fml cash burn? cash bal. forecasts, cr in fut?, page-4

Hello SH,

Good questions,along with CW i have no figures.
The share price reflects this indecisive moment for FML.
Which room of opinion that is right will only be known,when the light is turned on by the company.CW and i have openly taken our positions,myself rather strongly.

I DO NOT see a need for a cash raising,in the immediate future and given the current share price and FML's shown ability to arrange facilities if needed.I suspect that will be the preferred path in the future,irrespective of the future share price.Payback the $8m and they will still have that facility,no doubt as a form of insurance.

Much of FML's forward planning and certainly its costing forecasts are not disclosed to us.However,FML have shown a definitive level of resilience in the face of a few adverse issues over the last 2yrs.In this time FML have pre-expensed many capital works well ahead of time and immediate need.In a sense setting the stage for the next and future production.Not something you do if your lining up a near term capital raising with a depressed share price.

WITHOUT $24m in capital expenditure this QTR and obviously production in July at Coolgardie UP and the cash coming in soon already for CRE operations to pay its latest mining costs for the last 3 months,with only 2/3rds the mining costs ahead of it at Laverton and nearly NO capital expenditure,you can make some reasoned guesses,for those operations also.

I'm more interested personally in what move they make next,now that both sites are essentially sorted for ore and capital expenditure for the next 2yrs.
It leaves the board able to FOCUS on where next.
Will that be plant expansion,small aquisition for cash,new underground mine,or whether they sit and accumulate cash/gold awaiting the shakeout of miners without forward resource?

I suspect something that bolts on CHEAP AND EASY which either adds incrementally to higher grade or milling capacity at either or near existing sites.Some PLANT near the MOUNT would kill trucking costs.Maybe it's time to totally resource map that whole area -Nepean Nickel included,just as they are doing at COOLGARDIE and aquire a plant that can be converted from nickel to gold,do both,or gold to nickel if need be.

Already we are seeing mention of puts(last QTR) for gold already at hand.I suspect more gold at hand and more options such as that to maximise/insure returns ahead.
The question may become is it better to keep Gold in the Vault or cash in the bank,or even pre-sell production.
Barrick became what it is now by selling forwards for up to 15? years(DYOR),insulating itself from the last gold fall.
If you could guarantee 100koz a year for ten yrs,and get forwards at $1600 plus an inflation margin,i would be as happy as Larry and that would make FML a Blue chip investment overnight.

DYOR+DYODD MMM -the figures