Derham, you're mistaken in your reasoning. The conservation of...

Derham, you're mistaken in your reasoning. The conservation of cash you mention in second half last year if on drilling would barely have produced some assays let alone any changes to mine plan in December quarter just reported. It's a pleasant hope that drilling is going to find higher grades and thereby reverse the trend to higher costs but there is no evidence to support this hope. It hasn't happened so far, so absent some game changing new finds, what's the sound basis for your thinking?

If the new CEO has costs under control why is Admin budgeted at this quarter for $3m - an annual rate of $12m for a business with around $50m EV?!! 20-25% of EV on Admin!! It is delusions of grandeur and craziness and it raises the alarm that they have not yet come to grips with the seriousness of their situation (or regard the Shandong cash as there to be spent).

The $11m exploration budget for next quarter has been defended in these forums but I wonder when you spend money that fast ($44m pa annual run rate!), how much is wasted?

They just don't seem to have the necessary cost consciousness, it is as if they are still banking that higher pog is going to come and save them.

The one thing FML has had strongly in its favour last two years is near all-time high gold prices. So far gold has held continued to hold strong at around AUD1600 or better and this has allowed the situation to continue. Where would FML be now if gold was at its early 2011 levels of AUD1400 (let alone @1200 year before)? Out the back door...