NM Presentation at Mines and Money London DGR, page-5

Hi BM

I don't see the takeover of SOLG as mythical. It is not 100% certain but highly probable. There is much historical precedence for it happening when reviewing similar scenarios to SOLG.  A good number of analysts and brokers are predicting a takeover.  If SOLG reaches 1 pound the resulting treasury of 363 mill removes the need for DGR to borrow and being forced into dilutive share issues.  

I am not concerned with the SOLG option issues at 60p as I believe they are sufficiently above the current price to not disadvantage existing SOLG holders and indirectly DGR holders.  They are a big incentive for staff to work hard and remain with SOLG.  I assume that either staff will be assisted to exercise options or the options can be paid for on the date the takeover monies arrive.

    I agree a sale of Alpala/Cascabel for 2-4  billion would also be a great result.  SOLG seems confident there are several more Alpalas among their 72 concessions.

    

I favour an option issue to non management DGR shareholders who have held for a number of years. These so called loyalty options were employed by a NZ power company I held shares in. I have put the proposal to Karl who said it was worthy of consideration. 

    NM is very excited by the Uganda project which is much bigger than I first realized. This could become  another daughter company.  NM still insists that AJQ will become another Arrow Energy which became a multi billion dollar company.

    I am up over 100% since I first invested 8 years ago. I added to my holding during 2018 as the investment proposition is the most derisked and discounted it has been since I first invested.  I do see 0.12 as extraordinary value.  

    There are valid criticisms to be made about DGR as there are with all of my shareholdings but I have found remaining clinical has resulted in my best investment returns.