I too take Shandong at their word. However,in a society,where the best of protocols should be followed,lest they reflect poorly on you,one must view their desires as well as their words. A common Chinese saying is "Does a Cow eat grass"
No doubt they want a growing resource base. No doubt they want growing profits more. No doubt,after an appropriate time,they will make very forceful suggestions,to maximize profits and cut back on exploration to create profits and cash in the bank,for growth. No doubt they want organic growth,but have shown you can pick up half of FML for significantly less than its worth(yip and its worth more than twice what they're paying for their half easy DYOR+DYODD)and that signifies,its cheaper to buy ounces and plant than it is to explore for them,or build new ones.
Yes,they value FML at $90-100 an ounce,but that excludes the production capacity,existing plant and profitability of operations,especially if exploration was halved,to just replacing mined resources.This will happen anyway soon.
Management at FML obviously agree,so why haven't they scaled back exploration and banked cash for some more plant.
How much more valuable and profitable NOW FML would be to shareholders,with less JORC and another mill mining ore profitably.
They know the ounces are there,its just not JORCed. Woopedy do,it doesn't matter too much once you've mined them and exceeded ounces in the resource.60%? in the case of Empress,the numbers don't really matter,do they. As long as they keep giving MORE.
FML are already 3-4 months behind their tentative mining plan by the look of it and a lot of that is compliments of how they have over produced tons and issues at The Mount/Tindals U/G getting ore out,both since resolved.
Also behind in cash around $10m at a guess as a result.
You can't have everything,however,with different financial controls earlier,what would FML with $20-$30m cash in the bank value up to on market?
Certainly enough to get moving on adding another 100koz from a reconditioned mill,for a start.How much would just that statement,of letting contracts have added to the share price and potential profits at $1700 an ounce.Announce that Today and 5c will be a memory.
Aussie dollar finally heading for parity with the US and US$ gold well over $1700 and A$ price $1700 today.
Why do we need this deal in 3 months time? Nobody's bothered TO TELL ME YET. WHERE ARE THE CONDITIONAL CONTRACTS to spend $200m,that make it worth diluting my interest and giving away 100koz plus half of all the tenements and a booming upside.
You don't get this sort of money without commitments being entered into. SO What commitments have been made to Shandong and what have they been shown,I as a shareholder HAVEN"T?
Like all frustrated holders,i want the answers. I would really hate to think management have knackered the appearance of FML,by chasing massive resource figures,to keep happy a potential investor,while knackering the share price at the same time in a massive race.
If we don't start getting some valid answers soon,then maybe individuals with their own (possibly/definitely inaccurate)research may place that in the public forum to provide a better informed shareholder base and points for discussion. Believe me i have no desire to undermine FML management,their game play,NOR do i have a desire to find myself providing the bargain of the century to those with information on FML not generally available to shareholders,or superficial researchers,CW who i have great respect for excluded of course. However,he has a long term relationship with FML and if anyone knows FML and its future potential backwards he does. Lets hope his report enlightens us all adequately and not soon enough.
Fitnfam DYOR+DYODD
FML Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
(20min delay)