Ann: Chair's Address to Shareholders, page-51

Worth considering the hostile takeover prospects for DTR now that the SP is at these levels. What would their chances be? The free float of shares is probably no more than a third of the stock now, management own around 40% and there’s perhaps another 25% in fresh hands with recent capital raisings and players who are new to this year’s top twenty. Those parties are patient and won’t sell should an opportunistic party put (say) a one cent offer on the table. They are all (myself included) looking for a lot more upside here than that. So in my view they’d be limited to picking up no more than 25% of the stock at this point. The real risk therefore is probably a play from management with a few friendly associates for a privatisation of some kind. That would probably cost them one cent a share also. Why wouldn’t they just continue the current plan of further capital raisings, underwriting it themselves, taking up their entitlement and mopping up all the unsubscribed shares? Instead of paying a premium, you get them at a discount. Seems the logical path to me.

Yes, we’re all shocked at the SP down at these levels but DTR is just one of many stocks in the mining sector that seemingly just can’t turn around a falling SP, no matter what they try. A completely polarised market with momentum as the main driver. Why is CBA at $160? No other reason than momentum (voting). As Buffet famously says, in the short term the market is a voting machine, in the longer term it’s a weighing machine. Hold your nerve.