Evening,Just 2 bob's worth. I have always wondered about...

Evening,

Just 2 bob's worth. I have always wondered about mining/oil companies.

cd's comment about fmg ---- I always wondered about having a flyer for a long period who didn't pay dividends.

ok

cd got in at .44 (if he was lucky he could have got a hell of a lot more for .07 for the same $)

OK - the run starts - and takes a while until it is worth apx $13 -------

What good does that actually do you? Do you sell ?
Maybe, then do you sell at -
$2.35
$13
$60
$2000 (in a decade or 2 later)

Say you were 35 when you bought for 7c or 44c and when you are 60 they are worth the equivalent of $2000 (should you have survived those years and without a divorce).

Unless they pay a dividend - to get cap. out you have to sell --------- AND the party ends.

I fail to see how a share portfolio that is worth millions - is any good at all unless it gives you INCOME.

Because if it doesn't - you are locked into an endless circle of changing investments and taking on new risk.

What I am getting at and really anything is possible - is that if the stars line up just right -- fml could be worth several dollars in a few years - possible AND within the bounds of could well be. - Imagine a pog of $5k and up and a few good drill results etc. - this is not wild wild speculation.
If you think it is wild spec. - go back and have a look at the emerging producers that were hot in the real gold boom - try cap. gains of 4000% - it happened, and this time - we aren't even getting warm yet, let alone a bubble or a boom.

But the point is - the sp would reflect it and the market cap would reflect it - but ??? would you still be in the saddle?

Now if it were paying .5% franked - that would change the game and most certainly if it were 4% franked - a different game again.

A point to remember is - mining is different - a $400m cap. stock can change in months into a $2,000m cap. stock and barely have any change in reserve/resource etc. ----
it only needs the commodity price to move and presto.

And when it does - how many more bits of dirt can you drill then and how much easier is it to borrow money etc..

The way I see it (fml) at present is that the wheels are very strongly on and turning nicely - maybe we have ideas to raise money to get bigger maybe not. I would have thought that this is a damm good time to keep pluggin as we are - nice cash earner, early exploration days and playing our own fiddle with our own plant.

Bugger the big ideas/risky ideas for a while at least - the machine is running very very sweet.

So, a bit of a ramble, but my confusion with mining companies is not really any clearer.

have a good night Pinto