Ann: AIC Mines and Demetallica Agree to Combine, page-10

Greetings Holders!

I have accepted A1M's takeover offer for DRM and therefore transfer my affections.

Over at DRM, the holdings of Sandfire and OZ Minerals were today released from restrictions due to the takeover. Both will accept A1M's offer.

OZL is in takeover from BHP, who will have little interest in A1M. Expect them to sell out at a favourable moment.

SFR's position is different. I hold SFR and have been prattling on about its need for a third Cu operation to balance its fully mature Spanish mine and Botswana mine under construction.

A1M may well fit the bill - an operating mine with significant development potential (to 25,000tpa Cu) and a useful exploration portfolio to play with.

SFR holds 9.31% of DRM. Back of envelope, if DRM is 21% of the enlarged A1M, SFR will hold about 2% of A1M. Not a springboard, but a useful start. This has to be an option under consideration.

Anyway, given the frantic positioning ahead of the coming Cu deficit, A1M has to be considered a takeover target, hopefully at a tasty premium to the current trading price.

Ash