2012, page-37

Hi Samfiodiving,

I think you’ve misunderstood the nature of my posts and you might be surprised to see we share the same overall sentiment on this matter.

A couple of things I want to make perfectly clear in relation to your posts (and I’m pleased you at least corrected some of your oversights).

Firstly I’m not a fan of Wood, Infiniti or LG and their offer and most of my posts would indicate that. I have no intention of holding shares on the SGX and just want to time my exit, just like a lot of current holders, including you. Whether that’s 1 week, 1 month or 1 year, away we’ll have to wait and see.

Secondly I’ve been a long term holder and think I have a reasonable handle on all this grubby little play since its been unfolding.

Finally, Wood hasn’t sold yet, he has only agreed to sell assuming there is no superior proposal and LG can meet all of the conditions of the offer – to my mind that’s one of the keys. Let me be clear I’m following that strategy, it just happens to be the same as Wood’s, so I’ll hold whilst he holds. That’s all I’m saying and there is definitely no ‘harmony’ on my behalf. I may continue to hold even if Wood sells out to LG.

The difference is if I assign my shares to LG now it’s much harder for me to get them back unless the LG offer lapses. So I don’t want to be in limbo and I’ll sell on the ASX if/when the time is right.

Btw - Section 7.1b of the Target Statement makes it clear that Wood, Oliver & Flavel haven’t sold yet.

The one thing you’re right about is Wood with 63m mostly free shares, can probably afford to offload into LG and not be too fussed, unlike us.

As for the recent volume and interest – who knows? I’m honest enough to say I’m not sure what’s behind it. To my mind Kookaburra gave 4 or 5 very plausible options yesterday as to what might be happening and right now I really don’t care what drives the volume and price as long as it trends up. It also could well be traders buying @ 1.3/1.4 selling @ 1.6 and moving on, we’ll just have to wait and see. There could be a lot of that over the next month.

At worst even if the LG offer fails and there are no other offers and we end up with a CR like the Target statement suggests then they’ll need to find a way to increase the price prior to CR, otherwise it could be all over. For a CR they could have strong news flow in the pipeline – anything like more test results, full commercial production, JV or sell off of manganese resource or a new cornerstone investor etc in order to offset the dilutionary effect of any CR.

Btw - I also think KendalW made a pretty good observation with his recent post.

I trust that clears a few things up, whilst we wait for things to unfold.