cowardy management lim, page-2

Jojo,

You mean we get to vote without an AGM?

I feel they weren"t counting on the sharp upward march of other nickel stocks since the Xtrata "offer".

I was looking at the table in the annual report on table 1, and thinking about a 2007 cashflow in the vicinity of USD 1 bn, and NPAT similiar vs 5 mm and 2 mm respectively for 2002. Thinking these guys just can't handle the success, the numbers are frightening them, screwed all their plans on how to beg money from the banks for Activox. In short they don't know what to do with the cash mountain, so they want out. They are scared to face shareholders without knowing what they are going to do with all the cash.

They can't delay the QR, which I am expecting to be close to A$250 mm NPAT, or just on $1 per share. This puts them on an annualised PE of 5 if I am correct. This combined with the cash pile on their balance sheet, how can the bid succeed?

I am thinking we will end up with Xtrata as major shareholder, and effectively with management control. Then they'd have another go down the track, probably after deferring expansion plans, to boost the value of their other nickel, and to get the rest of LIM as cheap as possible latter.

EL