Not sure why people actually blame Cathay as the bad guy here. Cathay offered a cash offer which management turned down because they thought they were worth more. There were many shareholders that echoed this sentiment as well. I remember that Cathay wanted to do more due diligence and asked a few questions about the orebody. This was seen as 'of the Chinese playing game'. Well have a look at the latest OPEX. Its over $4 per lb. Cathay was actually correct in questioning DML.
Guess what ... it turned out to be the wrong move. Hindsight is a wonderful thing. However the blame here is with Brad Sampson and the other directors of DML. Now two of these director muts have "resigned".
Now DML cannot even refinance. It already breached its banking covenants and the banks has allowed DML more time.
People who seem to think "this is the best asset and therefore we cannot be this low in share price" ... the question now is can DML be solvent long enough before it turns profitable. It not only needs to be profitable but handle its debt obligations as well.
Now that Cathay gave a "non-binding" offer of 35-40c .... well guess what the Chinese would not even have the opportunity to do this if management had not got the company to its knees.
I am just afraid that the next 6 months will determine DML fate. There is possibility that the fate may not be a good one. Anyone thinks "oh I am a shorter" ... you cannot even short this stock.
DML Price at posting:
20.0¢ Sentiment: None Disclosure: Not Held
