RE:RE:Chinese State Miner Options It was Contrarian who pointed out he's not convinced the Chinese want to buy out the Company. At the time I thought that didn't make sense. But you never know. There is no law which states they must buy the Company. Maybe they're happy with the current arrangement. I find it hard to believe, but that is always a possibility.
With Western miners it's easy to understand the objective. They want to increase shareholder value. A state miner, however, is obligated to increase value for the state. China is the customer, not shareholders. It's very hard to read the situation, because four key officers and directors hold substantial option positions, five million in total. They stand to gain if share price improves.
Was the plan all along to stop at 40%? For all practical purposes, they already have control. Maybe that's good enough. Yet, state miners have always taken every opportunity to increase their position. That's why I assumed they would do the same in 2023. So depending on their objective, there are really two possible outcomes:
1) One or both Chinese miners buy control.
2) The Company goes into production and that's it. The Chinese would never sell their share to a Western miner. So no one buys the Company.
In my opinion, option 2 would be in the best interests of shareholders, but RF has always sold to a major in the past. That's what led me to assume the Chinese buyout.