Ann: FML March Quarterly Report and 5B , page-77

I agree that sentiment is low...

But if the cash cost are strucurally and perennially high then the price has further room to fall...

The sentiment needs to be low and the cash costs needs to be low to make good profits in my view...

Interest rate cutting should be good for commodities in general because of the AUD effect...

Of course the lack of transparency presents an opporunity for the analyst who does the most digging...

I can not find any note in the annual report which makes transparent the cash costs...I suspect the analytical exercise will be time consuming and I have a busy schedule this week...

From a high level standpoint, the company is exhausting some of its pits and they haven't made a return at record gold prices...Futher because the mill is at capacity there needs to consistantly be higher grade feed to get the costs down and with so many different tiny pits i suspect this won't happen...there may be a temporary uplift (which can be traded) but the stock will come back down once it is exhasted...

I note that bushplum referred to there being 17m of 9g/tonne gold...how much is really at these grades? maybe 5,000oz max? Then they go back to making no money from the low grade stuff...

If the grades can double consistently then the cash costs can be halved (ceteris parabis)...I look at the drilling results and see things like 13g/tonne over 0.3m (how is that significant!?) i dont see 4-5g/tonne over a significanty area that can be dug up at low cost and dumped in the 1.2MT mill but then again I am not a geologist...

Of course if the above can happen and I am convinced then I would re-enter the stock (maybe at 4 cents) and trade the next quarterly results...