i bet on fml becoz

I bet on FML becoz......

Status: Producer
JORC Reserve: 1.8moz gold
Producing Cost/oz: 537 aud, this may improve due to recent lower energy cost.
Management: Very capable mgmt, which has always achieved more than it has promised.

Cashflow:
It will be unhedged & cash flow positive by june 09 by repaying its debt from gold production. All future exploration will be funded by gold production hence no need to go to market/bank to raise cash,This is a very good sign especially in current environment.

Production targets:
Gold production is targeted to deliver approximately 65,000 ounces in FY2009, ~75,000 ounces in FY2010 and then ramping up to a sustainable level of 100,000 ounces per annum from FY2011 onwards from projects currently within the development pipeline.

Earning potential
-----------------
By FY 2009::
Assuming GOLD is at 1000 aUD(averaged at lower price them market due to part hedging at 960/1060)
cash cost/oz 540$
Profit/oz = 1000 - 540 = 460
Total Profit: 65K * 460 = 29.9M
EPS: 29.9M/1300M(Shares issued) = 0.023 aud

By FY 2010::
Assuming GOLD is at 1150 aUD
cash cost/oz 540$
Profit/oz = 1150 - 540 = 610
Total Profit: 75K * 610 = 45.75M
EPS: 45.75M/1300M = 0.035 aud

By FY 2011::
Assuming GOLD is at 1150 aUD
cash cost/oz 540$
Profit/oz = 1150 - 540 = 610
Total Profit: 100K * 610 = 61M
EPS: 45.75M/1300M = 0.047 aud

SP at PE of 3x, 5x, 10x, 15x? depends on gold price and future market condition.


Upside:
Tremendous exploration potential, They might be sitting on a Superpit :)

Plus it also has Nickel.


Please DYOR.