your opinion please im ignorant, and cant justify researching for and against the word 'minerals' getz my attention
Was tipped by D. Evans of Gold Nerds on Peter Schiff show last week, from 28:00 [youtube]http://www.youtube.com/watch?v=LOaeWyk_gsE[/youtube]
I hold FML, and it is my gold mining stock for 2012. Whether this proves correct or not is another thing.
looks good but i am just wondering about the impact of the carbon tax on these smaller scale producers - how much will the carbon tax increase their gold refining and forging costs , remember the tax increases for 3 years before moving to a trading scheme.Consider alot of them already run on slim margins.
Put in 5,500 last week at .037 and had a good run so far.Up 0.002 again today on very high volume of 32 million.I really think this one is on the upswing now. Source:
Good. I hope so. FML is my only gold stock, and I am a touch in the red. A little bit of up will put me back at evens.
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01334961 FOCUS MINERALS TO RAISE $227.5M THROUGH PLACEMENT TO SHANDONG GOLD Investment by Shandong Gold to provide Focus with a robust balance sheet and the backing and expertise of one of China's three largest gold producers Placement proceeds to support Focus' goal of becoming a +500,000oz gold producer Directors of Focus unanimously recommend shareholders support Placement to Shandong Gold in the absence of a superior proposal and subject to an independent expert opining that the terms of the Placement are reasonable Placement price of 5 cents per share represents a premium of: o 13.6% to the last closing price of 4.4 cents per share o 28% to the 60 day VWAP of 3.9 cents per share Shandong Gold will own 51% of Focus on a fully diluted basis
Well the reason i put fiat currency into gold shares in the first place was to diversify away from fiat currencies so personally i am worried about a company of this size sitting on a potential nest egg of 227 million considering how precarious the fiat system is at this time.Looks like others agree with me as the price got hit hard today.Still all is not lost as the shareholders still have to approve the deal.
The below is a post on Hotcopper from bazza d2 on the FML thread........absolutely spot on. Words almost fail me with this BOD (unusual for me). There is a world of difference between aggressively expanding into a rising gold market,and hurtling like headless chickens trying to run before you can walk,with a total disregard for who or what is going to pay for it. The whole crux of the excersise was supposed to be based on the belief that the pog is going to rise to levels never seen before,and from what I can see going on in the world out there,the chances of that happening are not only a given, but iminent.So surely even the most elementary business brain could comprehend that the way forward would be steady and considered exploration with the main focus on gold production from what we know we have,keeping an eye on finances until the gold bubble explodes, giving extra much needed revenue to fund further more agressive exploration thus keeping the ball rolling without overstretching. What the BOD have done instead, is allowed their ridiculously ego driven desire to become known as one of the big players to override all remnants of common sense. To state that the only POTENTIAL negative aspect of this debacle is selling 51% of the company to someone else at this particular stage and with the pog right on the cusp of moving inexorably upwards in the next few months is under egging the pudding and I am desperately trying to keep this polite. It is NOT a potential negative,it is the most ridiculous hair brained decision at 5cents possible,and HAS to be borne out of total desperation caused by equally hair brained and incompetent ego driven decisions at boardroom level involving the plan they had going forward on the ground. I really did think they may have learnt some valuable lessons after making such a pathetic mess of the CRE deal when they were in such a position of strength over a company totally on their knees and almost certainly prepared to accept just about any deal if they had been faced with a buyer who had even an elementary grasp of how to play hard ball. Instead we had respected posters on here saying with overbearing pomposity "ah yes but we don't want to be seen as the bully boys here,after all we have our reputation as an above board and respected company to think about"or some such similar waffle which bears no place whatsoever in the cut throat world of business and finance.You only have to watch the banks running the world to figure that one. So here we are. Almost certainly potless. So desperate to survive that we have to hand the whole mess over to the Chinese. Campbell Baird has told us constantly whilst puffing his chest out that we are soon to b e the fifth largest gold producer in Australia. Well I have news for you CB. Your not. The Chinese are, and how that sits comfortably with you or any other member of the board beggars belief!!
Sold out of this lemon , ended up down $1000 from my $12,200 investment.Could have been worse. Like the above poster quoted all they needed to do was be conservative with exploration and focus on production while the gold price increased.The share price would have gone above 5 cents within the next 2-3 weeks if they had not announced this dud deal.Very disappointed with the management on this one, very fishy all of this.