the ballard of fml, page-10

Thanks for comments in the last two posts.

One of the things which I think Shandong can see in FML is a lot of gold in the ground which might not be profitable to mine and process at the moment, but when the gold price improves, and FML get their mining and processing plants operating efficiently, there will be significant profits to be made.

There should be substantial benefits from whatever acquisitions they make, such as economies of scale by sourcing additional suitable high grade ore and improved mill capacity. They will need to contain overheads and substantially increase production, but I'm reasonably confident that Shandong will have set out some fairly stringent guidelines to be followed, and I would be surprised if they did not already have a short list of potential acquisition targets before making the move on FML.

If FML are considering additional financing arrangements, we can probably assume that they have something fairly big in mind, and I guess that we'll get an announcement sooner rather than later.

Cheers, Mike