I think it's good to have employees having a stake in the...

I think it's good to have employees having a stake in the company, but having a minimum regular dividend kinda works against that. Instead of it being a motivation, it may become a free dividends machine for them regardless of whether they work hard or not.

I understand the reasoning behind their annual regular dividends for their partners since they haven't gotten anything in the past, but it doesn't make sense from a business sense. The company can be losing money and they are still forced to pay a dividend.

There is also a minimum annual dividend set at US$10,000 per 1% interest in MSR aimed at ensuring the flow of regular dividends, or equity equivalent benefits, to the respective B-BBEE participants.

Is it also paid to MRCR as well, or only B-BBEE is guaranteed the annual regular dividends? Holding 69% means min $690k annually if MRCR also gets it. But that's only to MRCR, and may not be paid to MRC shareholders, if they think that money is required to put back into capex. So while money is being paid out as dividends to all stakeholders, shareholders may not get anything unless MRC decides to pass that on to us.

Having said all that though, maybe it will be ok, since with the 80% withholding, they are gona only have US$62k outflows annually. Not a huge amount. Shouldn't kill the company's cashflows.