But there are some other considerations.
First thing, I totally understand and share the notion that in the stock market you have to put your own interests first. Sometimes they coincide with the interests of management and BoDs ,sometimes they don't. Pretty often unscrupulous CEOs/presidents/BoDs sell and screw up shareholders big time proclaiming that the deals/mergers, etc., are done in the best interests of a common guy while they are pure rip off. I don't see anything wrong in the desire of any company shareholders to maximize the return on investment. Different thing when someone is trying to maximize own profits by tricking and misleading others. Can understand but don't share this approach neither appreciate it. There's enough institutional manipulators out there so when retail investor's trying to do the same it just stinks. Second thing. I wasn't too excited about the deal and I'm even less excited now. I voted "yes" but I wouldn't mind if the deal will fall through. I'm not going to change my vote in the remaining days. I think NSU management did a great job, they looked for several years to get something worth buying. But I'm skeptical because for years NSU, since it started paying dividends, it was a great investment. Up and down, 10-20% in and same out. Some capital gains, some dividend. If the deal goes through and we end up with 300M shares, what will happen to the dividend? Management says it will stay. But how big? same US$0.16? It already takes US$32M off balance sheet per annum (goes to our pockets and I like it). For 300M shares it would be $48. And that Timok thing will not bring money any time soon, hopefully, in 2-3 years. With low commodity prices even current dividend on 200M shares is possible mostly due to previous profits on gold. I want the dividend to stay the way it is and I have doubts the company can sustain it with this new development. More shares, much more expenses on both, own projects (Asheli and others) and this new thing, which will require a lot, $300-400M at least. The company may overstretch itself. I'm not saying that this transaction is a bad idea, but I'm a conservative guy. It's a risk, as I see it. I'd feel better if we didn't get in this , especially taking into account the stance of many RMC shareholders. I'd say, if they don't want it this way let them hunt/wait for a better offer. I don't care, good luck to them. If they find someone paying $12-15/share, as they want, Godspeed! May be these Chinese guys will give them all the money they need to bring the project to the production. For free. By the way, there was one of the posts there (RMC board), stating as a red flag that NSU has no experience in the underground mining. So funny. Probably not. But which of those two Chinese dissident shareholders have an experience in MINING at all? Anyway. Seems like Jing Bao and XGC have enough share count to undermine the deal with the support of the opinionated mood on RMC board. What really my concern is that's what will happen to our sp if the deal won't go. I hope NSU shareholders will vote FOR so if it falls through RMC will pay $20M break up fee, not NSU. We will need it. NSU spent ~$114M on 12M+ shares of RMC at a never seen price of $9.40. If Chinese guys will proceed , as they say now, with the share offering at $8 those $20M (minus expenses for this whole ordeal, legal, consulting, time spent by management, etc.) that will bring the cost of shares bought by NSU close to this number. $44M loan is repayable, I don't see problems here even though it's unsecured. Just don't want to see NSU get stuck with these 12M+shares of RMC bought at $9.40 and being 99% sure they will tank if the deal won't go through. Even those $8 Chinese bucks may look like a dream. At least for some time. But what the heck! RMC guys think their shares worth $12-$15. May be NSU will get some appreciation on it's investment? Anyway, to be honest , with all my reluctance towards this deal I accepted it but I didn't expect such kind of a road bump and that's why didn't study the whole thing thoroughly. Have to catch up with some materials, starting with the proposed deal between Freeport and Lundin. Any comments are appreciated. Gl.