is a takeover possible, page-2

I have to give a resounding no to even the possiblity of a TO occurring. This is not where management's heads are right now. Some companies know they they just can't get their little 'b**st*rd' project into production and just want the fairy goldmother to rock up one sweet morning and make an them offer, to make all those years of toil worth while. FMl is not one of them.

A takeover offer right now would be a massive disappointment and diversion to management.

If you consider a set of rough the numbers for he 2010 calendar (alone) - approx 90,000k oz au, up to $110m rev and $50m PBT, plus a doubling of the resouce base to say 4m ounces au - it would be just nutty to even consider a takover anywhere near the current SP. Sensible to make one but stupid to accept one!

Back to the BPT. A PBT of £50m divided by approx 2.5b shares amounts to a profit of approx 2 cents per share. Multiply that by say 14, a reasonably conservative pe given the upside, and all of a sudden where looking at an SP of nearly 30 cents, within the next 12 months. Given the fact that management consider they are in the process of creating a regional giant accepting a TO offer at at anything less than 20 cents lacks both wit and logic, both of which management appear to have at depth.

A TO idea right now is neither fuuny or logical.

I prefer to stick to the realities, for moi they are more than sufficient.

KIWOZ48