breakdown of quarterly , page-6

vlad

great to see someone else digging deeper and doing their own calcs.The next six months will be a killer,if things go as planned(as management have indicated)

FML steamroller has been climbing a hill and used a bit of coal to get to the top(cash expenses for exploration,capital development etc)

The problem with steam rollers when they start down the otherside(they then need b'all coal,cash input),is they don't have any breaking,other than the gearbox(stopping production).They just have to keep their steam pressure up(idling with just with just enough forward proved resource and mine planning to replace what they've withdrawn).we're nearly there.

so at the end of March-capital expenditure at the mount for access finished.(that's what only 1.6m or so.)
then allow say another $1m to open up a new pit.
Then the rest is just usual ongoing direct production related expenditure and rising grams /ton

Basically if the gold price fell tomorrow,Fml,could stop exploration,stop milling crap from the site and still run profitably as it randown the hill,with its own forward momentum,all the work laying out the next few years is already done.

So what does it tell you about cash costs,well to some big extent,you can change them with the wave of a hand.Its also true of production costs,by not touching low value resources,i.e. leaving them as remnants(which is what most of these independent miners are scratching thru now,abandoned by the big boys as uneconomic in the past).

YOU CAN ALSO KEEP CASH COSTS UP BY NOT SELLING GOLD,or building surface stocks,or upping the spend on parts,or by bringing forward capital works as maintenance,upping exploration,development etc.

which is what FML has done.A lot of raiders,only look at the financial report and ignore the activities.(never let an accountant run your business or your country,or invest your money)

like i said before,what if that gold was sold and fml reported sales of $32.5M versus 24,or whatever.
Then again what if 2x 24 is just under the $50m and a lot of discussion about taxing miners selling over $50m/yr.

either way,add the value of the gold to the first quarter and you have a better picture.

the quarterly figures were as i expected.the increased production thru the mill and extra ounces produced and hoarded a bonus.A VERY BIG ONE even if that extra 37k tons milled was only at .9gram,to keep the average cash costs up there.

PRUDENT MANAGEMENT-versus Rip ------ and bust.
i always used to say to the ex,turn around,when your feeling like things are going nowhere,look back a year or six months and compare where you stand.If you do that with FML,you can see how understated its performance has been.

the next 6 months will see a big ramp up and i'm looking forward to the ride.
unuseally for me i won't just say it,i'll alter my sentiment as its a no brainer.
Wish someone would pay me for my thoughts-any directorships going out there.

cheers