AGM was yesterday, this is my opinion and interpretation of what was said and discussed.
BOY1 covered a lot of points so some will be repeated here.
Not a lot of new news, but some interesting discussions. The attendance was far greater than previous years including one shareholder from NZ. We they also had some of the PNG drill crew in attendance, which I'm not sure if its related to the Tasmania trip last week. As Peter preferred to fly them to Tassie to run their custom rigs there in the past, cheaper and faster.
Forgive me for repeating known information:
I'll start with the majors interest: True the SP does not reflect what many people feel is the true value of FNT, today another case point, with $3k worth of sales dropping the SP 2c this morning, on the back of world conditions.
The view is very different from the people that know. Peter stated the Confidentiality agreement with Barrick had expired. So he could mentioned them. Barrick, Newcrest and Goldfields have all expressed strong interest in Andewa. In what form Peter didn't say. But he was no intention at the moment of loosing control of the lease. Barrick and Newcrest have been on-site and are all three are goings a second appraisal. Like many posters on here, they see the true value long before the market does. Peter is happy for them to know they have competition with each other and wait for what is offered. This has not been chased by the company. Which puts us in a much better position to negotiate.
Andewa: Peter has been happy with the results so far. He has been drilling targets in the resistivity or conductivity depending on the target. This has not produced the grades he wanted, though as stated he is more than happy with the grades and length of intersections. (much discussed here).
As Boy stated, Peter believes the higher grade gold could be in the shoulders of the anomaly. The current drilling is checking this hypothesis as we speak. I'm not geologist but he spoke of the current results being the diffusion of the source of the gold. At this stage it appears more of a gold deposit than copper going on the current grades.
On the graphs for the IP, the massive red mass in the middle of the deposit will be drilled once the big rigs get onsite, Peter didn't want to start drilling get the results he expectes and then have to start again with a depper rig. As points out by the other geologist on the board, that anonmly is almost 600m in depth, huge. - go back and have another look.
Under ASX rules, they cannot state whether its economic or not, but there is agreement that this is shaping into a very viable deposit. As one of the directors said, its all about the economics and they have the experience and spoke about the economics of similar mines in PNG they had worked on.
Tassie: IP scan is moving along, they are aiming to have it completed by Christmas, though a recent section has slowed the progress of the work. On rpevious drilling Peter would have stated a higher indicated resoure for Tassie deposit but the lead geologist insisted on the drilling they are doing now. The field geologist has the final call. The company wants enough data to determine asap whether they can economically develop the deposits in the North of Tassie.
They has also had an approach by a major inregard to the southern leases. So tassie isn't dead ;)
OK Tedi: - only focused on Copper at this time
Peter covered what a good deal we have with Ok Tedi compared to any other major. Bulargo: was offered as the company didn't have the resources to porperly explore and develop it. AS its in the boonies..even for PNG. But only 40km from OK Tedi current mine. Company spent their last $500k last year doing the trenching etc. WHich the assays got FNT the great JV terms. OK Tedi is drilling for copper, not in the location of the high gold strikes. But as stated they have to drill a minimum of 5 holes in that area.
The first whole over a week ago was ta 100m.
Esis: currently waiting on Assays from the 1cm thick visible copper in the end of the core. First hole was 400m on memory, but the second hole is deeper, I think closer to 600m..but you need to check that.
No real progress at this time on the other leases despite the initial timetable from OK Tedi.
In the AGM, this discussed: Only the bigger drills will be sent to Andewa, with the smaller drills kept in reserve as needed. I think 1 small drill and 2 large are good. As we need to drill the deeper targets asap.
One holder asked why a separate release wasn't put out saying Ok tedi had commenced drilling at Bulargo. As it was only mentioned in the quarterly.
Other holders asked when the company can start to indicate the size of the deposit at Andewa to the market to get it the SP moving.
Peter indicated while the results are coming in from Andewa are "good" he beleives any short term surge in the SP will come from Ok tedi results. As the current market is very risk adverse and subdued and looking fro a big result. Very frustrating for all concerned for the company.
The company philosophy in having on the books as many leases as possible to explore remains the same. While it looks like the company is spreading itself, acquiring prospective leases stop the company being a one trick pony.
In casual chat after the AGM: It was raised that the directors should buy some shares on the market :)
A change in how the company is trying to tell its story about what its doing. I feel Peter is currently so busy that that sort of marketing is being missed a little. IMHO I think Paige leaving for her own company has increased his work load.
Assay timing: I spoke about the turnaround time. They travel by boat as the air services are not reliable therefore by ship is better. He gets the gold results very quickly but the other minerals takes a long time. The ICP analysis takes a long time. Also the cores are shipping out of sync with the top bottom of one core being shipped with the top of the next core. This is causing the delay. For example Peter has the top hold of the next hole but waiting for the bottom half of the core..
If he gets a result off the chart, he will release is ASAP without waiting for all the results.
Looking forward:
While the current SP is in the doldrums compared to highs of February, the company now has four major programs underway. And realistically is a far better position going forward. While I won't make predictions on the SP, the last week has just shown dropping of insignificant turnover, frustrating but just shows that 99.5% of shareholders are sitting tight and taking a longer term view. All the short term people have departed for the time being, though I bet we are on a lot of watch list.
Andewa: Proving what we have. Tassie: Whether it can be economically OK Tedi: Getting moving with results soon to be released from the first ones. Bit slow off the mark unfortunately.
In my opinion 2011(Dec)-2012 will be good year for FNT and I would say the start of a very good run. Just not a quick as some people expected back in February.
Thoughts and other opinions..
FNT Price at posting:
11.6¢ Sentiment: LT Buy Disclosure: Held
(20min delay)