fml v other goldies

IceyDoctor and others have often times mentioned that FML should now have a much higher share price than it has given the recent performance of AUD Gold.

I know others have been running well, but I didn't realise just how well until I plotted some of them up. Amazingly, FML has risen exactly the same % of AUD GOLD since all of them had a dip in mid July. Sound OK - it's not. Fact is, the % rise on GOLD equates to more than a 36% increase in margin for FML because of its leverage.

I am still on the "YES" side of the fence at the moment, but seem to be wavering somewhat in the last couple of days. This chart doesn't help things.

The last big run up in GOLD, FML messed with CRE. The timing was impeccably poor. At its peak, gold went up some 31% just after we got involved with CRE which soured the Market. At the same time as that spike, our purported margin through our leverage to a rising gold price was a staggering 132% yet our share price went backwards.

If nothing else, the Board seem to have a phenomenal knack of doing a deal that the market is not impressed with just when gold moves north. Perhaps next time they make a deal, I will just load into gold itself as it seems a near sure thing.

Lastly, I ran the ruler over FML's margin increase in profit back to its share price pre CRE deal (just prior). If cash costs remained fixed, FML tracked with the market and gains were seen for the leveraged increase in net worth from a rising gold price between then and now, the current share price today, would actually be 15.9c.

Two words - not ideal.


Quick Facts about the plot
Avg % Gain - 53%
Highest % Gain - 112%
Lowest % Gain - 27% (exc. FML)
FML % Gain - 11%

Sweet Dreams.