FnF.I appreciated the local Chinese insight your provided, and I...

FnF.

I appreciated the local Chinese insight your provided, and I also have no doubts that Shandong can make FML shine for them back home. I just think it would shine brighter for them if they owned more of it and the shiny stuff and cash produced in the long run. What they do in the long run should depend on what is best for THEIR shareholders, it is certain that if they chose to they could use their controlling interest to their financial advantage, and take over FML cheaply if they desire to at a later date. That is why there is so much regulation about progressing a large holding to a controlling interest. What you and others argue is that they will choose not to do this. I find it hard to believe that they would not do this if it is in the best interests of their share holders. In addition to the cash benefit, it has been pointed out that there majority holders have a strategic interest in owning gold.

I do not think the FIRB would make much distinction going over 51%, control is control is the issue, not the value. FML is not a strategic resource in Australia. I think the 51% now is the direct test of this, to avoid problems later on, maybe the reason for 51% now rather than later. Regulations on controlling interest in a company limit their actions, and slow things down, but ultimately do not stop them taking over the company or influencing share price. Think how many comments written on HC about price manipulation from smaller sophisticated investors, and also a similar amount criticising management when share prices do not improve. A takeover does not mean loosing the Australian management or expertise in getting stuff out of the ground efficiently.

So really it comes down to our different opinions on what is better for Shandongs shareholders. Is it the prestige of making this a strong alliance to all parties benefit, or the prestige of maximising the financial gain and increasing gold reserves? This will always be a subjective decision, I have my opinion but I will not go against the market whatever I believe.