Hi Josh, T/O offer lapsed 7pm EST Feb 15th. Corps act gives 4 months- which means after close on 15th June. This allows two commissioning updates prior to the close of any possible DD period post 15/06. Any positive reports will obviously impact required offer price. Given the vast resources behind CF (1.5 billion employees?) I am still at a loss as to why they object to a rights issue? If they participate fully then their % will increase (assuming a proportion of SH's are unable, unwilling or forget to participate? Contingent of course on how or if it is underwritten..) When they T/O they will simply be buying their own money back!
IMO banks will approve financing if Mid May report is favourable (perhaps including a small CR to insto if bank demands it ?) IMO CF opposition to the CR was simply an attempt to snap off a revised bid prior to any refinancing. Ie. get the duck while it’s weak. The presence of another suitor (or I think a ‘material change’ in circumstances, eg solvency issues?) allows such a lower bid. I further speculate that we will see more game talk coming from CF questioning why DML board would stall DD, when in CF’s opinion, it would be best for their beloved fellow shareholders if they were allowed to make a low-ball bid for DML before the company can get its financing sorted and put out a couple of promising commissioning reports. Nice try CF, but the days of taking a conditional T/O offer at face value is long gone. From memory DML had to chomp through some low grade ore in March (hence unspectacular copper grades) hopefully they have gone through this and have moved on to juicier spots in the resource. CF, i am sure, are well aware of this ‘risk’
DML Price at posting:
34.0¢ Sentiment: Buy Disclosure: Held
