consolidation, page-30

oh dear

consolidation rises its ugly head again.

Sorry,but i'd much rather have directors concentrating on the business of digging up gold cheapest they can and as much as possible,while proving future resources for when gold drops and it becomes uneconomic to explore.

Why worry about increasing our desireability to fund managers who only chase bargains at the detriment of existing shareholders.Wanting placements on the cheap.
Management that spend their time doing that,normally have a business ready to stagnate and need to be seen to be doing things,like changing logo's or company names and are after funds to meet their fees,none of which FML needs now and hopefully not in the immediate future.

Those that would like to own $1 fml shares should drop them in a draw for a few years.50% growth a year plus has a habit of catching up in the shareprice.

Cre takeover will more than double the business for a quarter the value of the existing FML.(that's more than 50%-try 120%)
when that's sorted,just do the maths in 6-9 months
Fml market value $260+ cre $70=$310
combined asset value nearer $550-$600m within a year
that's between 10c and 12c a share probably more.

FML pick up from CRE a business that would be worth what fml is if run right(given the tenements are 4x the size and in the area that hosts pig pits 5moz+)

PLUS around $210m in tax losses worth around $70m
Realise that and the value of Cre s existing production.
With NO EXTRA GROWTH IN THE BUSINESS which is highly unlikely,with TI in the wings and the area of CRE tenements hosting some PIG pits 5m oz+ all found below existing drill depths(ore starting 200m below the surface)

With no tax to pay,i would be inclined to suspect either the next $200m worth of profits will grow the business,or $100m be used to buy back shares on market or pro-rata.
At 10c that would be a billion less shares in circulation and would raise your shares around 2c or one fifth in value.
not too far from where you are now in share numbers before the takeover,but with a lot more assets,gold coming out the ground and cash being generated.
remember 6 months ago the bleaters at them being only worth 5c calling for consolidation.

Beats a share consolidation either way and ups the percentage longterm holders keep in the business.

warren buffet looks for companies with a 20% plus growth.
Fml's business is showing truckloads more than that at premium gold selling price as well.

No position shown as a temporary CRE holder