answer to mak's letter to ucl shareolders

Buy equities to buy exposure to cash controlled by Drummond with no investor protection guarantee like you get in a bank? You've got to be kidding. Paying Drummond with a salary like he has to put my cash on deposit? Drummond has to be some sort of sick moron to recommend giving up UCL shares for cash exposure. Pay stock market commission and a bid offer spread to buy cash? How frigging sick is that?

Even if he were selling cash at a discount (I doubt he is), I would be wary (The bigger the discount the bigger the risk of fraud).

The revised offer has a monetary value below the 36 cent price MAK paid for UCL shares in a recent rights issue and furthermore, during the intervening period, the main driver of shareholder value, the phosphate price, has risen. Drummond is MEAN, IMO.

Drummond is arrogating to himself the right to determine the valuation date. He has no such right. I'll determine my investment time horizon myself. I expect to be compensated if I am not to be allowed to determine my investment time horizon, and GREATLY SO when the future value expectations vary as greatly as they do for UCL. The more volatile the future expectations (anything between 90% loser to 10 bagger?), the more the compensation needs to be. Options are more valuable if the underlying price is volatile. Iran could come right in the next 12 months and change the value of UCL's Iranian asset 10 fold (well within the realms of possibility given events playing out in the Middle East).

And of course the MAK consideration being offered is questionable when its value is dependent on tainted management with a reputation for hyperbole, mining the market (rather than resources), excessive optimism and diluting out the long term shareholders, as Drummond is doing now. Such a calculating, mean and opportunistic individual (and with such a disregard for his existing shareholders) is likely to have planned his exploitation of future news flow to assist him in winning this bid, IMO. I therefore expect the NMDC announcement to be favourable to MAK's share price in the next few weeks, but I won't be accepting MAK's offer even if the share price improves. A cash offer of a $1 for each UCL share will do, and not a cent less.