Gents,after Paddigtons post hitting the nail on the head,where...

Gents,

after Paddigtons post hitting the nail on the head,where could FML be heading?

We have seen ceasing of production at Laverton.

1/The consequence of that is to make BGS Mill uneconomic for Barrick,just as they are looking to sell Australian assets,drastically killing its potential sale value.
That is however nothing compared to Barricks South American problems and mounting debt.Their other Australian sites are now marginally profitable at current gold prices at a guess,even after large plant expansions over the last few years.Surrounding this BGS Mill to its north is FML's laverton interests,that if royalties and challenges to resources by other companies are lifted will need a running mill.The $64m question is how big? 1.5Mt Barnicoat or 4Mt Granny Smith

The settling of the CRE debacle has freed up $300m or so of tax losses and given FML a free hand with the existing mill plant,tenements and uneconomic ore stockpiles still unmilled.

2/Tax lossses to write off against profitable acquisitions is a lovely bonus and makes it easier to back into a 100% owned entity at Laverton,or allow their use elsewhere.Value $80-100m going forward.

3/Mill plant to be reactivated or used as a bargaining chip for BGSM with any future owner/operator,or TO BE RESITED,partially or completely as part of Coolgardie or elsewhere expansion(The Mount?).

The mention of capital being expended to lift encumberances,so FML can borrow freely.

4/This implies some buying out of royalties or rights to minerals on FML's tenements(including CRE) are nearing partial resolution.

5/FML intends to borrow and the only way you get the money,is to provide a profitable clean unencumbered scenario to any lender.Again targets profitable Barrick assets,if not others on the block also.

The latest increase in debt rather than reducing cash reserves,indicates some recent costs/expenditure were not what the remaining $160m has been earmarked for by Shandong.

6/Could be a financed purchase/s planned around the $300m-$600m mark depending on how much input a related Chinese bank needs.Certainly $160m left has earmarked uses planned for it in the NEAR FUTURE.

The Mounts staff were predominantly seen off around Xmas,I believe and now we are told contractors are doing some driving at 4x the efficiency of FML's prior operation there.

7/The Mount is far from being abandoned as uneconomic as most of us suspected.We are told better mining methods should up yield.???

Things are slowly taking shape,what remains to be seen is how much economic ore can be found to keep FML's milling viable.

8/$250m paid for a HALF SHARE of $150m cash left plus $70-$100m of tax loss value only if you have profits to offset them against,says maybe they know something I don't.

DYOR+DYODD Like buying rentals,it is a matter of which property becomes ripest first for the best yield.