09/11/2004

Intention to float on the Alternative Investment Market (AIM) and appointment of new directors

Falkland Gold and Minerals Limited ("FGML"), an exploration company, announces that it intends to implement a placing and offer for subscription to raise up to 8m and to apply for the admission of its shares to trading on AIM.

FGML was incorporated in February 2004 and has begun an exploration programme for gold and other minerals in the Falkland Islands.
FGML holds the only licence to explore for gold and minerals, giving it exclusive exploration rights to substantially all of the onshore land mass of the Falkland Islands, covering approximately 12,000 km2.
The licence, currently valid to January 2007, will be extended by the Falkland Islands Government to July 2009 on admission to AIM.

The money raised will be used to undertake further stages of its exploration programme.


If its anything like FOGL it will be very oversubscribed

I'm assuming the present low in the underlying gold price may have as much to do with FGML's stagnant SP at 38.5 where it has been since New Year as anything else.

That and no news being no news and the usual theories about MM's luring stock out of bored punters' portfolios into their acquisitive hands. Do I detect the almost universal selling trades, yet the price holding steady, as a sign of MM's stock gathering.

With what seems to me genuinely interesting geological prospects, apart from the rather romantic history of Gondwanaland, and the wide predictions of gold price set to reach anywhere from $1,000 to 5,000 per tr oz by end of decade, there must come a day. I do have faith gold will be found in commercial quantities.

Of course, it is tempting to think of what else more short-term one could do with the money. Is it safe to sell out now for a month or three, and still find the price the same to come back in later? Knowing my timing, the answer is no.

Basically I see this as a protective holding against the US twin deficits coming home to roost as soon as everyone has seen through GW's cynically transparent budget proposals. Also, following the theory that the central banks have leant almost all their gold to ultimately the jewellery trade and can't have it back, the merest hint that they do wnat it back will lead to an inevitable sharp squeeze in the Gold price and thence a knee-jerk rteaction to gold stock SP's, alomst however fa away from production they are.

So I suppose I will just have to put up with lack of action. Anyoine else feel the same? Interested to hear your views.

SD

Stockdog,

Well I've sold out for now, for a number of reasons.

Firstly, the market cap is quite heavy for a company at such an early srage of exploration IMHO, and secondly, I had other stocks that I thought had a better chance of increasing in value in the near term.

This remains on the watchlist, and I hope they prove a commercially viable resource, I may well be back again when funds allow if the news merits it.

Good luck to all remaining holders.

got out long time ago at 38.5p had high hopes but never materilised not sure why
they are at this level seems a bit odd to me ????

RAB capital must be sitting on bug loss for this one but big profits on FOGL etc

I do feel a bit like Shane Warne - nearly the last man in and 270 runs to make.

Should have followed my own analysis from February above, but NOT discounted my luck with timing.

The last few days dive for the floor seems to have come out of nowhere - classic tree-shake before the end of year trading update next month. WTFDIK!

Gonna see if they lift a bit over the next few weeks and then cut my losses come what may - luckily never got too much stock on the IPO.

sd

up 61% today on no news and no massive volume ???????

Having talked to a couple of the Aussie geolgists that are doing the prospecting for FGML only a month ago,I think this stock is dead in the water. They are saying no chance and FGML have nearly compleated their work plan and are going to review whether it is worth continuing in the Falklands.
Why the share price has seen a big rise rise this week is anyones guess but not I think based on prospective good news reguards gold finds. SELL QUICK before they fold!