Hi Bazza,I agree that total costs hinge on the selection of a...

Hi Bazza,

I agree that total costs hinge on the selection of a goldie.

However, none of us have any idea what the price of gold will be on Monday, never mind in 2012. I,ts crystal ball stuff. If gold is up on Monday, I grin, if its down, I grimmace.

So, my significant choice on picking a goldie like FML is sustainability of previous targets, amount of further exploration planned to maintain long life stock, and previous qrtly results. All of these contain data to make a choice. The predictions are in the qrtly activities..Accept them as you interpret them.

So I can,t agree that I should have some idea of what the price of gold might be in the future before buying a goldie

Buying on a guestimate that gold will be 2K-5K by 2012-2013, is like playing the pokies!.


Each year, automobile manufacturers in the US, Europe and Australia expect an annual cost down of 3% from all of their suppliers. Therefore continuous improvement of op costs is a paramount exercise to ensure that the 3% does not come from last years profit margin.

If for example, FML can produce a pile of dirt with an expectation of 100,000Ozs year, and when they begin, the gold price is $1000oz, and Op costs are targeted at $500 per oz, any gold price hike should be profit.

why does the op cost need to increase?. Nothing has changed with the producing process (apart from mechanism and mother nature, which should be buffered within the op costs anyway via predictive maintenance).. The only change at FML should be the increased bottom line.

If fML reports that op costs have again followed an increasing gold price, then it should become apparent that the board are not focussed on these costs, and are not applying top down pressure to field management on reducing these costs. At this time,the hard questions to them must be answered.

Once a goldie is bought, monitoring the performance of management in managing my investment, is more critical than trying to guess the future gold price as an in out guide.

For some LTs, I believe the June 2012 qrtly will be the catalyst report, which will indicate how bright the light is at the end of the tunnel.
Until then, I am comfortable that FML have been a good LT buy for me.

Slange

Alba

PS Gold was up this morning, check out the grin! :-)