fms - where to from here

Well we have released the Prefeas and the response so far was overwhelming positive... So where to from here ?

Fisrtly, I'm not convinced that the current rally based on the Pefeas is over. In fact, I think we are just having a healthly retrace after a strong initial rally ... I expect we will consolidate down at the 50% retracement level which is around the 18.5-19c level. It is at this region where I expect we will find support, ie those those that missed the original rush 2 days ago will look to take a low risk position here.

After spending a few days in this region I think we will rally again (Maybe with ann of further drill results), this time above the prev high of 21c to the 24-25c region... before a pause again. I expect some resistance in this area as this is the all time high for the stock since they began drilling for Fe. A break above this level would be very signifcant and would indicate the rally is to continue much higher.




On the news front we have results expected from the further drill out of Delta, Champion and Eagle in the Pilbara. According to the 22 Dec update these assays are to be received about now (ie, mid Jan). We are also expecting the 1st FMS Drill results from 39 drill holes completed Canegrass in Dec along with metalurgical results.



Drilling is expected to recommence in mid Feb (3-4 weeks) with the focus being a drillout of Delta to measured status. Once achieved this will alos increase the value of the FMS asset in the Pilbara with will also be reflected in a rise in the SP.




I also suspect in the background negotiations are taking place with several potential parties regarding, but not limited to, mine gate sales, merger, T/over, etc with the major players Rio, FMG, and perhaps the Chinese.

So IMO all looks very rosy for FMS going forward... and as prev mentioned when they secure transport/port faciliies ...then that is when Sp will double or even triple from here.


The Caveat to the above is a general market collapse or collapse in the price of Fe... Or some major ann (+ive/-ive) by the Co.