merger, page-29

siempre33,

Reality check!

3 years ago stocks were bid up to unrealistic levels by a bubble in nickel prices that was met by large-scale DSO - Rusina included. But the nickel price is now capped by all the pent-up availability of DSO supply and at current nickel prices the margins on DSO are minimal. Perhaps RML can generate a bit of cash-flow from shipping 2% ore but we have to face the changed reality that the future for RML (Acoje) is from the added-value of treating the ore to produce MHP for China - NOT from future DSO.

But to achieve MHP production RML must raise US$498m of CAPEX and first production would still be around 3 years away.

Both RML and ENK are at far lower share prices than they were 3 years ago, so the share swop is at an advantageous level into ENK shares. But ENK does have a project at Caldag that is ready for construction and has a financing agreement in place, even though it has yet to be delivered on by the Chinese. RML and ENK are close collaborators over the HL technology and ENK already has a significant ownership position in Acoje and is highly likely to earn it's full 40% in Acoje whether the merger is successful or not.

We have to face the reality of where we are now and what is the best way forward for the company. Opinions will vary and everyone will get their chance to vote on the merger.

I believe that RML holders are more likely to achieve a better return by combining with ENK to make a far more substantial company with earlier cash-flows than by trying to go it alone with only 40% ownership of their most advanced project.
CPDLC