question, page-2

Mav,

1. Controlling KAH means controlling 40% of EXT, yes. 40% alone aint gunna cut it though as the close vote of Bob Buchan showed us. Close vote and since then many options exercised and many shares bought. Voting would be even closer today.

Is KAH a better buy? I have copied/pasted below a post by Marben of ADVFN which answers your question, the answer is probably no.

2. RIO cannot gain control of a board and then force that board to perform acts in the best interests of shareholders of another company, the board must act in the best interests of the company they are respresenting. Aside from that, no one can force you to sell unless they exceed ownership of 90% of the shares. Just say "NO" if you are unhappy about a price being offered. NO WAIT, I take that back, just say "NO THANKYOU" (my mother may be reading this).

Here is the post by Marben which is at the usual high standard, great to have this bloke on board.



marben100 - 18 Feb'09 - 09:20 - 1478 of 1494

...but fordtin - you can discount the Niger assets, the mine donny's referring to is Henkries in South Africa, which Stalker is quite excited about.

Nevertheless, what troubles me (and why I'm out of URU now & investing in EXT instead) is that the value of EXT shares per KAH share is only 45.3p; translating that through to URU, the value of EXT shares per URU is 11.3p - so at the current sp you're paying 4-5p for URU's other assets. Maybe that's fair, maybe not - but ISTM that you'll get more "bang for your buck" when the end-game in EXT is reached by holding EXT than any of the others.

E.G. let's suppose EXT eventually goes for A$8. That's roughly a 4-bag from the current EXT price. The value of KAH's EXT shares would then be 167p/KAH share, total NTAV 175p - less than a 3-bag. Similarly URU's NTAV would be 45p, again less than a 3-bag.

URU was a "geared play" when it traded below 7p - it isn't any more and both KAH and URU do present risks of possible dilution, if they decide to raise funds & buy more EXT.

Do check my calculations for errors!

Regards,

Mark