takeover of lundin mining, page-20

Hi Nelson,

I understand your frustration and think that most shareholders are sharing this with you, myself included.

First of all going back to management of Equinox a bunch of Aussies who build the bigges open cut copper mine in the middle of nowhere against all odds in the middel of Zambia.

Not something you can just brush aside as just anohter achievement and a lot of credit can go to management to have acomplised this.

So obvious they want to hold onto their dream and make Equinox a first class copper producer and being in the top ten producers along side Antofagasta Rio and the like.

We as Australian shareholders should applaud such a thing and hopefully support this move.

But that is ofcourse much easier if our own money was not involved in this move.

Looking at the move that Equinox has made first of all we would all think that this is done because Equinox wants to stay independed and not wants to be taken over by one of the majors.

But saying this, Equinox has stated that they have been looking at Lundin for quite a while and think that lundin will make a good fit.

So what should we make out of all this.

Imho if you are a trader and in Equinox, bad news.
If you are a shorterm investor in Equinox bad news.
If you are an investor in Equinox because of its low risk profile bad news.

But if you are in Equinox for the medium to longer term and believe in the Chines growth story and the Indian growth story and that the USA and the West will eventually rebound , then you could be on a real winner.

Because Equinox is not throwing all Equity towards this deal, instead it will take out a bridging loan.

Lundin will add straight away to the bottom line and will NOT be a burden but instead will help to repay the bridging loan from the very beginning.

SO we basically can close to double our copper production without having to spend money on mine development and exploration.
This alone should wake any investor up, and make it look at this deal again.

There is only one big NEGATIVE and that is the risk that metal prices will go down.
If this was going to happen then we can expect to see another version of the GFM where mining companies have to flock their mines for a pittance to keep the goldmanS.. happy and let them make more money then their eyes can look at.

So that is the REAL risk as otherwise this take over is a very sound, and imho smart way of building a very strong and large copper producer out of Equinox.

Shorterm there will be pain but this will eventually transform into some real upside for us holders imho.

Equinox have some real good and qualified management, and I say this because they have done an excellent job of getting the Lumwana mine into production against MANY odds.

Those who have been long enough with Equinox would know what I am trying to explain, and for those who are not go back and look wat the ASX announcements and you will get the picture.

We as Aussies and Aussie investors should look after these high calibre miners from our home ground and give them a chance imho.

Although I am hurting financiallly , I am prepared to go with them all the way, because I know that the ultimate outcome will be even bigger then most of us can right now appreciate.

And for those who may question my motives, I am just an ordinary investor just like you but one who would not hesitate to back a winning team.

good luck to all

jojo