ann?, page-29

- So long as USD continues to weaken against other currencies then USD gold price should continue to rise in straight USD terms.
- As an aussie producer FML will gain both from weaker AUD v USD due to floods/interest rates/GDP etc but also weaker USD and therefor higher gold price in AUD terms.
- http://goldprice.com.au/
This is so long as gold's benchmark measure remains in USD, maybe this will never change, well perhaps not in my lifetime?
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As far as leverage goes if gold goes to AUD2,000/ounce then FML is still well leveraged on margins of cost $800/revenue $1,300 = margin $500/ounce. If revenue jumps to AUD2,000/month and costs remain the same margin = $1,300/ounce. I.e. We are leveraged at 2.6 times the gross margin.
Whilst this is a simple equation other goldies may not have similar leverage as the price rises such as companies already making $750-$850 an ounce will only be leveraged up to around 2 times gross margin. Now if gold turns to a downward trend then FML'ers and alike will be the first to go.
I'm not saying that gold will go to $2,000/ounce as i'm no economic guru but if it continues to rise FML gets better from a leverage perspective than others who already are enjoying better margins and SP increases now.
This factor and FML's already percieved low sp and 90,000+ ounces in next 12 months + TI and other deposits gearing up i'm optimistic to say the least.
Two quarters of proof to the market should see the ball rolling again. End of April for 8c - 11c range.