Ann: Cancel - Proposed issue of securities - FFX, page-70

There are many people making forecasts about the future of FFX that do not have access to all of the information that the existing board and management team have. I would expect that the incumbent CEO will also have this information given that he will soon be on board and no doubt would want to contribute to the creation of a successful survival business plan.

Yes the situation is most certainly very very serious but as virtually all SHs have little information then we are probably better off just waiting patiently for the company to disclose what their plans are going forward. About the only positive comment I can make is that the company has not yet declared itself insolvent. For the directors this has serious implications if they continue to trade whilst insolvent.

OK my thoughts are that as we are still operating and while that guarantees nothing into the future, it has given the current management team time to create and carry out a short/medium term survival plan and to conserve what cash that they have left.

The positives that give me some hope are:

1. The directors have allowed the company to keep trading!!

2. The employees at the mine site have a very good knowledge of the existing orebody so the cheapest areas to mine can be targeted to maintain or improve cash flow

3. Significant expenditure has gone into the reconditioning of the gold plant in the last 2 years which should result in improved recoveries and operating cost efficiencies

4. All of the new mining equipment that was scheduled to arrive in Q1 calendar year should now be available which would improve extraction and operating efficiency by a huge amount.

5. The rise in the value of the US$ will result in lower local operating costs such as labour. However transport and certain mining extraction costs will have a strong if not direct link to the US$ eg fuel costs.
I simply dont know whether this is a plus or a minus to operating costs???

6. The value in the shares held in LLL are rising steadily and whilst they cannot currently be sold they do form an increasingly valuable and tradeable asset in the long term. I would expect the value of these shares in LLL will double in value in the next 12 months and quite possibly triple in value. I refer you to the increase in value of PLS. Time will tell.

7 The company has identified a large mine resource which one would expect with competent management and an efficient recovery plant can be operated profitably.

In the meantime we wait and wait to hear what the fate of our investment will be.

Cheers W2