just opened at 12 month high, page-17

angelakarps,

sensible question so i'll try to give you a sensible answer. the answer imo is not much can go wrong.
i say that in that they have been ticking the boxes for some time now, they have been mining for 12months and are producing and have positive cashflow. They will retire debt and hedging by the end of the year and are then poised to take full advantage of gold prices.

so what haven't they ticked yet?
well the resource is currently being upgraded, an extensive drill program is in the works and results thus far are positive BUT if we want to be realistic their is a chance the gold may not prove up in other areas. (highly unlikely imo however it is a box that hasn't been completely ticked yet).

secondly this mill is only just being refirbished, again highly unlikely, but in fairness there is a possibility something could go wrong when they switch from toll milling, there may be some hiccups but again one wouldn't suspect anything major if anything at all.

the third thing i can think of is that you already stated, POG tanking, again highly unlikely however we already know cash costs are $603 with toll milling and will reduce by $70 per tonne with 3 mile hill. In that Focus will save about $6mil straight up over their first 12months, and much more as tonnage and grade increases.


so there you have it, i doubt any of the above will occur but that what you need to keep a tab on to play it safe. I believe management have played it safe, they have ticked the boxes and these last few boxes will be ticked over the next 3 - 6months making some very exciting times ahead.

once this is humming watch for the upside from the nickel potential ;)

best of luck with your investment
Davo