Hello jujutrain good questions.Can I pose this another way...

Hello jujutrain good questions.

Can I pose this another way please? You have 10 acres of 1/4 acre blocks, that is 40 of them. You own the land, two houses sit on single blocks and you have them earning you money. You can afford to build one house a year from the income and have great assets and don't want to share them with anybody because houses are going up in price.

The guy next door is in exactly the same position and sells 20 blocks (51%) to a partner that can help with cheaper building materials, development expertise, cheap loans to build and etc. He puts up the houses over the course of 18 months, he and the partner sell 6 because of the cost savings they have cash to spare - and end up owning 14 houses outright with full capital returned + some and 7 houses each in income to retire on.

You build one house a year and end up with 7 houses in the end but you missed a lot of rent and then the GFC happens, the bottom slowly drops out of prices and no buyers around to sell to. You have struggled and risked losing your job along the way which would have held things up. Maybe you sell a house or two along the way and lose that income and you spend maximum developing the deal as time goes on.

*******

This capital can do so much more than build 20 houses it can build a construction company. The gold price will be capitalized on in full because very large production will be in place with very large capacity and resources - large revenue base. All sorts of opportunities will arise.

Take Nepean - one example - drill it sure up resources and build a concentrator (modular), keep the 30% BHP would normally take and the 2% PGM's as a bonus. This derisks the project because we control it. We become a very low cost Ni producer with commensurate value to share price because we retain the revenue and profits. Ready off-take partner and no dilution to construct and borrow some capital cheap to set it up. Total value to FML as a whole could be upwards of $500M. There is potentially all the money back at this price and SD in one hit and this would not be possible currently. Sure we could sell it but the return would be minimal for shareholders for this asset if we do that.

What can Laverton, Coolgardie, Lake Cowan be turned into with sufficient scale and capital? Major return to all investors is the answer. Ground position can support this easily but needs proving - do FML wait for the end of the gold bull or go for it?

If you don't see this and want to disagree then sell. It is that simple for you. If you are a holder and don't agree then vote against it - simple. It is not a done deal, but at $100 per resource ounce, massive capital and strategic partners into the bargain I will be voting (I think still working not fully assuming just yet) for this.

I am sure this is the way they are thinking juju.
Cheers,
CW
DYOR&DD