Posted elsewhere by knowledgeable investor
"A few comments as we await further updates from FRMA management. I find silence a hard period to remain positive as I tend to be paranoid, but agree that PR news that has no substance is of no value.
The second quarter SEC filing should be available this month [not sure if 15th or end of month]. However, based on the year end SEC filing don’t expect much worthwhile information will be reported for Second quarter.
Having said the above ,however, I would suggest that shareholders should be VERY thankful that management led by Mr Biscan have moved to diversify the company holdings from mineral resource mining to the two new divisions of Sicilian Sun Corp- food division and SmartPac Global Corp packaging products.
The collapse of mineral assets that is occurring would have destroyed FRMA’s valuation.. The following news release gives us an idea what major gold companies are experiencing. The smaller mining companies are experiencing even worse outcomes
Globe and Mail Reports that mining companies are pulling out all the stops for ways to strengthen their balance sheet. Goldcorp cut its dividend by 60 per cent and sold assets. Barrick Gold is selling mines to slash its debt by $3-billion. Kinross Gold is eyeing job cuts at its West African mine after killing plans to expand operations earlier this year. Goldcorp chief executive officer Chuck Jeannes says, "If we stay below $1,100 for a significant period of time, yeah, I think you will see mine closures and action in the industry, and maybe some consolidation and some companies throwing up the white flag." So far there has been scant consolidation. Gold mines are still operating, even if at a loss. Companies whose shares have been decimated refuse to throw in the towel. The decline in the sector is reminiscent of the late 1990s, when bullion plunged 40 per cent in two years, bankrupting miners and forcing the industry to suspend production and close mines. Agnico Eagle Mines CEO Sean Boyd says the current downturn is harder because there are fewer quality gold assets left in the world.
FRMA still has s survival future possible if we are successful in the rollout of the above mentioned two new projects. Hopefully revenue streams will be established to support higher share prices and possibly even the development of the mineral assets of FRMA when that sector recovers.
My last observation. Am very impressed with whoever is accumulating shares of FRMA over the last couple of months. Am NOT referring to the buying by individual investors, but I am sure there has been a persistent accumulation by one significant entity. I do not know who it is, but by following the use of one stock brokerage have detected their existence. They have been expert in buying a very significant holding within a minimal range that boggles my mind .ie the share price has not fluctuated significantly over this time.
