Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Maybe so novice but I'm very pleased investors made money and didn't lose all their money as you desired and the opposite happened here.
All in all makes it fair.
Now can we be friends?
Lolzzz
Cont ….
The new management team that was put in place was headed by Darryl Cuzzubbo, the past president of Olympic Dam and veteran of 24 years at BHP. This seemed an excellent fit for an eventual sale of the asset to BHP, already an owner of 13% of SolGold. It never came to pass though, and Cuzzubbo was shown the exit in November of 2022. Meanwhile, as the SolGold soap opera played out on the London Stock Exchange, Cornerstone was either range-bound or slowly bleeding, and copper prices were strong. Cornerstone management, late in 2022, got an opportunity to exit the asset on decent terms, and given the drama at SolGold, we can hardly fault them for that. They made a decent profit for the company (and they were all large owners of the company), even if it was not necessarily a good return for Massif Capital. In the end, the Cornerstone management team sold their stake in SolGold and the Cascabala asset for $0.04 per pound of copper in the ground vs. the $0.06 to $0.07 per pound we expected as a result of our review of 21 precedent transactions dating back to 2010.
We were not sure we would have made any different decisions based on our information. Our expectation that Cornerstone was a seller and that SolGold would eventually need/ want to consolidate the asset was correct. Our timeline was accurate, and our read on management incentives was roughly correct. Still, our read on the magnitude of return needed to justify a sale in management's eyes was off by ~50%. We played our hand well, but we should have been playi
ng the management team's hand when we thought through the prices at which the transaction could be acceptably completed in the context of their incentives. If we had done that, we might have been more cautious with our entry point.
Why the price couldn’t move
POSITION EXITS
Cornerstone Resources (CGP:CA)
We entered Cornerstone Resources in January 2020. The firm was an underfollowed holding company of mineral properties in South America. Our interest in the company was driven by its ownership stake in SolGold (SOLG:CA), a London-listed copper and gold developer focused on Ecuador, and the firm's ownership percentage of the land package on which SolGold's crown jewel asset, Cascabel, is located. We owned the stock with an average price of CAD 4.5 and sold out at CAD 3.2 for a loss of 28%.
The investment goal was to benefit from an expected sale of the company, with the value derived from CGP's stake in the Cascabel asset. We expected that the sale would take place within two years. On October 7, 2022, the firm announced it was merging with SolGold. Our timeline proved roughly correct, but we lost money.
Our first misstep was the timing of the purchase. We started accumulating shares in January 2020, expecting SolGold to release an updated technical report on the asset sometime during the first quarter. We expected that the asset would improve with the release of this technical report. Rather than release new technical information, the firm reconfirmed the existing technical report and then delayed the release of a pre-feasibility study that had already been delayed once. As SolGold and Cascabel were the assets on which CGP traded, it fell on this news.
The delays should have been a red flag, and we should have exited, but at the same time, Nick Mather, the CEO of SolGold, stepped down. Nick had been forward-looking in building SolGold, having ventured into Ecuador and staked out large land packages that were highly prospective long before Ecuador became a hot spot for exploration. We are unaware of any shareholders who liked him. Liking management is not necessary as long as they are competent. Still, Nick was sufficiently disliked (in part because of his lack of a particular type of competence) that 44% of shareholders voted against him at the December 2020 AGM.
Nick was hell-bent on building the Cascabel mine. We viewed this as a problem. The deposit is fantastic, but only if you want to build a large, deep block cave mine. Block cave mining is a very complex method of monetizing an asset. It has a substantial upfront cost and requires tremendous expertise, which SolGold did not have. We viewed his departure as a positive, opening the way for the asset to be sold alongside Cornerstone's stake in both the deposit and the SolGold. Within that context, a delay in the PFS release, giving the new management team time to reassess options, was not an obvious red flag.
BPHIL of course frosty mornings won't be a thing of the past.
Climate change is about extremes in the ecosystem .
We can have even colder temp but the average will be higher year on year for the cycle that we inhabit at the time.
Spoilt little brat, or in other words "a manchild"!
Yes he is been an idiot. He will stop soon enough.
Zoros . Tell your neighbour not to worry ; according to the climate change expert Quady and his astronomy mates , frosty mornings will soon be a thing of the past ....
