Ann: Update on change of control process , page-32

Since the initial failure 8 months ago any company that is associated with copper production or trading has or has had the opportunity to run their eye over the data room of DML and yet the equity value is $26 million and an EV of circa $162 million.

DML has a high Cu equivalent that should make it a significantly profitable mine, with high reserves. However, the negative (other than the obvious C1 cash costs) is its high strip ratio.

There are explorers that would dream of resources and reserves of DML and yet the company is loss making because of high C1 cash costs well in excess of the Feasibility Studies.

So:
- why can't DML get close to their original forecast since the strip ratio is within tolerance of the feasibility studies;
- why is there lack of interest in the company, with those who have crawled over the company allowing it to fall to current levels. If there is interest in DML, and it is considered economically viable, then why is there no competitive tension to take out the company. All that appears to be occurring is that parties take up a parcel of shares and then move on.

Anyone who thinks that the share price is being manipulated would also have to ask why is there manipulation at these levels when there is significant risk that another party could take out the company. This would be a high risk game at these levels.

Yes, for every sell there is a buy, but I do not see change in substantial shareholder notices being released. So assuming that DML is watching the share trading, anyone that looks to be accumulating and deliberately flaunting the Corporations Act should be being approached by the company to pressure them to comply, with the threat if being reported to the ASIC. This would at least show to the market that there is support for the company. For example, BRU finally forced Macquarie to disclose its trading activity when it was trading above 5% and had movements of more than 1% but was not disclosing it.

And yet nothing.

Actually, worse than nothing. The directors have also abandoned their support for the company by selling their shares at these low levels.

So:

- the company has high resource levels that exceed levels of a high proportion of existing producers;
- the company is in production, with, IMO, capex being able to cover a fair chunk of the existing debt;
- the company could potentially carve off, or farm out tenements to reduce the debt burden;
- the company should be able to enter into an off take agreement, but has not;
- every man and his dog that may have had an interest in the company has, or would have had, the opportunity to crawl over the company;
- the EV of the company has gone from one of the most expensive Cu explorers to the cheapest Cu producers listed on the ASX in the last 12 months;
- there is no support for the company, be it internal or external.

What is management not telling shareholders?