all very quiet on the sbl front, page-9

Colcom & DGC,
Well the monthly & quarterly up-dates are certainly holding our interest & show that the new brooms are doing their job.

Its the fuzzy present state of affairs that is puzzling, in that we have a likely profitable gold producer emerging as SBL, still with a woefully undervalued SP. S/H's have a pretty silent major S/H in LG, who may or may not ever embroil us in a compulsory take over. LG is bound by a set of rules in his Bidder's Statement that says no more LG shares will be issued after 19 Jan 2013. That sounds pretty vague, with LG able to not disclose it's intentions.

I think there are ASIC rules about how LG can get to 90%, & I don't think they include using CR's, especially under proposed relaxed rules for CR's. IMO, LG still need to buy quite a lot more on market. They don't seem to be bothering with that. Maybe the numbers on offer are too small. So its a quiet waiting game, possibly with LG holding the stronger hand. I'm tempted to average down, but the vague possibility of a future VWAP deal tends to scare me off.

Someone suggested a compulsory takeover could be based on a 6 months VWAP, but there's another puzzle in that. If the Bidders Statement rules (p72) stand until 19/1/13, then surely that's when LG should start counting for a 6 month VWAP. An old man's conjectures...Another puzzle is no directors buying at these silly prices. Even to buy in small lots & pay minmum high % fees is still a good deal - right? We saw 10M go through one day, but no ann said it was a director or Substantial. Maybe just someone braver than me !!

BTW, Mandi personally is still holding, but the group itself has become stymied, like all of us, I think. Apologies to Mandi & anyone else who went the extra mile to deliver us more profitably from our former board.
Cheers, Japes