guesswork, page-15

Gents,

Pinto has hit the nail on the head.

No matter what production ounces FML will continue to budget $30 from every ounce sold to be used to find more ounces.I take it no-one wants it to stop when its only found one ounce for every one milled and maybe save $5-$10 and reduce the continual growth in ounces ahead of it.

FML could always do a NST and NOT MILL site trash and lower grade ore to keep per ounce costs lower,by running its mill at half speed.I prefer the cash that it produces and the removal of future environmental clean-up costs,that won't get cheaper in the future.Besides, a lot of these piles were sitting where new pits have now appeared.I can work out per ounce costs on3g/ 5g/ton ore and marginal costs on spare mill capacity for 1g/ton ore and done this way,it's all profitable.

I also prefer its method of costing i.e. $1100 pit cost(mining at a 50% costed profit).
Justify a pit at $1100 cash cost and we'll start digging it.If it gets deeper,then all initial costs are already catered for.Others work on the biggest pit they can get,drilling like there's no tomorrow and end up at real low pit costs but humungous capital costs that never seem to come back,then go broke mining this low costed ore.I'll take the cheap small pit at a profit to start with and get bigger later,when the drillings cheaper,with the pit already dug and access costs already written off.

FML cash costs include-royalty,which many others don't.

FML isn't selling gold on the cheap,or paying horrendous off the top royalties(i believe e.g. NAV 2% plus selling gold at 90% of the cheapest price for $1.2m of repayments a month on its loans)
Mind you CRE is fighting such a onerous royalty at the moment worth around $75 just on gold.

IF you can't see the difference in FML to others as they say,that's your perogative.
I personally wouldn't be here if it wasn't totally different to the rest of the rotten pack.

Nor do i mind a depressed share price,while upto 880 FML shares handed to Cre shareholders are sold down.Their fair choice and a small price to pay for FML getting 81.57% of CRE,without fronting FML any cash to buy a share.Not bad 4/5th's of another miner for shares and you valued them at 7.7c at the time.

Remember FMLs mill is full mainly from ore within a few KM of its mill(+ the MOUNT of course).It's only explored less than 10km around it and is now walking out further on its 200+ SQR KM of existing tenements,thanks to that $30/ounce produced budget.

DYOR+DYODD