We would love to hear your thoughts about our site and services, please take our survey 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.
On 28 April 2021 SOLG did a placing of 208.2 million shares at 25.5p...
"The Placing Price represents a discount of approximately 11.1 per cent. to the closing mid-market price per share of 28.7 pence on 27 April 2021."
Were Solgold desperate at that time Orthern...?
GGP recently issued shares at 8.2p...
"The Issue Price represents a discount of approximately 15.5 per cent. to the closing mid-market share price per Ordinary Share on 23 August 2022"
I said recent Orthern...
BHP actually made a bid for the whole company having acquired guyana Goldfields stake and got the new shares as a consolation orize...
"there is a very real chance". That's a fact. It doesn't contain a percentage certainty, because then it would be a guess. But stating there is a chance this won't get taken over is a fact based on probability. Just as you can't say, factually, that there is 100% certainty that there will be a bidding war. Okay? :)
Try not to get too worked up: share your opinions as opinions, like you practiced the other day with your 'IMHO' post, and everyone can enjoy themselves :)
If an entity wants to take a significant position in a company, that they cannot realistically get by buying through the market, they should be paying a premium.
You only sell something at a discount if your trying to offload it or are getting desperate
Jiangxi actually paid nearer 21p if you account for the known fact that they will be diluted post CGP merger and that fact was known. RCGL highlighted this a few days ago.
Post merger Jiangxi will drop to around 4.9% I think.
So the placing at 17p (it wasn't 16p) or split hairs and go for 16.8p but forex is swing around the weaker dollar blah blah blah...
The fact is had they taken 21p placing on Dec 9th, that soon feels like a 17p placing post merger dilution on Jan 9th assuming CGP meeting gets the requisite approvals.
Why do you need a stronger argument if you have already made up your mind? It's not in my interests to change your mind. Be happy with your theory Red :)
They may well try to buy solg or an asset in a few years time. Just no time soon, I wouldn't have thought.
BHP paid 45p when we where nowhere near that.. in the 20s I think.
"there is a very real chance that we won't be 'off to the races', and that no one will try to buy any part of solg for the next two years."
How is that "factual information" rather than just your opinion...?
Orthern it was a discount of only 2% to the price the day before...which is pretty good...
Please give me a recent example of a premium being paid for a placing...?
Have you considered the possibility that SOLG CHOSE to sell to Jiangxi to create tension with BHP, NCM and anyone else who might be interetested...?
So its cheap...we agree on that...
But unless theres a bidding war there is no sensible reason why they would buy this.
Supposing the SP were to recover to 35p? (I can't see that as there is no substance to go for other than very strong bid rumours or an actual bid...they would make a profit of $30 million...
Based on their 2021 Revenues they can earn that in 24 Minutes...
I'm afraid I need a much stronger argument than that...
Just to balance Magoo (I assume I'm filtered, fingers crossed!), there is a very real chance that we won't be 'off to the races', and that no one will try to buy any part of solg for the next two years. Wouldn't want anyone confusing Magoo's optimism (and desperation, if they are 'fully loaded') for factual information :)
Koh,
It could be suggested he sale of CGPs 6.7% of Solg shares would be a big catalyst… but the other side of the coin to that would be, why would someone pay circa 24p as an example, for the exact same thing the Chinese just paid 16p for?
The 16p strike price for the Chinese is why I am assuming their was no other majors wanting a position..
there's not much happening yet I see tens of messages per hour by the usual 4-5 people. Not sure what they can add to our common knowledge at this point so I filtered them out. Less noise and distraction from what really matters.
What matters is that we have a unique asset (Alpala), surrounded by several extremely promising licences. Each of them is potentially worth a multiple of the current market cap. Alpala alone is a monster and several MAJOR investors have a slice of the pie. Folks in the board have also a considerable holding and the company has made it clear that it's looking at ways to optimise value for us shareholders. We won't be mining our copper. There will be a fierce battle and at the end the SP will reflect the value of the assets. Not expecting to see a bit landing tomorrow or next week, but once we have completed the merger and the review is out, we are off to the races. I topped up last week at 16.5 and today at 17. I am fully loaded and i can wait for as long as it takes. Top up, sit back and relax guys.
Apart from a surprise, is there an event /news that will come that will shift our stagnant share price other than the cornerstone meeting / outcome on the 9 th Jan
Well said DBW at 12:40.
At this price we all feel there should be significant upside no matter which avenue we take.
Jiangxi clearly agree. That doesn't mean they won't involve themselves in a transaction should the opportunity arise.
Red- it was cheap. Paying less than half of what BHP did for something they may want to mine in a few years time? No brainer.
Doesn't mean they are about to start a bidding war to try and buy the whole thing though. That's a leap too far, surely.
Or find a similar asset of their own. Don't forget that possibility, Fort. Maybe that's why BHP have set up their own exploration company in Ecuador. Massively underdeveloped compared to some other countries you mention. No rush to mine just yet- have a dig around first. That's their plan: they've been clear enough about that.
Ortherncopper,
I don't see that way at all. I think Cascabel is rare and super majors are desperate for resources and opportunities. Countries like Chile, Peru, Venezuela, Brazil and so on are all volatile and majors are looking elsewhere. Russia was once an outlet or opportunity for some of them and that door is closed now. Opportunities like this do not come along very often. Ecuador has it's own issues, I'm not going ignore that factor, but compared to most of South America, it's a new green grassroots opportunity for a super major and concessions likely.
If I were you, I would concentrate on the asset and ignore all the canoe, paddle and other stuff. It's the asset that commands the price. If a buyer wants it, then they'll have to pay for it.
Agreed Orthern...
Fort.
Well BHPs average is way below 40p these days, and in relation to the huge scale of operations they operate at, their position in Solg is just crumbs off the table… they could easily decide to just shelve it indefinitely if they view us as not a current priority, which is possible.
My view for a while has been they would probably move for Newcrest before they moved for Solg.. that’s the kind of scale they look at when it comes to Large M&A. They would get an instant route to current profit generating mines…and prospective ones.. Haveiron etc and a Larger chunk of Solg thrown in
I thinks it’s easy for us to view Solg as hugely important in a way they maybe don’t… we are tiny.
My opinion now is Solg have failed to add the additional value to Cascabel IRR, which never really blew the doors off at PFS stage…. The hundreds of millions they said the PFS addendum would add to NPV, have not been found.. and Porv is probably disappointing, compared to its original promise…
So the unholy alliance of CGP and Solg has had to happen in order to find an acceptable, profitable way out for the likes of Mather, CGP, Irwin etc now that the dream of Solg paddling it’s own canoe has sunk.
They have brought big bad bob and his baseball bat in, to try to engineer the best way out of the position they have got themselves and us investors in to.. and that’s where we are now.
I’d love 60, 70, even 100p but just can’t see it now.. we are all left hoping that the Cornerstone crew and their friends can get us a result for us.… how things have changed..
they are now in complete control. Which I am actually fine with, as our board have failed managing our asset over the last 3-4 years
Sorry teleg again...
And still only one of the posters who insist a bid isn't coming has answered this simple question?
"Why did Jiangxi buy 6.3% of Solgold...?
Four times the current pri ce...
Just trying to get the message over telegrap...
Theres at least one bid coming and the shares are worth much more than 17.26p...
Broker average below is 69p...and thats on an assumption of taking Cascabel to production... (just for you Quady)...
2 cracking footy matches to watch on catchup from today so far...