Any news on SOLG anyone...?
Novice ..lol!!:):)
Blimey this has turned into a top gear chat board ? Have a great weekend all, and nice to finish positive (albeit small) for the week. Also happy in the knowledge that poly is fooooooooked Lolzzzz
A few weeks ago exactly the same happened to both my petrol car and diesel van.
What's your point?
I'm sure you know that's **** all to do with having an electric engine Zoros!
My neighbour has a Tesla. During the cold snap a few weeks ago, he couldn't get into the damn thing because the door handles wouldn't pop open because of the frost/ice! He had to use a hair dryer to free them up.
Z
I've got a Tesla Model 3. I was initially nervous about it and the UK charging point infrastructure, but it's not an issue. I;ve got a charger at work. If you are on the motorway you can frequently do a supercharge in 20 minutes - have a jimmy and coffee it's not an issue. I'm not a car buff but I was keen to get away from petrol/diesel cars and a lifetime of a multitude of different conventional engine kit going wrong and frequently costing the earth. Make no mistake about it the Tesla superb, I'll never go back to petrol/diesel cars if I can.
Pricing at public charging points has gone nuts in conjunction with electric prices going through the roof.
But that will drop when V2H comes into regular use and the price of electric drops to reflect less stress on the grid.
Articles from the likes of Giles Coren recently have not helped, but EVs are the way forward. Surely he knew **** having access to a home charging point would create issues.
Off peak 7.5p/kw
Peak is 39p but rarely use peak electric
Access to free chargers for 2 years, until October, within walking distance
Octopus
Electric prices will plummet this year, imv
And one thing everyone is missing is that the damage done to the environment by BUILDING a new E/V is much more than the damage filling my AMG will do if I keep it for tbhe rest of my life.
And it is also the reason why I always buy secondhand cars...
Addicknt, no I've not read the Daily Mail.
But I do know an EV that's done 120k miles and has only ever needed tyres and wiper blades replacing.
I guess the brake pads might need doing at some point, but I don't expect there will be any trouble from the timing belt, water pump, oil filter, catalytic converter, EGR valve, exhaust etc.
So its not all bad news.
If you can charge up at home most times, and you don't think electricity is going to double, I think they are worth a look.
I had a plus in Hybrid then changed to Full Electric MERC EQC last year (I keep the full Electric vehicle for only 6m) then charged back to Hybrid again. It’s £0.55 per kWh to charge (I still have the Shell Recharge app, which you can use at all London lamp Post to charge on residential parking bay) ubitricity (now owed by shell) its more expensive to have a full electric vehicle, it’s cheaper to use petrol and pay the CC when travelling to central london (Hybrid is definitely the best options and it has very low emissions) and don’t forget it takes around 10+h to change at the £0.55 per kWh. The best thing about electric cars is you can’t use the air-con or heating (immediately your range is halved lol….. and that is if you ever can get 70-80% of the range showing)
I'm certain you lot are all far too intelligent to read the Daily Mail, but in today's edition there's a two page spread on the realities of owning an electric car - and it isn't good news.
Just looked up average price per KWH amongst UK power companies.
It's 34pence.
So for 28p you wouldn't even get one KW. Hence not even four miles.
Tesla what is your cost per KWH and what power company are you with.
I can charge our car 35 miles and it costs 28p
From the telegraph Tesla
“New peak pricing at electric car chargepoints can leave consumers worse off than if they stuck to traditional petrol-engined vehicles, according to new analysis from the AA.
Previous analysis by motoring organisations has showed the cost of charging electric vehicles has soared (https://www.telegraph.co.uk/business/2023/01/06/electric-vehicle-drivers-hit-surge-pricing-thousands-roadside/) in recent months, driven by rising energy prices partly triggered by Russia’s invasion of Ukraine last February.
Rapid charge points used by motorists topping u
p on long drives are now nearly £10 more expensive than filling up a car with petrol, the RAC revealed last week.”
Depends on the weather/temperature.
One comfortably does 5 miles per KW the other is half that.
But 8 months of the year the KW are free and off peak is 7.5p. Plenty of people still on a rip off peak tariff though.
But there have been free chargers and still are since I first got an EV in 2020.
Sorry Tesla if you were correct then 300miles would cost three pounds which is less than ten kilowatts.