Ann: $1.66 million Rights Issue Shortfall Placed, page-64

Interesting conversations. My contribution....

Firstly, ABO, please be gone from this discussion. These forums are for adults.

Bogart, you have something there on the company's position a couple of years ago. Coincidentally, it was when I first stumbled upon Dateline and it was the individuals, not the assets that piqued my interest initially. I'd been subscribing for many years to a newsletter by Marin Katusa, a young but very respected Canadian analyst who specialises in the resources sector. Marin was very bullish on MP Materials and the REE sector. Still is. Anyway Bogart, your suggestion that putting the company to the receiver and ultimately owning 100% of it would have certainly been a consideration. Owning 100% as a private company and total control would have been an attractive proposition. On the other hand there are considerable attractions to remaining a listed public company. They had the ability to purchase a fabulous asset for very little money (Colosseum), so how do we develop it and plot a path to riches.

Staying public gave them better options for raising money, attracting good staff, publicising their achievements and probably selling the venture in the end. Either the whole company or just the asset. But in the end I suspect that the two overwhelming positives for staying public were, 1. Using past tax losses, and. 2. Creating a legacy.

In last years Annual Report the accumulated losses were $48 million, not something you'd want to give away if possible. Preserving the entity that owns those losses can be tricky once receivers are appointed. If you liquidate, they're gone. Keep the company public, you carry them forward and just increase your shareholding over time to obtain a higher benefit from them.

Not everyone would get the legacy idea, I accept. Men with high achievement credentials in the business world start thinking about their life somewhat differently in their seventies. Once you've got the trophy home, investment grade properties, public profile from your career and all the other trinkets, you turn your mind to your legacy. Wealth in itself is not enough. I think this has some relevance here at Dateline. Have a look at the Directors credentials, all round. This is a group of heavy hitters with stellar career achievements behind them, mucking about in a company (now) worth tuppence hapenny by listed company standards. Yes, money is a motivation but it's not the only motivation, obviously.

Anyway, that's my view on why they didn't put the receivers in Bogart. Hard to believe the share price is back under the rights price. I won't be selling my DTR or my CBA. Still waiting for the Annual Report.