lack of understanding, page-3

gents,

if you've ever wondered how McDonalds make money on a $1 hamburger,without working it out,then you will never understand FML.

I take McFocus's costs with a grain of salt.High cost producer---Yeah,right,pull the other leg.

This is a business with a business agenda,that includes doubling everything as part of its business philosophy,in the one cost,while being a good corporate and exemplary mining entity,with reference to how clean it keeps its operation and rehab liabilities under control.Growth,what it gets for it's money and everything it does has a secondary benefit FACTORED IN.

Everything FML does has an ulterior motive.I am not psychotic here,just do your research and see what they get for their money and how they operate.
There are just too many co-incidences that are just so-conveniently timed.Doing things in the right order,even if it distorts costs and cashflow,but is the most efficient way of doing things longterm,or reducing overall costs longterm in the most cost effective of manners.

This is a culture.A Miserly one.A very miserly one,but not so mean that they won't buy the best available,OR GET THE BEST PERSONNELL,BUT ONLY IF IT"S TRULY REQUIRED WHEN IT"S NEEDED,NO MATTER WHAT THE COST,as long as it economically stacks up,or they do what needs to be done,for the same reason.

When you see like minded minds at work in a corporate sense,that resonate with your way of doing business and Know how rare and ultimately how immensely proftable,it is in the business world,you realise what you have hit on.

That's the difference between wealth and mundaneness for the same cashflow or business,or in this case similar tenements and grade of ore.
The wealth here may not be immediately apparent,but comparing like with like,especially mining companies,that leave their rehab costs,until they are nolonger in business,versus a company that not only eliminates them,but clears up old mining liabilities in the normal course of business,at a profit,even if it temporarily distorts per ounce costs,is to be admired.NST,just bought tenements that cost it's prior holders over $32m? in rehab costs many years ago,after they finished mining.That was a capital cost to their shareholders,straight out of their pockets.
You won't see that at FML.

What happens when those rehab costs no longer weigh down,per ounce costs?There soon will be little site trash to distort those figures in coolgardie.A clean deck and flat site.

Did i mention that some of these trash piles were sitting over budding pits being dug now,everywhere they looked to place overburden,sterilistion drilling keeps throwing up resource,or that the overburden on top of this pit ore is now extending the tailings dam height to take another 8yrs production.That the gold price makes digging pits economic now and the pits have to be dug to get depth,because at depth is higher grade ore that all the big pits and really big mines and monster cashflow start at around 200mtrs.
It's not often you get paid to dig the overburden ,or lower grade ore off you new underground mines,and able to process it at a profit,no matter how small,but todays goldprice makes it possible and profitable.So does the need for material for your taiings dam make it desirable and reduce its overall handling cost,although it does cost upfront.
FML are not letting this opportunity to multiply operations and mines be lost.

"Expanding into a rising gold price" nearly says it all.They forgot to say"PROFITABLY",because they wouldn't bother otherwise,it's a given to FML management,WE'RE MEANT TO ALREADY KNOW THAT.

DO WE?

DYOR+DYODD My position says it all AS WELL,from 5c up to 9c all the way down to 5c and back upto........ and beyond.FML's bigger,better,considerably stronger and now more than twice the size of a year ago,with higher grade ore,more production and a gold price $300 higher to boot.
Think of the reject shop as a valid low cost business comparison for FML's future potential.4 yrs from 4000oz no running mill to potentially No 5 Aussie gold producer milling 3.9 million tons
This year Coolgardie will be starting to shed real cash from stable operations matching its MILL size.