SolGold Share Chat (SOLG)

Quady, obviously I don't agree with your overall analysis, but you are correct to say people will have to talk to each other - and this explains the reason why nothing has happened yet. BHP are legally bound and are not able to have discussions with anyone. As we all know, on October 15th that all changes.
Of course, whether they have stuck to the requirement is another matter.
By the way, you regularly refer to "full value" - what is it? One mans price will not necessarily be anothers. For example, most people on here would accept two quid at the drop of a hat, but you would argue that if we wait seven years the price could be five quid. The concept of full value doesn't really exist.

Excellent. Very clearly put. I am in agreement with you. When do you think the first bid will arrive

Quady - You think we are going to production? You’re wrong imo and here is why:

1) When we hired Citi back in April and the FT reported “SolGold bolsters hostile takeover defences” on April 21st, NM would have done that for a reason. He must know a bid is coming. Tick tock it’s been 3 months and 19 days since that article.

2) NCM withdraw their Board rep because they’re about to either Buy or Sell more. Why would they sell, it makes no sense? Another hint of a possible bid or more control of Cascabel.

3) NM has not denied being I formally approached in one of the webinars. He probably couldn’t deny because they’re at the NDA stage and DD is ongoing.

4) He did a last ditch cheap raising at 21.5p. Last chance to get himself and hi friends some cheap shares.

5) FrancoNevada praising SolGold’s Cascabel prospect in their earnings call.

6) CGP desperate to sell themselves with the sell sign well and truly up. They are desperate Cz they know whoever buys SOLG buys them for $3.5m.

7) CGP have said publicly SOLG have material insider info they’re not disclosing and SOLG have publicly denied this. What could this be? CGP want this in the public as it would probably raise their share price too!

It all points to a takeover within 5 months.

Quady, no disrespect intended as I may not be following your reasoning but I had a couple of questions about your last comment.
You seem to assume that you can't bid (say if you were Barrick) unless you buy out BHP. But BHP may hold its shares and a bid by Barrick for control could still succeed. Presumably the two majors would then do a JV as happens in many mines.
Also, I am not sure why you say it is a diverse share register. I think one of the problems that has stalled the share price is that it is not diverse. You have significant holdings (which are not being traded) by Nick Mather and entities he controls, BHP, and Newcrest. The only trading that has been going on day to day is in small volumes by small investors. Apart from the acquisitions by Newcrest and BHP a considerable time ago, I would assume there is no trading by any large player in the small volumes we see.
It seems to be the big gulf between the share price and its real value is because this is a tightly held share company with a few big holders. For example, if this company, hypothetically, was floated on the LSE now with this potential, there is no way it would be trading as low as 26/27 pence.
Happy for your thoughts. I may not have understood your point. Hope you are well

Guys, you just can't bid, with such a diverse share register. People are going to have to talk to each other. Each holder will try to obtain more and more. If none of the main holders sell, then it doesn't matter how big the bid is. The problem that anyone buying Solgold has to overcome, is how to get the main shareholders to part with their holdings, for anything less than full price.

"Everyone wants a piece of this! Franco will be gutted if BHP swoop in and buy SolGold outright!"
Would BHP be gutted though if franco deal is signed off and becomes binding for both sides? Would a bidding deal not be an added complication for a potential bidder?

BHP may or may not make a bid in October...but that's not to say they won't then make a bid in November, or in December, or in January, or in February, or, or or!

FN believe it's one of the best copper-gold development projects in the world. BHP only a few months ago restated their goal to expand their copper portfolio. And what better place to start then SOLG; they made a failed bid for it 4 years ago and started buying tranches in late 2018 (most recent Dec 19) - they've been sniffing around for 4+ years and they still like what they see. Ditto Newcrest who have had an expert on the inside for 3 years. And in that time SOLG has RNS'd a Tier 1 Cu/Au resource that is mostly in the measured/indicated categories. The PFS should be mouthwatering with all of the improvements in mine design/metallurgy since the PEA and with gold price flying. It's almost impossible for there not to be a bid.

Good evening BNC, that's exactly what I think will happen, October will come and go, and BHP will make no bid.

Known not know

Jerry

I dont think its unreasonable to think that bhp want the Cgp situation resolved before making a bid .
Even if Nm.was happy to sell at the right price he would never let that be know

Everyone wants a piece of this! Franco will be gutted if BHP swoop in and buy SolGold outright!

October cookie matey..............

Wonder what'll happen if they do absolutely nothing and merely just wait.................?

It is of course a distinct possibility.........

