Mine wrangle knocks down DML share price

Chinese firm, Cathay Fortune Corporation (CFC) launched a P6.5 billion takeover bid of Discovery Metals late last year, which turned hostile when the Boseto Mine promoters spurned the 'low' offer. Since then, Discovery's share price traded up to $1.75 on 24 October 2012 before dropping to $1.52 on 22 January 2012 on the Australian Stock Exchange where the company has a primary listing.

On the Botswana Stock Exchange, the stock price has followed a similar pattern weakening from an average of P13.60 in mid October to around P12.30 this week. In a statement released this week, DML said it believes that the share price performance over this period primarily reflects uncertainty in the market about the bidder's preparedness to proceed with the offer rather than any deterioration in the macroeconomic environment or the fundamental value of DML.