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Adding to what you said rcgl2 it sounds like they've been engaging with stakeholders and major shareholders in the process of reviewing the board. My assumption is that they will use this process to ensure that the 3 additional non-execs that are yet to be appointed are (at least informally) signed off or endorsed by the very shareholders or financiers that they need to be on side....
This makes a successful EGM to de-seat the board even less likely!
Seems pretty decent RNS to me...
- Solg has been operating like the smaller explorer it was, the CEO and directors run the show and the board is a bit of a fig leaf. Aim to find something big and either sell it or get taken out.
- Solg is now transitioning to a bigger, better run entity, with a view to becoming a producer. It doesn't matter if it ends up as a producer or gets taken out, the stated plan is to become one and therefore progress needs to be made. As such, it now needs a proper board, proper governance practices, proper remuneration committees etc.
- ESG matters. Those of us still working will be well aware, ESG is everywhere in finance nowadays. You can't go to the loo without taking ESG into account. You definitely can't invest millions into Solgold without thorough ESG screening.
- The RNS says this process has been underway since the beginning of the year. It is not a kneejerk to CGP's antics.
- What it handily does do is negate CGP's attempt to sack the board and replace it. The board is now being completely reformed anyway, I can't imagine major shareholders will want to suddenly derail this entire refresh process in late October and go back to the drawing board again to get a new board in place.
- RNS again mentions up to $190m in funding. Don't think that they would be mentioning that in regulatory filings if the FNV deal was all a ruse and never intended to get signed.
L2 still think enami will play a part.
Bhp to take solg and enami to take cgp possibly ncm?
Who knows.
L2, yes, that's been discussed a fair bit and, were it anyone but BHP, I'd see it as more likely. But it is BHP and they want this for themselves. They will see no good reason for providing funding only for shareholders of another company to benefit - I mean, who in their right mind would?
Quady, I do have a price target, but it's so theoretical it's not worth sharing. All I do know, is that it's far in excess of where we are now. JerryS and I have very different views on this and my price is well in excess of his.
As to the shape of a deal, it will be a cash offer - I really can't see BHP wanting to dilute it's own shareholders by making the offer partly paper-based.
By the way, I agree with you about time adding value. But the key is not to push it too far. BCN made that fatal mistake and the CEO has turned the company into a virtual zombie stock as a result.
how about solg and bhppr someone else joint partnership developing this monster mine
Good morning DBW, this may be part of Citi defence, I suggested some time ago, we had to be part od various funds, IE: Pensions, Investment Trusts, and later on Unit trusts. We may see continued buying. Not sure the 50 K buys represent this, but hopefully, we will go that way.
Q more 50k’s
Good morning addicknt, thank you for your thoughts.
I am sure BHP would like to own a larger share, or indeed outright. I just don't think they can, unless they go hostile, as any friendly negotiation, while cordial, would mean BHP paying near to or full value. As you know, I have always maintained, that at the right price, NM will sell. But what is the right price. If the NPV on the PFS exceeds 9 billion, then this is 2-3 pounds at the moment. I don't believe anyone would offer that.
When you say a deal between Solgold and BHP, yes that's possible, but suspect it would depend on the terms. A JV is I believe out of the question.
My question would be, what would BHP want out of it, and does Solgold have no choice.
The first I cannot answer, the second, I believe we have many options and are not a distressed company.
You ask would it be a good thing in my mind. I again cannot answer that, as it's not a possibility I have given much thought too. Maybe I should.
In conclusion: I think we have a long way to go, the further we go, the more we are worth. I am not bothered about price fluctuations, as have been at this too long. So the longer we go, the more expensive we are. ( I realize that's not true in all situations ) The closer we get to production.
May I ask you a question addicknt, as we know where each other stand on our final destination.
If a bid does come, in what form will the bid be, and if it comes after a PFS of 9 billion dollars, what range do you think the bid will be in. As always, all the best.
Next rns will land anytime
"Other corporate plans and policies are currently in various stages of implementation.
Morning Add
I can’t see this going to production.... last nights stock house report was pretty bang on for me
“Equipped with gold, silver and copper
SolGold (TSX: SOLG) is a prime example of a commodity company that is almost certainly going to be taken over or make a lot of money in the coming years. SolGold has explored 10% of the world's newly discovered gold in the last ten years alone. In addition, management believes that the company is well positioned with its explored copper deposits in Ecuador. In other words, the company is sitting on several great treasures.
The market value is currently still trading well below the billion dollar mark, although SolGold already holds 13 promising projects. To date the company has defined a copper-gold deposit of 21.7 million ounces of gold, 9.9 million tonnes of copper and 92.2 million ounces of silver on the Alpala project. Based on published studies to date, Alpala's average NPV is USD 4.4 billion, after capital development costs of USD 2.7 billion, an IRR of 25.9% and a payback period of 4 years. The mine life is projected to be 55 years. Against this background, the company is an excellent acquisition target for a large producer who wants to build something in Ecuador and not start from scratch. “
Morning, Quady.
A question: do you really believe BHP are going to be content with holding a minority position in this company? Is it your belief that once NM announces the long awaited finance package, they will slink off with their tails between their legs?
Let's assume NM recognises what a weak position he's in (which I'm certain he does) and seeks to strike a deal with BHP whereby they provide the funding and in so doing take effective control without having to bid. Would you see this as a good thing?
I fully understand your belief that the returns would be greater over the long term if we are independent and, to some degree, I agree with you. But surely you can see BHP are simply not going to accept this? 15% of the company is of no use to them whatsoever and they most certainly aren't about to turn their backs on a discovery of this magnitude.
As NM repeatedly says, this is all about maximizing shareholder value, which he knows must come about during takeover negotiations - hence todays appointments , both at board level and of corporate advisors. By the way, I can't recall seeing the appointment of so many advisors by a company that feels secure in its future path. Surely, you can see what's coming?
Not angry Magoo, curious. As an investor you think the likely outcome, will be a sale. I as an investor, think we are going all the way. The question was, since NM cannot convince you and others, that this is going to production. What can he say or do, to convince you. I admit, both are possible, and have based my strategy on that. Tiger, was a trader, and left, because he didn't believe this could go to production.
I don't understand why people are upset - except when you opened the RNS this morning it wasn't what you wanted to see, but this is good for SOLG - it's like a pre-sale service - would you buy a car without an MOT, in preparation for sale all businesses make themselves as attractive internally as well as externally as possible - NM will not take this to prodution unless he gets an offer which is right for his share holders.