I don't know definitively what the outcome will be but it is my...

I don't know definitively what the outcome will be but it is my opinion RMS will take DRM over - or to be more accurate make an attempt to (whether it will be successful or not is another matter - and personally I doubt they would be).

Seems DRM followers (and RMS follower) I know are pretty much evenly divided in their opinion about whether a TKO will eventuate.

In my view it's quite simple...unless RMS buy other resources that will provide a high grade feed, the substantial profitability potential of Mt Magnet will not be realised. That is, it will still turn a profit just not as good as it could be. I expect (and would hope) RMS realise that.

So while that might not mean DRM will be THE eventual target, I have to conclude that it must be in pole position given the 7% or so RMS now own. But of course, if the SP continues to go up it might just become too pricey for them regardless of the improved project economics that would eventuate.

So for me, if I am correct about RMS intention, its a win-win situation for RMS in terms of DRM current stake regardless of whether they take it over.

1. It gives them a foothold should DRM SP stay within their eventual bid range,

2. If DRM increases outside that range they make a VERY TIDY profit on their investment

And if its a win-win for RMS, then its a win-win for us shareholders. Under 1, we get a premium TKO offer that will provide support for the SP. Under 2, well that means we made a darn good investment.

Today I'll be closely watching both RMS (for an entry) and DRM (for a top up) should their prices fall significantly given POG drop last night. NST as well.

Cdchi1