FML 8.57% 19.0¢ focus minerals ltd

bet stones starting to feel a little sick?yeha

  1. 1,846 Posts.
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    Hi ALL,

    In case you didn't pick up on the last FML 3B

    FML just collected another
    4m CRE shares,BUT it's the approx
    64m CRE options that must be making Stone feel a little SICK in the stomach and There's still another 14m? out there for the grabbing as per the CRE ANNUAL REPORT and STONE DON"T KNOW WHO HOLDS THEM,or how many holders,but CRE/FML DOES,i bet.

    In total around another 4% of CRE after conversion just collected(5% before),getting very close to 90% with conversion of debt to FML with this last lot.The extra ones outstanding will take it very very very close.

    Naturally New FML appointed directors will be given performance options as well,or they may infact take their payment as CRE shares,as happens in so many companies these days,which will automatically revert back to FML,if they are FML Company appointed directors to the board and of course issued at a discount to the current market price to boot.No doubt the employee incentive scheme is already in place from before the takeover,so Stone wouldn't have a legel leg to stand on if it follows existing CRE practice.

    I feel the squeeze coming on.Ever seen a stone sweat?
    Gonads Getting closer to the crushing circuit as we speak.
    Feel it in me bones.Like those old silent movies with the big saw spinning and the woman tied to the automated feed mechanism heading towards oblivion.Hopefully,Six months to a year and it'll all be over,if not by the END OF THIS MONTH.
    Stones got cash obligations at A1,don't forget,could lose a lot of very public face if it were to back out,because they're locked in here.
    Cre operations,even if profitable will be a case of all surplus funds expended on development,for a year or two,or three,so don't see any free cash coming to CRE shareholders or stone in that time,possibly longer.
    I do expect the FML Quarterly to be later than normal due to these circumstances and possibly early next month i.e.
    a week or two later than normal.

    on BRR,thought i though i heard the statement,"FML is well on the way to being the largest gold producer in AUSTRALA".Don't think it included the words "one of",but happy to stand corrected.If those words were spoken it was in a tone that made me register what i did.I'm sure either way there's more deals after this one,already lined up.We're going to need more tax losses SOON(for FML operations)and more PLANT,here's why.
    1.2MT milling 3MI
    2.4MT milling capacity tied up ex Barrack
    1-1.5mt plant awaiting restart(within a year,i reckon?)
    That's 4.6-5.1MT milling capacity in the wings end 2012.

    And too much feed lining up for even 5MT of milling capacity,that's big super pit capacity,with slightly lesser economics sure,but grades growing as we speak.Others are throwing .6 or .9g/ton thru large plants and we're starting at 1.4g/ton with CRE and a lot more at FML sites.
    That's in essence big pit production x 2 at 2g/ton,with less site risk(4 production sites)less mill risk(2 soon to be 3 i guess)less weather disturbance/washout risk(360km between 4 sites)

    $15m? profit this quarter means $5m in FML tax and cash leaving the company.Even at $1.8m exploration/month,it's coming in faster than FML can expend it in expenses,to keep that taxable profit LOW.
    A nice big tax loss,a producing or dormant mill and some tenements for next to NIX waiting for the FML WAY for say half the cash value of the tax losses,wouldn't be bad,now would it.Even better,if its running at half capacity,producing 50koz/yr or more.

    When and if the stone cracks i'm sure all will be revealed,rather quickly.

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