fml qtrly production guess and costs, page-23

gents,

as we seem a little off track with more detail and Laverton now in the mix,so to complete my picture.

53500 oz produced 216koz/yr run rate
-average cash cost $1100.
-$20m++ cash generation($13m free)

2/5ths the way to that 500koz/yr

-5koz short of 175koz this financial year as promised in last qtrly -due to reduced Laverton milling time,Tindals u/g
issues last qtr.Any positive upside will be at Coolgardie and MY Future Cost projections there downward.

32000 oz Coolgardie
$923 cash costs.

21500 oz Laverton
$1330 cash costs

-taking in to account the tons/grade(1.84g/ton?)already on Grannies Rom pad at the beginning of the QTR and an anticipated (by me) reworking/re-allocation by our new moneyman of Laverton costs since aquisition to bring them inline with that just done at Coolgardie for the end of year accounts.With a Total of $8m of $10m extra production costs charged this Qtr to reflect the finite term of the milling contract and hence any development to dates reduced anticipated production life?

If any production is lower,i would expect it at Laverton with even higher costs there as a result.That's why i suspect FML didn't convert 5 day WVAP to push control(compulsory aquisition)when it possibly could have/should have,before de-listing.
Contract expiry(June 2013?) a ticking time bomb for minority CRE holders as Granny Smith ups its own mill use with increased ore supply continually starving CRE operations of production and cash to pay down creditors/FML loans.Uneasy bedfellows?Still,if CRE collapses then,FML get the lot without any CRE minority shareholder complications and can allocate capital directly.Costs as a result-will be minimal and cheaper than buying out minorities and Stone.

As to being rung by brokers,when times are tough,look at where the moneys flowing and who's going to be clicking your ticket as a result.
Stop and look at a movie,think of BOBBY GECKO? and working the phones
Ask where they think that freed up money should be going and make sure you don't own any.
And if they're pushing FML hard,tell me so i can SELL-QUICK.
Thank You.

DYOR+DYODD - CRE was a strategic tenement/plant/tax credit grab.Ongoing Milling operations with a finite term,but a chance to pay down site debt and get it all for next to nothing,hopefully getting a cash return for equity dilution costs.You don't need to get everything to come out a winner big-time in the end,although it would be nice.
Who cares if we lose those CRE tax losses?----------?FML
Who's got cash tied up as equity in CRE to lose?-NOT FML
Who's got control of what happens next there?--------FML
Who can BLOW OUT Barrack Granny S cash costs?--------FML
Who bought 15%+ of the PRIOR ore supplier to Grannies on the cheap------Barrack
Who got that same mine at Mount Morgan from the administrators----Min Metals (january?)
Is around about $11m a fair price for non-producing CRE tenements and an old mill in liquidation plus return of 81.57% of any extra surplus raised to FML anyway???
Do Barracks want to pension off OLD Granny-but the upfront closing costs/redundancies/rehab too great?

Is someone playing with FML's shareprice?---???

Do FML want to look desirable for a takeover???

Is FML a cot case with complications enough to scare them all away,until it's too big/to late to swallow???

Or are FML squandering a higher gold price playing a game of i want to look like a BIG BOY???

DYOR+DYODD so much to consider-apologies for digressing.
GO is about gaining possession of territory for the least of cost.FML has done well to date.Cash cost to date $11m loan plus $3.5m costs for control and 81.57% of any CRE profits to come.


Fitnfam