Ann: Update on Legal Matter, page-49

What we have had over the past few weeks is a normal see-saw movement of the market forces at play. Of course some of it was exacerbated by a few people calling the upside based on the theory that legal action and a new partnership arrangement will sort the company out. That saw a rise in the number of punters willing to take a risk and consequently saw an upwards price movement. On the day of the expected announcement (people forgetting that KSA does not adhere to ASX jurisdiction), what we got was selling because of no news. Added to this was the concept that the company may have lost the appeal because of the delay in reporting, and then finally further selling because of an honest company announcement (of which they all are) which stated things take time.

The uprampers and those betting on huge market capital increases by the end of Feb have, for all intensive purposes, no idea of Middle Eastern business practice and as such, made preposterous calls in the first instance. The shifting sands of Arabia, which often romanticizes the iconic dunes we all see in pictures, has also been described of the people and politics, where constant shifting of ideals, objectives and practices, make work ethics and standards very difficult to judge, let alone understand.

AUQs projects are both sound, and are financially attractive to the respective governments of KSA and Oman. The issue to be respected here is that this is not Australia, and as such punters need to learn that we have to play by other peoples rules for a change. Those not wanting to do this can take their bat and ball and head off to another place of course. But from what I understand of the Middle East, and YES I have worked there for some years, the issues will be resolved and the projects will go ahead.

I have absolutely no doubt that Omani projects will be a cash cow for the company whether they sell it outright, sell part of it, or develop it. Projects in Oman are not easy to get without Arabic partners and they take time to source and get the paperwork sorted. One of the main reasons is the Omani traditions of not documenting ownership as we do in Australia, and as such there are many legal issues to get through. AUQ are ahead of the game in this respect in Oman, and Omani people, as I stated in an earlier thread, are very decent people to work with. I have been to Oman at least a dozen times between 2008 and 2010, and have never once had an issue.

As for the KSA project, I think many of us hope that manajem will bow out and the mining lease will be handed over to another party. While that is an excellent scenario, I daresay, manajem will be exploring all avenues, connections and alternatives prior to that happening. I do think it will happen though and for that reason, I think that longer term holders will be rewarded. I for one, would not put a date on the expected changes, and like gosouth has reported many times, the halls of DMMR have many people with a story to tell.

A volatile investment to say the least, which could bring tears either way it goes. Do the research, talk to those at the coalface and then see if its worth the wait.