Ann: DRX:Conditional intention to make a takeover bid for MLM, page-26

I am a senior with no experience in share trading and took the advice of my financial adviser to invest in MLM. He was of the view that the recent approval to allow doubling of Cape Flattery's export approval to 3mtpa was "a gift from heaven" to MLM shareholders. His opinion was that increasing environmental concern about coastal disturbance and shipping movements within the Great Barrier Reef channel would work against any future applications wanting to substantially increase exports from Cape Flattery.

As I understand it with former MLM shareholders holding only one quarter of DRX, for our currently forecasted returns to be equivalent after a DRX take-over there would have to a fourfold increase in production and a fourfold increase in shipping movements.

Advice also is that just the approval process for a fourfold production increase (if ever approved) might well exceed my projected life span.

I am not across the financial claims given by DRX but suspect that their assumptions are drawn from the bottom drawer. Maybe someone with a financial background might comment on the likely world price movement of quality sand which I understand can only be upwards as supplies dwindle. As such I am advised that it is likely that the DRX offer grossly undervalues MLM and its future potential returns and must be rejected.

I will be eagerly looking forward to comments from other shareholders with a better understanding of the share market.