Couldn't agree more with A777 & jhu in the separate post.
To those that watch daily price movements and treat it as an valuable information source representing what is fundamentally going on with the company, I feel for you. It will tell you very little in this market with so much macro noise.
To those that post the company is only worth the last traded price, or that today's price has any bearing on the takeover (ie. control) price, I disagree wholeheartedly - that might be the price at which you can buy 1,000, 100,000 or even 500,000 shares but if you think you will get >75% control of the company at that price, you need to freshen up on the holder base and their approach, as it simply will not happen. The insto holders recognise the current situation as a SECTOR wide and global MACRO issue, not DML specific. Of course it hurts DML dramatically, and there might be some take up from retail for an offer marginally north of current trading levels, but to think that someone will offer even 40c and that the 70%-80% insto block will jump undermines their modus operandi.
The best course for the company at this stage is to continue to deliver consistent production numbers mom, regain what market confidence they can, and then seek to renegotiate with the banks. A capital raise at this stage makes little sense. The cost issue may remain for a while, but once they can provide confidence around consistent production, they are in a better position to make material developments on costs; and at that time, perhaps a capital raise will make sense.
DML Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
