rumor mill kalgoorlie

Hello guys,

The mill at Coolgardie was shut down for one day as a scheduled exercise - to reset safety procedures. Some operational changes have been, and will be made in line with the new advances in the Group. Kal being the beast it is saw a bit of scuttlebutt about and a brief stall in the depth / SP on the unsubstantiated rumor this week however I believe confidence is warranted.

Things are progressing very well. Although I am not privy to any numbers I hear a massive review and cost cutting exercise is set to transition this into a revitalized operation. This is just what we want to hear. As I have been saying the time to buy a stock is when operations are turning to the upside and yet nothing is factored into the price as yet.

Care and DD is required to get this right - get it wrong at your own peril. Turning a company from an explorer to a new producer and then ramping up to a top tier producer is not easy. It takes time yet this is evolving rapidly in the right direction. The staff changes are key to the success of this and I am personally very happy to put my money where my mouth is. I work as hard if not harder at this as any of you.

The culture is changing in line with the new COO and CFO as FML transitions into a serious producer. These are exciting changes however some changes will cause some to feel the pinch as new financial efficiencies are introduced. So be it, this cannot be avoided.

The drill rigs were also pulled for one day for a scheduled planning review and FML wanted to meet with one and all. This is part of the new efficiency drive and prioritization is required to efficiently deliver the right balance of discovery and ore delivery. Communication with the whole team was required and i applaud this as a sign of sound management.

The other issue: CRE was taken on as a distressed asset and it is being turned around. They are now cash flow positive so any issues remaining from past operations are being handled. The internal mood is upbeat at upper levels and down to mid management although some would probably like to spend more money. This will come in time as FML have a bright future.

I run a web site and it is interesting to note the rising interest in traffic. I have done all sorts of other research that suggests the best is ahead of us for this sector. Share price games are being played you can see this in the depth - its called 'trading' and impossible for the ASX to prove anything as offers can get pulled on the basis (is that excuse) of overnight news events.

I also run comparisons on companies in the sector and closely study their path to success or failure. Is FML anything unusual among the successful group - I think not except that they have avoided debt and this pushes up the cash cost.

The staff build and assets are key and I really like what has occurred in the company as well as the noises and moves I see taking place.

I was not paid to deliver this message. This post is based on available information.

Sincerely,
CW
DYOR&DD