re: Ann: DIO: RMS: Ramelius Extends Offer for... Probably more to do with logistics around the next extension. May be harder for them to do an extension around 2 Jan if people are travelling, lawyer offices closed, etc.
21 December means they can then extend for another month before they go for a Christmas break.
They only picked up 4% in the last extension, so no doubt the acceptances are decreasing.
What is surprising is (per the DIO accounts lodged on 27 November, DIO still had 3,730 shareholders who had not accepted the offer. It will be hard to get to a lot of these guys.
The results from processing will be seen to be highly positive for DIO shareholders as there is always a question mark over underground processing of high grade ore as it is usually inconsistent.
I think RMS will need to do a heavy marketing campaign to get more acceptances for another c.15m shares to get to the same level as AVO. Then it gets interesting.
Comparing the performance of RMS and AVO share prices, there is no doubt that people have been better off with the RMS offer.
The abitrage only looks small at a couple of percent, but if you can do it with volume it is an exceptional return on an annualised % basis. Hedge funds often do this as they can generate 1-2% in a week or so and keep doing it. Now that RMS volumes have increased substantially it makes this a bit easier.
Cheers
Marv
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