The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Good luck to you as well Schlemiel.
We all want the same thing and that same thing is to profit from our shareholding in SOLG.
good luck fella
Guess we will have to agree to disagree, however just a reminder, if we get a near surface target rich in copper and gold, then a start up is self financing.
Big boys will fund it or buyout solg all together imho
Debt finance will destroy the equity stake of SOLG shareholders. If you cannot see that then that's your loss.
Prove up Cascabel and sell to a major. then move onto another SOLG tenement and explore some more. That's the way forward. Not messing around with debt financed mining..it's a minefield
schlemiel, debt is only dilutive in the way you describe if the company defaults under the T&Cs of the loan agreements.
Otherwise, I agree with you that funding would be a big ask as well as very expensive. I also agree that we will be bought out before we get to that stage.
Wrong. Debt is dilutive. It's dilutive in the sense that it dilutes the equity component of a business. It transfers commercial leverage over to the creditor(s) of that business and leaves the management of that business in an inferior bargaining position. I don't believe Mather wants to submit control to a large creditor because believe me a large creditor will want Mather's soul in return for a large credit line to finance a £3bn investment in a mine in Ecuador and all the risk that this entails. This is is still Ecuador, not a Western nation. The cost of that debt will reflect the elevated risk of this operation
The Debt side of the equation, does not have to be financed by equity. Yes it will have a negative effect on the balance sheet, but this can be managed with a series of loans to bring this about. Also it will not only be Solgold financing this. I reiterate that we will have a clearer understanding shortly after the PEA.
debt is dilution in all but name. Debt replaces equity and equity is your claim to the company as a shareholder
Hello Schlemiel, while I agree their would be some dilution, it would not be much. Once we have the PEA, we will know broadly the cost and benefit sides of the equation. This is what is required for financing production via a series of loans. Unless we get a high take out offer, this is the way we will go. My opinion and also stated by Jason Ward and Nick Mather. Also why would Newcrest have come in at such a premium at the time. We need to wait for the PEA, then I believe Solgold will give us a clear direction of travel.
Hello Schlemiel, while I agree their would be some dilution, it would not be much. Once we have the PEA, we will know broadly the cost and benefit sides of the equation. This is what is required for financing production via a series of loans. Unless we get a high take out offer, this is the way we will go. My opinion and also stated by Jason Ward and Nick Mather. Also why would Newcrest have come in at such a premium at the time. We need to wait for the PEA, then I believe Solgold will give us a clear direction of travel.
'potential' being the operative word. SOLG's drill's unearthed so much to date and BHP know this to be true but I believe BHP want SOLG for the long term potential as well as the known current resource. For projects like this size is more important than grade
Taking Cascabel to production is pie in the sky nonsense. It would literally dilute every shareholder into the dirt, including Mather. And production is no guaranteed path to profits and dividends
I'm here for the offer, simple
"BHP will gain access to SolGold's Cascabel project, in northern Ecuador, believed to have the potential to become one of the largest copper-gold assets ever discovered."
http://www.mining.com/worlds-biggest-miner-speeds-hunt-copper-assets-buys-6-stake-solgold/