where to with stone ?, page-6

Hello,opportunist

I suspect Stone realize their predicament.That being a minority shareholder,locked in and FML with no intention of making any distributions from CRE in the future. Before now,they may have hoped FML would take them out at a CASH premium.

Simple accounting from FML's point of view,FML was happy for the accumulating Debt at acquisition to stay within the old CRE,especially as for some time CRE would have been going backward.

In essence,the delay in declaring the takeover complete allowed FML to treat the accumulating debt as "before acquisition"and part of the acquired business,instead of these showing as trading losses by FML in their accounts.

It also enabled FML to place a "NETT COST VALUE" on its equity position in CRE.

Once FML get to 10c or more,I'm sure Stone will happily swap for FML shares and exit at a "NICE PROFIT" and save much "FACE".

Personally,if i was them,i would do it now and then the price will hit 10c as a result and they could get on with life.

Stone run the risk that CRE(FML Laverton)may have no milling space at Granny Smith,or if there is a renewal of the milling contract in 10 months,there may be even LESS MILLING TIME and consequently make the whole site/business worth even less.

Stones chance to exit is quickly vanishing and possibly FML's desire to have the lot may be going as well.Only one side knows what the future holds for Laverton and STONES side is blind.

As it is FML can likely book an equity profit on trading since acquisition.
CRE's independent accounts may still show a full year loss/break even.
CRE may still owe FML what it did at the beginning,in fact $8m more.

FML may still get the lot for its debt,if Barrick doesn't mill their ore and CRE operations shut down to care and maintenance in 10 or so months,or gold tumbles.

The only thing for sure,is Barrick have been milling more and more of their own ore.CRE(FML LAVERTON)less and less.

DYOR+DYODD Every which way FML have the upper hand.The tenements do have value,like Nepean and could happily sit for 20yrs,awaiting better times,or $20m spent on the old mill.