and even more free cash as a result.

DT has worked for GOODMAN FIELDER in their baking division.I suspect that was prior to Graham Hart,taking control and rationalizing it,by closing 1/3rd or so of the bakeries,liquidating the sites and making the others run at full capacity to really make some money,from what was from memory a loss making division.

DT joined the board in NOV 2003 i believe and this allows him a dignified exit next year NOV 2013 after 10yrs,while allowing one of the new Shandong Board members the best part of a year to get ready to try the shoes on.

So much for creating shareholder wealth for us.Company wealth yes,but alas shareholders have been missed out.

I see NO as the only way of existing shareholders regaining the equity they have placed in this business.Simple as that.

If shandong want it,they can BUY IT FROM YOU AND ME - ON MARKET and PAY WHAT IT WILL COST.It'll be more than $227M that's for sure.

DYOR+DYODD Do your maths and see what value is sitting there for new owners.If we can't have it,maybe a better operator at BOARDROOM LEVEL will,such as BILL BEAUMONT.$15m worth of shares should swing it to a no vote and then a share offer for the rest would have us in droves,I'm picking,especially the investment houses.Or just buy enough for control,put some cash in the bank by leaning it up a bit to break it up or flog it off.You don't need FIRB approval to do that either.