alacer and fml?? australian newspaper, page-49

Hi Tradesurfer,
Query-Reasons for FMLs dramatic decline over the last year or so.
Bit of a mix here so take your pick.
Extreme negative sentiment in entire gold sector due to paper selling (not physical) which in my view is vastly overdone when gold is still trading around A$1450. Currently gold is increasing in price when ever our dollar declines, widely forecast to continue due to our declining terms of trade due to lower bulk commodity prices.
Very poor and rapidly deteriorating Australian political sentiment, which almost the whole nation is now gloomy about, hopefully fixed in September.
FMLs recent increasing costs of production. Current slump in mining and mining services should help in the months ahead bringing these costs back down.
Ceasing mining at both Laverton and The Mount due to these increasing costs and lower gold price.
Recent deal with Stone Mining exchanging FMLs shares for Stones CREs minority holdings, and likely subsequent sell down of these Stone Mining FML shares due to Stones reported liquidity problems.
Ongoing obvious management problems at FML which recently resulted in the Manager CB being removed, and also for Managements recent poor record of keeping it's shareholders up to date with plans for the future, and the fact that they have been mining shareholders pockets for so long with repeated share dilution at very low prices rather more successfully than they have been mining gold, So far! However with Shandong holding almost 50% and having invested $224m recently I think FML will indeed change in this regard too, otherwise Shandong has done it's money I guess, and us too. Or maybe they will take the lot!
If the Stone selling of FML is now complete, already indicated by a sudden overwhelming increase in buys over sell orders this last week or so. Maybe FMLs share price can at least now recover to at least cash backing value, plus something for their extensive land holdings, exploration potential, and the Three Mile Hill Plant at Coolgardie. Wouldn't that sooth all of our souls and bring Pinto back with a vengence.
Then all we have to wait for is the gold price to recover enough, and the A$ to fall a bit more so one day lower cost production can resume.
Any resumption of a full blown gold price bull market, widely predicted to occur with global money printing on an unprecedented scale now, and many of these problems will simply fade into obscurity in the blue beyond! Then just maybe Focus will turn into something more than just a Superpit/ Lefroy/Boulder Fault dream. But Focus Minerals has certainly shown that gold mining is a very hard game, especially when the Bankers and many western Governments hate it with a vengeance.
With a still large cash balance thanks wholly to Shandong, and an improving share price (already up 50% from its extreme lows of last week will simply strengthen FMLs hand in any dealings with Barrick or Alacer assets who want to reduce their Australian holdings such as the Granny Smith mine & Trident Gold Mine etc, and any others that may pop up. Natural fit here but god help us if it means more dilution to infinity here.
Maybe Shandongs master plan at work here. Sad but these assets are already foreign held anyway so maybe its all too late now to be too patriotic.
Just maybe however there is something else significant developing here accounting for all this sudden out of the blue buying of poor old Focus. Wouldn't that be nice to ease the heartburn, just as long as they tell us about it!!

There you are something to chew over but maybe it's nothing but big punters seeing real value now in a simply massively oversold market with FMLs sell down maybe the worst, or better put, the cheapest goldie bargain on the ASX.
And what would I know anyway as I feel a little dumb in hindsight for believing in FML almost all the way down. I don't talk about it anymore! However just when I have about given up all hope for a turn around just maybe it is now on the way. A long term decline we have had and maybe the recovery if and when it comes will last even longer.
Like I said in my last post maybe anyone picking up FML at 1.2c a few days ago won't look so stupid in the months ahead, but didn't think a 50% gain would come in two or three days did I. Congratulations on your quick paper profits, but spare a thought for the long suffering long termers who need several weeks/months of this now simply to break even.
Not giving any sentiment on this stock at all after the last couple of years or so of tribulation.
But good luck.
cheers
mamba