Phil, I think I now understand what I do not understand.
I hold shares in MGR,
and MGR has presently a 49% interest in Bumbat Mill,
another independent company, MAC, holds 51% in Bumbat Mill.
What I was not understanding was a simply business fact.
The value of a share of MGR has built in it the speculation value
of a 49% part of the Bumbat Mill.
If MGR got the remaining 51%, and speculation of its [Bumbat Mill]
future value was to remain at the present low valuation, then a
share of MGR will not increase in value.
But if the price of gold increases, then the value of MGR will be
higher with 100%, rather than 49%, of the Bumbat Mill.
So I forgot, presently we share any profits with MAC.
Its hard for me to identify to myself that which I do not know that
I do not know. Easier to know that one does not understand, and its
no problem for me to know when I'am wrong.
Thanks
Doug |
