http://www.smh.com.au/business/piper-must-be-paid-for-some-crazy-...

http://www.smh.com.au/business/piper-must-be-paid-for-some-crazy-forays-20130117-2cwk3.html

An extract from the above

"It is understood that after learning that management had made some serious errors of judgment in the purchase of the Riversdale business in Mozambique, the board finally decided to make a few hard decisions in relation to management. Besides replacing Albanese, it has also replaced the head of Riversdale.
The coal reserves and resources at Riversdale have turned out to be of lesser quality and quantity than assumed at the time of the acquisition in 2011. Worse still, Rio found out that it doesn't have enough resources in reserve to justify building railway infrastructure, hence the massive write-down."

I have said it previously, but after the RIO M&A debacle, it is worth saying again. OZL has only one bite at the M&A cherry, getting it wrong will be an absolute disaster for the company, and if you think the sp is depressed now, it is nothing to where it will be if a poor M&A occurs. RXM is potentially a good buy. Waiting for a reserve definition will be important to limit the downside. Paying a premium is better than buying a dud.

HT1