To be honest, I just don't believe management...if you look on page 7 the gold grades haven't changed...so the explanation they have given doesn't make sense...
My suggestion that costs have been improperly allocated does make sense on the numbers...
Management should clear up any hint they have engaged in improper conduct ASAP...
This was only one of the issues I had with the announcement...
In any case there will probably be a problem with one of their pits every quarter...With a large operation you just dig and pump the order into the concentrator...with FML's operation they are poking around in all these tiny holes and things just go wrong too often...
NCM has shown that once things go wrong they start perennially going wrong in the gold sector...Part of the reason is perhaps managers becoming fat and lazy, mining the good stuff first and leaving the bad stuff for later etc...
I think FML will eventually fall to a level where it may represent good value...
Put it this way at today's gold price I would pay 5 times earnings...FML needs $10m npat per quarter to be OK value (with upside from TI)...I just don't believe they will consistent pull $10m npat per quarter at today's gold price...
Ann: FML March Quarterly Report and 5B , page-61
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Last
14.0¢ |
Change
0.005(3.70%) |
Mkt cap ! $40.11M | |||
| Open | High | Low | Value | Volume |
| 14.5¢ | 14.5¢ | 13.5¢ | $12.79K | 91.36K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 60148 | 13.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 14.0¢ | 14983 | 1 |
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| Last trade - 15.59pm 19/07/2024 (20 minute delay) ? |
| FML (ASX) Chart |