Ann: MCM Notice of Annual General Meeting/Proxy Form, page-13

Both TER and the original TER shareholders misunderstand why UNV was so successful. TER management tried to change things (and it ended up being for the worse) and TER shareholders are disappointed with the lower margins. TER management just seemed to think UNV management were stupid around why more of their production wasn't exported and are now finding out why UNV went the Domestic route. The whole purpose of the thermal assets was to eventually provide enough cashflow to develop the coking coal assets without any dilution.

This is why I think it makes sense for TER to get involved with Makhado. It short cuts the move towards HCC production and they could then potentially look to asset swap with MCM later down the line one of the producing thermal assets (probably NCC) for a stake in GSP. Provides TER with strong exposure to more HCC upside, and provides MCM more production in order to provide a base of cashflow to protect the share price, and also limit the dilution risk when developing Makhado Phase 2 and the GSP.

Personally think it would be a match made in heaven. I'm a much bigger hold in TER (from the UNV takeover) but hold shares in both and see significant upside in both if this were to happen.