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A lot of larger mines are joint owned. It's a way of spreading country and geological risk.
Totally agree 're newcrest they don't have the finances now for cascabel. I cut think they want to be left out of it but they can't progress it even at 50% imo..
Jerry, I'm not sure of the reason, other than the obvious i.e they've never needed it. But as a general principle, it makes no sense for large multi-nationals to share ownership and shareholders don't like the confusion and disproportionate amount of management time that has to be dedicated to jvs.
If it's worth owning 30% of an asset, it's even better to own 100%.
Addicknt. It’s quite common in the oil industry for oil fields to be owned by many people, in fact its more common than not. I am not sure why the mining industry is different.
As always addicknt, your latest articulate post, provides us with your thoughts . The good news is whichever one of us is closer to the outcome, a payday awaits us in the future. Good luck everyone.
As Jerry says, Newcrest are currently being pulled in many directions and have a difficult situation to deal with at Telfer. But of even greater concern for them is the fact they are a prime takeover candidate. Many pundits reckon it will not be long before Rio take them out.
We are at the early stages (in mining terms) of the new strategy of majors investing in explorers in order to mitigate their own risk profile. We haven't yet seen how this will all play out and what their intentions really are. But I find it very difficult to believe that any major plc will wish to have a whole bunch of minority, or even majority stakes in a raft of independent companies...the world simply isn't like that. It's not what being a FTSE 100 company, or any other index, is about.
NM is obviously ploughing on with the search for interim funding (which can't be easy in the current situation) and he'll either be consulting our main shareholders on this, or he'll run the risk of seriously pishing them off...as I believe he already has done with Biswas. He's doing it to fulfil his own ambitions, which in any other circumstance and company, would be admirable. However, BHP couldn't give a toss about his ambitions. They want ownership of this (perhaps only Alpala at this stage) and I'm convinced they'll pounce when the timing suits them. The question for me is, will that be pre-interim funding, or not? Or will they take part in the interim package, cement their position even further and then act before the full package is progressed? On the basis this would make their position unassailable, NM will want to avoid this. So we could find ourselves in a wonderful ****hing contest. Either way, all parties here find themselves in an interesting position and I'd lay money on the fact that when BHP fIrst got involved they didn't envisage NM making so much noise about wanting to remain independent; it simply isn't what their new strategy is about.
Morning Quady. Its not just the money, its the management time. At the moment NC are being pulled in lots of different directions and dont think they have the time nor the inclination. They are more a sleeping partner at FdN, and if they have a future with Solgold, I think its more along the lines of FdN than any hands on role. They do have some serious skills and knowledge about block caving (see their website for lots of v interesting videos), but maybe that can be passed on w/o too much manpower.
Good morning addicknt, I take your point on one or more of the majors wanting ownership or a bigger stake, and agree that may be the case. Also good morning Jerry, I believe it would be expensive, as the major shareholders would have to sell out, so blocks would have to be brought out, and others like Newcrest and BHP, maybe wouldn't sell. That would raise the price. On Newcrest building the mine. It wouldn't cost Newcrest anything. Quite the opposite. I am suggesting that Solgold would engage and pay them to build it, with the 2.8 billion. Just like to add, it would make sense if they have already talked to the parties that would build the mine, in order to price this up and come up with the 2.8 billion figure in the first place.
I def think you can rule NC out of the equation. They have production problems at Cadia, Lihir and obviously Telfer. FdN is shut and only their exploration at Hav isnt giving them a headache atm. I think they would be a willing seller. I am not 100% on this but I dont think NC have any lock up clauses anymore (like having to follow the bod).
I met with NM 18 months ago. It was just after BHP had invested and although BHP were offered a seat, NM didnt think they would take it up. Maybe the only thing he has got right since then!
I cant see how any major would think that buying Alpala/Cascabel/Solg would be expensive. After all we are starting at 18p!
Morning, Quady. Personally, I think it's your last sentence which explains exactly why SOLG will not remain independent. None of the majors will wish to hold a small minority stake in this situation. In fact, it's inconceivable.
I also happen to feel Newcrest are in no position to invest a huge amount here - hence my observation. They are in a highly vulnerable position and a great deal is riding on Hav...which I believe may save their bacon.
