Ann: Lenders Update , page-9

Bubsmark,

Those are the words that I fear most "large scale recap".

When the short term debt is multiple folds of the company market capitalisation the outcome generally is not good. A recent example is Mirabela Nickel (MBN).

All the recent extensions indicate that DML is not in control and the creditors are negotiating its fate. They will not want to call in administrators (or only as a very last resort) since that will mean them taking a massive haircut.

Whether DML will go down the MBN path where the debt will convert to equity or DML can raise funds (which will be a massive dilutionary effect).

If the mine somehow miraculously goes into cash flow positive with enough margins to sustain the debt interest obligations as well, then DML will re-rate big time. In the last 15-18 months DML however has not been able to achieve this. If they can show this I will load up hard.

The market reflected in its share price is pricing in the worst outcome.