Ann: MLX: Announces Scrip Bid for Aditya Birla Minerals Limited, page-33

Hi Guys,

A question was asked recently about why MLX wasn't performing as strongly as the other gold miners. This proposed transaction is an example why it hasn't. MLX is not a pure gold play and is now positioning itself as a diversified miner.

Personally I am invested for the large gold exposure, resource base and production growth. It was easy to ignore MLX's legacy tin and nickel assets as an adjunct to what appeared to be a primary focus on gold.

I have no interest in copper (given the macros) and if I wanted a diversified metals miner I have plenty of other options including S32.

The hostile takeover offer may well largely be mute as I doubt the majority shareholder (51%) will be receptive to a deal that they have previously turned a cold-shoulder to in private approaches - and what point is a 49% ownership to MLX?

Unfortunately MLX will languish behind it's peers within the gold sector based on this now disclosed strategy and whilst it may be seen as genius in the fullness of time I would anticipate a poor response from the market in the short term. I thought MLX has enough on it's plate in getting all of it's gold operations up to speed without further adding to the risk profile.

Cheers
John