- 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?
.
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.
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14.5¢ |
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Mkt cap ! $41.55M |
Open | High | Low | Value | Volume |
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Buyers (Bids)
No. | Vol. | Price($) |
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2 | 63063 | 14.5¢ |
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Price($) | Vol. | No. |
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15.0¢ | 130790 | 5 |
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1 | 7142 | 0.140 |
3 | 47421 | 0.135 |
2 | 20009 | 0.130 |
2 | 29121 | 0.120 |
Price($) | Vol. | No. |
---|---|---|
0.150 | 130790 | 5 |
0.155 | 14055 | 2 |
0.160 | 47300 | 3 |
0.165 | 34919 | 2 |
0.170 | 8718 | 1 |
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