G'day Peppie, you're beginning to resemble the black knight in...

G'day Peppie, you're beginning to resemble the black knight in Monty Python. Of course the buyer will do a study, that's not only natural but required, and of course they'll want to use equipment made in China, it'll be a hell of a lot cheaper anyway, and everybody gets a fee on the finance, especially brokers and accountants and yes they'll want shares, I've predicted a takeover offer long ago, I may be wrong but I think it's odds on. Beers says 7.2c/s so even if it's half of that I'd suggest it's got to be a screamingly opportune buy.

Diatreme Resources (DRX)

Page 9 See Page 11 for Disclaimer and Disclosures 1 February 2016
Beer & Co’s risked, base case valuation of DRX is 7c/share
Figure 17 : Financing development of Cyclone 31‐Jan‐16 risk : 100% Product per share Cyclone 65 % $ 66m $ 43m 4.8 c 5.0 c franking credits 40 % $ 17m $ 7m 0.8 c 0.8 c Cape Bedford nom $ 2m $ 2m 0.2 c 0.2 c Tick Hill nom $ 4m $ 4m 0.5 c 0.5 c Corporate 100 % ($24m) ($24m) (2.7c) (2.7c) Exploration 80 % $ 0m $ 0m 0.0 c 0.0 c Asset Sales 90 % $ 35m $ 31m 3.5 c 3.2 c Cash to be raised 90 % $ 1m $ 1m 0.1 c 0.1 c Cash 100 % ($1m) ($1m) (0.1c) 0.1 c TOTAL $ 101m $ 64m 7.2 c 7.2 c Shares on issue 809.7m FPO shares 56.6m options 75m Issued later 0.0m ex'd discount rate = 12.0 % 31‐Dec‐15 Source : Beer & Co estimates