It is really funny that positive posters were accused of not...

It is really funny that positive posters were accused of not making any comment of the financials on the same minute I released the above.

Really, SS and I must have hit the post button at almost the same second. So his post was wrong the second it was published LOL. F&F was also unfairly blighted and I am happy to go on record to point out that is not only wrong it is not appropriate to state that either IMO.

Financials:
Some say I am 'interpreting' by commenting that the campaign at Laverton was well underway on the cut off date.

To me the raw numbers state only part of the picture and to ignore the important controls is to invite incorrect analysis.

This is a classic statement: "Again, ore on ROM pad, gold in circuit etc is taken into account of FML current assets. ie Inventories - $25.5m"

The flaw in this analysis is the heading "At cost:" As I correctly said the cut off point is at a given time. Unfortunately this AFR was mid campaign.

Take note that probably 95+% of the ore for the BGSM campaign was either in the BGSM circuits or on the ROM pad at the cut off date and yet most of the mining and transport costs were counted in the cut off date. Fact is even more ore has been accumulated to mitigate the risk of weather events during the course of the last financial year - all counted at cost. So more than 500kt or ore has been hauled for storage.

Even the low-ball 500,000 tonnes is over 41.5% of the annual mining volume (ore) at Coolgardie. That is a lot of ore mined, delivered and expensed before any of the income for that was received.

Now the accounting standard dictates that the ore delivered and on site is valued AT COST not based on the gold content. The gold in the system at Laverton alone was worth circa $39M. This is Laverton alone, the costs to add at that point of the system are minimal.

Take items like the road diversion as well ($6M) that was undertaken as an investment in the future to allow successive campaigns of mining to be undertaken at Apollo - not to mention the massive pre-strip. This work will return income for some time yet to be quantified - a lot more ore under that system will now be drilled.

I believe a thorough understanding of factors like this is essential for analysis. So why would some non-holder hang around to 'alert us' to the dangers and skip essential details like this? I have no idea, is it lack of understanding or spin? To be fair we have to factor real production in circuit when the production is handled quarterly!

The cash held, investment and development also have to be factored. That was not undertaken because we had bought a dog - FML know the value of what we have up there and so do SGG apparently.

One more call and I will be satisfied I am across the AFR. This research is essential to reach an accurate view of the state of the company IMO.

On the other thread - perfect Glenmore however some people in here will be hurting to have lost their shares soon.

Cheers,
CW
DYOR&DD