FML 15.2% 14.0¢ focus minerals ltd

compounding gold strategy

  1. 36 Posts.
    Hi everybody,
    This is to all, who have a problem with high cost of production at FML/CRE. Before I move forward with the real story let's first establish one thing, lots of research and long periods of due diligence have pointed us to one and only one thing-The monetary policies of the central planners are going to keep undermining paper based currencies and hence keep appreciating the value of GOLD. Even the glitteriest of a “DOOR NOB” out there is predicting that there is more chance of a rise in GOLD price then there is of a steep drop.
    Moving on to compounding effects of a GOLD price rise. We have two producers -a low cost producer say XYZ.AX producing at say 500 aud and pocketing a cool 1200/once and hence valued accordingly. And then we have a high cost producer say FML.AX producing at an average cost of 1200 aud and only able to make 500 aud/once. The short sighted buyers and sellers, as unforgiving as they can get, value it accordingly.
    Now moving on to scenario two GOLD price of 2500 aud. Producer 1 makes 2000 aud/once a big jump of 60% in profits and hence say a jump of 60% in share value. Even the shiniest of “DOOR NOB” would say I am happy, I invested wisely.
    But hang-on what just happened, producer 2 our own FML.AX had a profit of 1300 aud/once and it turns out they just somehow had an almost triple digit upgrade in outlook and hence in share price. The herd runs towards FML.AX as FML.AX keeps running away from them until they decide, the grapes were sour after all.
    Simple moral of the story, this is a once in a lifetime opportunity and the offer will not last long. So what if the price of FML is almost half of what it was when I first bought it, once I start making money with this one it will all be ok. After one of the soon coming quarters FML is going to surprise the herd with beyond expected amounts and grades, if gold price is simultaneously up-there is no looking back. After all I am only dumb, still miles away from being a “DOOR NOB”.
    When I first heard of “Compounding gold leverage” I first started to search for the highest cost gold producers on ASX. I was looking for something in which no one would want to put their money. I already owned FML then. But my eyes went on CRE and the potential it had. Next week out of the blue FML announced a merger with CRE and it felt like ……. Don’t need to buy it, it’s already mine.
    I am a dumb novice at the markets, any suggestions and corrections of the facts/non-facts here are welcome.

    J
 
watchlist Created with Sketch. Add FML (ASX) to my watchlist
(20min delay)
Last
14.0¢
Change
-0.025(15.2%)
Mkt cap ! $40.11M
Open High Low Value Volume
14.5¢ 15.0¢ 14.0¢ $34.69K 242.4K

Buyers (Bids)

No. Vol. Price($)
5 132799 14.0¢
 

Sellers (Offers)

Price($) Vol. No.
16.5¢ 4616 1
View Market Depth
Last trade - 16.10pm 28/06/2024 (20 minute delay) ?
FML (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.