had a quick read of dls' annual report:- signficant write down...

had a quick read of dls' annual report:
- signficant write down in exploration expenditure... they've been drilling and found nothing
- they've got little debt (which is good - not trying to pull a sanyam... ie. buy another company for its cash to facilitate its borrowings).
- their operating cash flows are positive. Their investing cash flows are negative (which outweigh the operating activities). It appears that the exporation expenditure has been taken to the Investing line item, rather than Operating. So, on a consolidated basis of these line items, they are cash flow negative.
- With the ability to raise cash off the sharemarket now restricted, and their current cash of 12mill, and consolidated operating / investing cash flow of roughly - 7.5 mill, they are probably worried about running out of cash in the next 1.5 years
- their audit reports are signed by a nobody (what is a DFK Richard Hill? - enter Bernie Madoff)

The issue is that their offer is waaaaaay below what a number of substantial shareholders would be willing to part with (@ maximum of 12c a share, with 8c attributable to cash, who would want to sell?).
Most people buy exploration companies not to hold cash. (If you want cash, take it out of the sharemarket and put in beneath your mattresses). The investment is that they believe is that "there's gold in dem dar hills", or in TDO's case, black gold in dem dar under the ocean floor.

My position is to wade out the offer until something better comes along - I'm think something to do with cash rather than script. And more like 25 - 30 cents a share... none of this 12 cent lowballing