jumping ship on hms dau, page-6

Hi Kori,

I don't believe the fact that people did not vote means they are contemplating ORD's bid, they are merely waiting to see what happens.

DAU shares were extremely difficult to buy, it took me 3 trades to buy my first 10,000 shares in DAU, looking at the trades over the last year or so 99.5% of shares in DAU have ever been traded so it's reasonable to assume that the vast majority of shares are held by the original investors and NST who got the Barrick shares. Therefore the ORD bid would represent a huge loss to the vast majority of DAU shareholders. That's why i believe that most will wait and see what happens with the FIJV rather than accept the low offer T\O.

I am led to believe that it will need more than 51% to agree to the T\O for it to succeed. I am not certain so I can't really say for sure, just going on what i have been told. It may have to be a 50% majority.

The CEO has been made redundant and a new board has been brought in, the new board are not friends of a friend, apparently they are top men who have been highly recommended to Dampier. I can't see why you would bring in a top team and then meekly hand over the business to ORD. The board at DAU are clearly hoping that ORD do not meet the financial commitments of the FIJV and the business will return to Dampier. The recent actions of the new DAU board show that it is a completely different animal than the previous incumbents.

I didn't buy DAU shares for the SP, i bought them because I expected a good dividend, it should have been a nailed on good investment. The actions of the previous DAU board left me bewildered, only they can explain why they wasted a fortune on exploration that was needed for production, when they already knew there was plenty of yellow metal waiting to be dug out.

I only use the word if because I don't know the situation at ORD, you obviously know more about it than anyone else. If you are absolutely confident that ORD are in a position to bring the FIJV to production then ORD at 0.3 or 0.4 cents per share represent the best buy of the year. If the T\O fails and ORD can't meet the requirements of the FIJV then it represents the worst investment of the year.
Famine or feast.

Only time will tell, but the sooner both sets of shareholders actually see some production the better.