Mmmmm

Lets hope that's not the case ;o]

R's
BN.c

Phatt,all going to plan then ,not long till BHP freed up imho

Their response on Due diligence completion:

Carey MacRury -- Canaccord Genuity -- Analyst

Okay. And then maybe just on the SolGold transaction, just wondering what the schedule looks like just on the due diligence completion.

Eaun Harrison Gray -- Vice President of Business Development

Hi Carey, Eaun Gray here. Due diligence is ongoing, we hope to complete something in the near term, as we've previously messaged. Obviously, with COVID, these things are bit challenging but it's ongoing.

Apologies if already mentioned but I didn’t read much last week on the board - too many posts!

Points from the below:
1) Until January next year we have the option to get another $50m and total then = $150m. Also the option to buy back 0.5% “for a period of time”. Does this mean NM expects takeover before January 2021?

2) Onsite due diligence still to be done due to Covid. Eliza confirmed almost done via email.

3) News soon!! Bid before Xmas £1-2.

https://www.fool.com/earnings/call-transcripts/2020/08/08/franco-nevada-corporation-fnv-q2-2020-earnings-cal.aspx

Paul Brink -- President, Chief Executive Officer and Director

Thank you. I'll be talking about recent business development activity and our future growth drivers. During Q2, we reached agreement on $100 million financing for SolGold, where we will receive a 1% NSR on gold production from Cascabel property in Ecuador. Cascabel is a large copper-gold porphyry system amenable to block caving, and we believe one of the best copper-gold development projects globally.

M&I Resources are 2.7 billion tonnes at 0.53% copper equivalent, very interesting to us that includes more than 21 million ounces of gold. The resource includes a high-grade core of more than 440 million tonnes at 1.4% copper equivalent. So, goal has the option until January of next year to increase the deal by 50% that would be a 1.5% royalty and $150 million financing. They also have the option to buy back half of the royalty for a period of time. We've retained an option to convert the NSR on all metals to a gold only royalty on an NPV neutral basis.

As COVID travel restrictions were in place when we agreed the transaction, on site due diligence was deferred. We've provided interim funding to allow SolGold to continue its activities until we can complete our due diligence. Credit for the transaction goes to Eaun Gray and our business development team, and they are available to take any questions later in the call.

Thanks Quady for that information. Have a nice weekend

*cannot see how it would happen without setting...

I'm sure that CGP would bite someone's hand off for £1/share! So, might I and many others on here!

The problem with that thesis is that I cannot see it setting the full takeover ball in motion. As soon as one player makes a move, that will be the start of the end game...

Everybody says we need an offer to start the ball rolling.
Ok I’ll give you £100,000 for the company.
Top that!

You can be quite sure that our BOD has talked with every major shareholder at some point. They all know and have evaluated the situation. They all have plans and contingencies and they are all waiting for someone to make the first move. It is a game of high stakes and it is also a game of bluff. Once the CGP situation is sorted and the resource value of Alpala clarified, you'll see some action - and I think it will be dramatic.
Once the full value of

Really ,i thought they were in a bit of trouble financially schmeil

https://twitter.com/ben__rickert/status/1286299117329637387?s=21

Jerry - I've been thinking about CGP's attempt to replace the Solg Board and what their true motivation is beyond the obvious of selling Solg to the highest bidder! Might it be part of their strategy to sell Solg thereby generating significant revenue from their 7.6% holding eg:- £1 sale = approx £150m and £2 sale = roughly £300m Appreciate that those sale prices might seem a bit optimistic right now but if they did get a return at those levels then paying their share of Alpala construction costs suddenly seems more feasible! Just my musings and interested in any other views on this. Thanks

Anyone think that NM might be happy to sell out to BHP once he has ground CGP into the dirt? There are some big egos at play.

Earthling, I appreciate and enjoy your posts - and the value they bring - and your commitment to SolGold. (I appreciate Quady’s too). It is frustrating though when you don’t seem to realise that your tone is argumentative / provocative - which can lead to a day if arguing posts to navigate.
With respect, please can we all keep it civil. I don’t post much at all, but absorb much of the great info out there (across wide sources Including discussion on this board). I think we can all agree that much outside of RNS and company released/available news (from involved parties) is just opinion (as Quady didn’t deny) - but there is nothing wrong with having an opinion.
More importantly, most of us here hopefully want the same thing...for solgold to do well and what’s right/best for shareholders - whether that’s ultimately an alpala or company sale - or taking this to production.
When I read your posts I’m always willing you to stay calm, but I just don’t understand the moments where you let that slip. I enjoy your calm and informative posts...but not when you seem to change tone.
Again, just my ‘opinion’.
All the best everyone, enjoy the sunshine.