Good morning addicknt, as always I enjoy reading your posts, as you always ( to me that is ) provide balance and thought to the argument. I am not so sure, that the CEO's of the major mining companies, disbelieve him. I believe that the reason we obtained a finance guy, with some aplomb, was to get the financing that we required. Agreed we don't have this yet, but the noises look good, and we can all guess what form this would eventually take. Maybe, we will get Newcrest to build this mine. This maybe one of the reasons that they have a seat at the table and BHP don't. I realise their could be other reasons, that BHP have not taken up a seat, and that gives your argument of being sold on more emphasis. I am in agreement that the commentators don't believe Solgold will take this to production, and various mining companies, want an increased position in future Gold and Copper reserves. But feel they don't want to get into a bidding war, and that Solgold maybe an expensive acquisition if they did. Maybe Newcrest and BHP, will settle for the 15%, that they each have, and look further afield.
montecristo, I have no doubt whatsoever that NM is serious about taking this to production - it's just that no one else believes him. And by no one, I mean market commentators/analysts etc. And I'd be doubtful the various CEOs of the majors will have much confidence in the claim either.
I know we are broadly divided into two camps on this matter and only time will tell which of us is right. Until such time as he's raised the full funding package, I'll remain of the opinion this will go to a major - BHP being the clear frontrunner.
I liked the sideways reference to Barrick - perhaps NC will sell their holding and a jv between BHP and Barrick will emerge?
Hi Montecristo, nice post matey, Solgold WILL be a major producer! Nick's "legacy" and all that. He has fallen in love with Ecuador, and more importantly, it's people. There's a long road ahead, but the journey will be worth it in the end!
FLA.
Good morning Montecristo. Indeed that is what NM has said in the past and has kept the message constant. I would just like to add that your estimate on a time frame for drilling the other tenements seems reasonable, and may indeed go faster. My reasoning for this, is that as Alpala has been drilled, we have made improvements in both the drilling and the data, and this will speed up the process in the future. So with more drilling rigs, and an improvement in technic, things look more positive. I would like to add a thought of my own. The later rigs could drill deeper and faster, also with 2.8 billion to build Alpala, maybe NM only requires the 150 million to get them to a position, that further funds can be borrowed, rather than share dilution, if we are near to a producing, and hence self financing mine. In terms of economic activity for Solgold, this is going to be ramped up considerably, and create many more jobs. This is not a case of jam tomorrow. For the Ecuadorian economy this is jam today.
absolute tosh.
I think the majority view on here is very positive not negative
With regards to timescales, It has taken 7 years to get to this stage. so some are wondering how long it will take to drill up 14 tenements.
I don't think it will take as long as some think.
It took time to get to know Alpala and for the first 2 years or so we had one drill, then 2 and it took an age to get up to 3 drills turning, years in fact. It was only fairly recently we had around 10 drills.
We were a small unknown exploration company in a country that had very little mining history and a very untrusting culture towards the industry.
The company and the country have moved on considerably.
Once we are cashed up, as we will be soon,
we could have 3 drills in 4 tenements at the same time.
What took 7 years with Alpala, could take 3.5 years for 4 more tier ones.
Lots of the other sites are now drill ready.
Even if we write off most of this year, in 5 years time we could have 5 top class mines with one(Alpala) about to produce.
I am starting to think that just maybe Nick is serious about Solg becoming a major.
cheers Waynexx [brr]
Sounded to me like NM was begging for barrick to make him an offer! That of course would release bhp from their standstill and the gloves are off.
I think nm has really screwed this up. He could have sold Alpala for probably 50p a share and kept the rest and gone exploring. Now it looks like he will lose the lot for less than 50p.
All that I bought between 17 and 11, I have now sold. Will keep the base position of a million and a half and may add again on dips. The downside is quite limited but his tactics have limited the upside too. But this isn’t a stock for the grandkids. I hope it’s sold this year. Its had enough of my time and money. Very sad because I was hoping and expecting so much more.
Maybe Nick has been buying today
16:57:01 07-Apr-2020 18.99 GBX 890,147 169,038.92 Off-book TNCP XOFF
Yes, in this interview today he emphasises more than once that the gold rich nature of he resource, as well as the high grade core is a Financiers dream.
I’m not too sure it’s useful to be talking about being an emerging major and he many other projects not yet drilled, in light of the number of years it’s taken to define just one of them
More than ever I think a bid will come BEFORE a full funding package is announced
Hot favourites Barrick and BHP
Interesting the mention about barrick. Clearly not accidental.
It can't be coincidence that the CEO of barrick has been talking today about reviewing opportunities to buy and take positions in, with an emphasis on tier 1 gold projects.
Thank you Wayne, just finished listening. I got the impression of very little or next to no dilution to get us to production. I have always felt this, but nice to see the way this is progressing to production.
https://www.brrmedia.co.uk/broadcasts-embed/5e8c6ba731da814c9fc68dad/solgold?popup=true