I doubt SH will make a takeover bid as they will be unlikely to...

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sharerookie

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73

20/12/23

17:43

Post #: 71554446
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Originally posted by Indented Head: ↑

Direct quote: FMLs goal is to ensure it delivers on the most efficient use of capital, leveraging this strong financial position to create long-term wealth for its shareholders.Obviously this has not happened for long suffering investors over the past 11 years.
Anyone buying FML today at 0.17 cents or more is an obsolute steal, considering our major share holder and financier that owns 180m shares or 62.84% owes them currently $1.38 per share. What ever happens in the future, todays buyer is well insulated against negitive board decisions.
If the share price remains low in 2024 we may see SH make a take over bid for compulsory aquisition and then full owership. My reasoning is, does SH think FML will ever reach above their break even price. If not a total buyout by SH is far cheaper costing less than 20m.
There would be many hoops SH would have to jump through to achieve that goal, but I can't see SH continuing to be positive at their current $248m investment plus loans, particularly when (Morning Star Fair Value) estimate is 0.26.6 cents = $47m. That's more than $200m down the can.
If SH doesn't try to Compulsory Aquire and sticks to their 62.84% and follow through on their current plan with some positive press, we may see FML rise from the ashes and may be get back to a share price near the heady days 11 years ago.

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I doubt SH will make a takeover bid as they will be unlikely to get FIRB approval. Shandong gold is a very large multi-billion dollar organisation. They have loaned money to Focus to get to this point and the company has been exceeding expectations over the last 12 months. The future looks very bright for Focus from a gold production and exploration point of view. I will be interesting to see the results from the current quarter. 2024 should be an amazing year for Focus Minerals. All we want to see for now is the company exceeding their timelines.

FML Price at posting: 18.0¢ Sentiment: Buy Disclosure: Held
11 Upvote

7 Great analysis

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