Hi Recyug,Thanks for your comments on my forward estimates post,...

Hi Recyug,

Thanks for your comments on my forward estimates post, however like you I seem addicted to all these promises that FML keep making.

Came back to you on this thread because of your seeming concern at CB's comments on his $400 to $500 margin philosophy for FML.

He has been consistent on his margin and production costings for FML since about day 1 and what he says makes sense in the overall FML scheme of things.

Our milling and processing costs per tonne of ore are industry average with the only real variable being the grade of ore being processed - we run at lower grades than most other miners, so the only way we can make a decent buck is to process lots of ore from mines that have a long life, and one way to extend mine life is when available on a cost effective basis to take lower grade ore from them.

Think the theory is that our mines will still be going, when other existing miners will have to spend a lot more than us on development and exploration dollars to open new mines and harder to locate higher grade ore bodies.

If you like we are there for a slow but steady long haul, rather than trying to achieve a shorter term more spectacular success.

The upside for us is that with our large tenement mix we may yet end up with that large scale higher grade ore body that will see our production costs fall.

From a shareholder perspective it is a bit of a horses for courses selection in picking what type of gold miner you want to test your angst factor against.

My track record with the shorter term more spectacular gold miners at the right entry point is not that good and that is why I am probably a lot more comfortable with FML, although I have to admit that my angst factor is increasing as quarter after quarter these little suprises come to light.

cheers. kentwang