Well at least it seem we agree that there were no funds needed for the Morningstar mine from the Chinese and you have not disputed my view as to why NG introduced them onto the MCO shareregister. It is clear to me that their introduction was entirely unnecessary unless you believed the conversion of the options would not take place last year.
Going over MCO's price history, it is clear to see that MCO traded consistently above 10 cents from February 2009, reaching over 30 cents by mid September 2009 and has never since been below that level. The options were to be exercise by end March 2010 so one would have thought that there was no need to fear they would not get the funds. In fact on 30 October 2009 MCO announced that the take up of the options had been underwritten at 10 cents per share by BBL Ltd. In which case MCO's funds were secure.
Then out of the blue MCO announced on 27 October 2009 that the Chinese would get 51% of a couple of the tenements for $4.5 m and buy a significant number of MCO shares. Hence it is clear that the Chinese investment was not needed at all unless there was some sort of backroom deal between BBY Limited and MCO to get the Chinese in and the options underwriting was a first instalment of this deal. If that is the case it really shows how little confidence NG had in shareholders or in the MCO share price holding up despite it having reached above 30 cents.
As regards the Chille investment, I have previously said that was necessary given the state of MCO's finances by late September 2010 and the expenditure on drilling to keep the Chinese happy (they pay in arrears, not in advance). One has to wonder how MCO would have performed, without the distractions of the Chinese, in meeting its key objective of getting Morningstar operational ASAP.
Yes I am an armchair critic, but I have some funds in MCO - heaps less than NG (and probably you) so I believe I have a right to comment. In fact I welcome all constructive comments whether people are shareholders or not (eg from plough). I am willing to learn, being but a humble economist/accountant type of investor.
There is a bit too much backslapping by MCO followers. We need to be more sceptical and analytical.
Anyway, here is hoping we finally get a gold pour and that we are on the way to that magic $1/share by end 2011.
loki
MCO Price at posting:
43.5¢ Sentiment: LT Buy Disclosure: Held
