seven lessons learnt, page-197

Good post Hotrock (keep them coming mate), but I'm not sure if I fully agree with you.

You are saying that NMDC is coming into Legacy to get cheap ore at Legacy's expense. I don’t think that that is the case.

NMDC themselves produce ore to sell, so they are not a trader relying on the profit margin whacked on top of the ore when buying from a producer to on-sell to another trader in the chain or to the end user.

They are used to getting ore at cost, which is internationally priced. I think that they will buy from Legacy also at cost or market and perhaps with a discount, which is common for project funders or financiers.

How could they as a public listed company and also a government controlled entity possibly rip off another public listed company, especially when they will become their major shareholder?

Commonsense would tell us that after all the approvals required by their parliament for this first ever foreign investment for them, they will look at our Co basically as their other arm or a subsidiary.

All financials will have to show profit and not loss, by the time Legacy produces ore to sell!
They could even sell the ore to their existing clients and give that profit to Legacy, who will no longer need to rely on any traders (cutting out profiting by them) and selling the ore at end user prices, which is usually higher than market.

As for the deal going against our National interest, I think not.
If anything, it would work the other way round for Legacy, having secured NMDC, thereby guaranteeing off-take at safe prices and not bargain prices.

Who would want to openly cheat their own affiliated company and what for? Doesn't it defeat the whole purpose of expanding overseas with their growing surplus funds to create more wealth for NMDC and all their subsidiaries (JV’s) offshore?

Your analogy would also suggest that wherever else in the world NMDC is setting up their new affiliations (Russia, US and Africa), they are doing it with an intention to rip them off.
I doubt that very much.
If you burn one Co by screwing them to the ground the others will find out and NMDC will get a bad name.

I doubt that this is their goal or intention.
Who knows, maybe in few years time if they get very greedy but right from the beginning? I doubt it very much.

That’s only my opinion but I hope it will help to balance your view.