FML 1.85% 13.8¢ focus minerals ltd

Due to limited time availability for me, I will keep it...

  1. SNM
    35 Posts.
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    Due to limited time availability for me, I will keep it brief.
    From today's announcement: Coolgardie updated PFS by August 2020. Laverton PFS by December 2020.
    Coolgardie 2017 PFS was 40,000 oz pa for 4 years.
    Even assuming an AISC as high as AUD1500 they still make AUD1,000 per oz margin at current Au prices.
    For 40,000 ozs that gives AUD40m pa or AUD3m per month.
    It seems that will be where the money comes from to fund the restart at Laverton.
    So today's announcement does a couple of things:
    (1) makes a restart sooner because Coolgardie is a case of picking up where they left off,
    (2) tells us they can restart Laverton without either borrowing or capital raising, and
    (3) means that when Laverton recommences there will be two sites operating.
    Assume 40K ozs pa initially from Coolgardie and 60K ozs initially from Laverton gives 100K oz pa initially with no debt,
    100K oz pa at with a margin of between AUF1,000 and AUD1,500 gives between AUD100m and AUD150m pa.
    Even if you taken out 30% tax (despite there being tax losses) and assume half the balance for dividends:
    After tax becomes AUD70m to AUD105m and half that is AUD35m to AUD50m (near enough)
    If those figures are correct then you get a dividend pa equal to the current share price!
    You should also note that Greenfields is only 3.6km from Coolgardie town - easy for the employees.
    Plus it is only 400m from the processing facility.
    You have to admit this is a smart move,
    It seems to now be a question of when not if for the success of FML and we have a better idea of when.
 
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