You are correct there are other producers, one that has gone somewhat ballistic this week is Sirius Resources; from about 5-6c currently sitting on 88.5c, due to a significant nickel-copper sulphide discovery in a new province in WA. FML does have the potential to grow to this level, but one of the major inhibiting factors is going to be number of shares on issue (apart from other issues); SIR (who also own tenements around Lake Cowan)have 150.9m whereas FML has 3.4b. IMO, this is one of the key reasons why FML is going to need some significant profit dollars rolling through the door to boost SP. I know we have raised the issue before, but I would be very interested to hear what posters thoughts are about consolidation. When we view the FML SP, we must take into account the dilutive effect of so many shares on issue, and realistically it is a lot for a company of this size.
And please, SIR is simply a comparison in terms of SP growth, and yes, I do understand that it is very difficult to do a like-for-like comparison in terms of the company (but they both trade on ASX, both are miners/exploration companies, and one has had a meteoric rise in the past week from a discovery which I had dreamed TI could represent).
SH
Disclosure: Significant position (for a pauper) Sentiment: buy, buy, buy
FML Price at posting:
3.5¢ Sentiment: LT Buy Disclosure: Held
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