It appears that Goldman Sachs is not going to pay rent on the shares they have borrowed from Maquarie Bank Ltd, so what is in it for MBL? The only advantage for MBL I can see is that 'if' Goldman Sachs uses the shares to short NIC and then gets caught in a short squeeze, the squeeze will give MBL a better return than if they had held the shares and gone long. The MBL extra gain in that case would be a reflection of Goldman Sachs' extra loss. Perhaps the best thing that could happen now would be for NIC to announce a lucrative offtake agreement for the ENC nickel/cobalt precipitate, which will come onstream a few months from now. Then GS would probably hand the shares back to MBL who could watch the share price rise, along with the rest of us.
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