I take a very simplistic approach.as a shareholder NOT under...

I take a very simplistic approach.

as a shareholder NOT under water, happily buying FML @3.5c.

current annual production 176,632 oz.

Current share holders get the full 176,632 oz.

"Placement proceeds to support Focus’ goal of becoming a +500,000oz gold producer"

"USE OF PROCEEDS
The funds raised from the Placement will establish the foundation for Focus to grow to become a +500,000ozpa gold production company through development of existing gold projects, new discoveries from targeted exploration programmes and the potential for value accretive acquisitions".

just to make it easy lets say the SD offer is 50/50

with the full dilution in place, 50% of 500k is still 250,000 oz

so our earning per share actually increases.

Yes, our CURRENT assets will halve (mill, reserves and resource)leaving us with 2.15m oz however this is offset with an additional new asset... CASH a heap of it actually at these levels its 1.5x our MC (currently ~150m). It is possible we will be owning 50% of any future discoveries which given the ground, could be upwards of 10m OZ leaving us with 2.15m + 5m total of 7.15m OZ

Yes I am pulling these numbers out of the sky but we do have this potential.

our Achilles heel is and has always been costs. With such low grades we desperately need these to be south of $1,000

In this cash constrained environment it doesn't look like it will be coming any time soon, except through trimming the fat at the group level, as is currently being done.

At least we will have access to cheaper equipment if SD gains a stake.

FML's SP appears to have the midas touch.. in reverse (thanks Tony) only FML can have director buying activity on to see the SP head south instead of north.

My observation is that the SP is dropping on VERY low volume, no one is prepared to commit $$$ until they know the outcome.

Deal or no deal, FML @ 3.5c is cheap.

I was fortunate to have been patient, I said I would increase my holding by 50% if weakness remained and on Friday i did.

"The cash that could be generated from the Strategic Plan’s success could be utilised for processing upgrades/expansion, other capital improvement projects, acquisitions of prospective surrounding land tenements, new areas and last but by no means least, the payment of dividends".

this is something that would be years away, with out the deal, any income would be diverted to development ($200m worth)by what i am reading on FML's ambition.

Can anyone have a guess what the SP would have looked like if...

we were trading at 4.2c (just before the deal) and focus announced a cap raise @~3.2

not only would we have dropped to that level, it would have only fueled speculation on when the next one will be and @ what price.

This is a cap raise to end all cap raises, a bit of market certainty, now the only question is how will the money be spent... (should the deal go through).

I think no matter what, the SP should recover from these levels.

Good luck to all

the night is always darkest before the dawn