toll treatment, page-11

Nice numbers in all the calcs, I am not sure anyone has it right (I am no beanie either).
Production costs are not just a function of tonnes milled.
The actual production cost is the processing costs + the mining costs. Not sure about gold mines but every other mine Ive been in the processing$ /tonne is a lot cheaper than the mining$/tonne.

I am comfortable with the fact that for the toll treatment period the entire operation was run at a loss. The rate charged seems reasonable and certainly covers the expense of running a plant for that period (if it is costing us 3mil+/month to run a plant we are all in trouble)

The reason we lost money is becuse we didnt produce any FML gold to sell in the LaMancha period while they continued incuring mining costs.


The cost per ounce was there to see in the prior announcement when they announced the yearly average, It was always going to be high because it had increased from the 3rd quarter, most of us were just to lazy to do the maths. Some werent hence the downward pressure on the SP in the lead up to the quarterly.

I am not even thinking of selling this for at least 12 months. I am not expecting any stellar jumps in SP but a gradual rise as the company grows and stabilises. It is still a puppy. I look at this as an investment stock.

Good luck to the traders, have at it but from all the comments it sounds like a tough one to trade.

Congratulations to management on a great year and result and I hope there are many more to come. I hope they continue to keep their eye on the prize and not the share price.

Have fun all