Ann: MRC enters exclusive non-binding MOU with Superior Graphite, page-14

This is my watchlist stock but quickly looking at the report it looks like one sided partnership.

The document talk about MRC investing 20million Euro but it doesn't say how much will be invested by the other party? if the other party simply selling their asset for 50% ownership basis then what is the value of their asset or revenue currently they have on that asset that will be transferred to MRC JV?

superior graphite has three factory across world and they are only selling the one in norway and restricting MRC JV to supply to china which basically IMO might be biggest purchaser of this product so why would MRC agree to invest 20 million when they can't sell product to china?

it would be better to invest this money in Australia at higher cost but keeping doors open to selling it to China which IMO is biggest purchaser of this product and also allow other mining companies to use their MRC plant to purify their products at cost.. to have additional revenue.

neither the agreement nor presentation clearly shows in term of dollar figures what both partner invest into this joint venture and what revenue they will get out of existing operation and future operations... there is no evidence of pay back period /forecast revenue from current superior graphite operations... so it is easy to take it with suspicious by those who sold of yesterday big time... IMO. The document also doesn't show cost benefit of doing this partnership against original plan MRC has... IMO.


IMO this seems wrong call or at least i can't read anything in the announcement that shows benefit to MRC shareholders.. except some wording which says "we will benefit" ... IMO...

on another note, unfortunately 3 out of 4 member of the board including chairman is either accountant or lawyer... another mining company with board without geologist or mining experienced board but they do have 1 board member is mining engineer by qualification.