Hi mercantaur thank you for sharing that. I read it with interest as this has always been part of my investment strategy in gold. That China would drive ownership and increase physical reserves.
This is fantastic for FML and gold investors at large. A question for you - how do you link that article to Aussie shareholders not being on their list of priorities from this article? There seems to be no negative against foreign gold companies rather the opposite in my view.
If they go out and increase consumption and hoard the gold in China this is good for gold prices. If they increase production for companies like FML then all holders will benefit from the strong earnings and production increase - especially if the Chinese are assisting those companies to grow.
The assumption some are running on in here is that China do not run according to commercial regulation in the face of the fact there are laws to be obeyed in order for them to get that gold. There is also good business practice. They have to work with the FML Board and Australian workers and Australian authorities in Australia with FML to get the gold they want and that has to be legitimate.
I would say this is a huge advantage not a disadvantage. If they break with commercial laws and practices they will cause problems for a company they have 51% skin in the game - hardly a sensible thing to do. Yes they want gold production up and in their vaults and are prepared to stump up real money to see that happen - excellent business proposition IMO.
JS maybe 'we' are not listening to your arguments because once the anger and xenophobia is dulled we are faced with commercial reality - and that looks like a very attractive investment proposition.
Cheers, CW DYOR&DD
FML Price at posting:
3.7¢ Sentiment: LT Buy Disclosure: Held
