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They're new shares...CGP own 157 million which will be redeemed post merger but in the meantime the temporary dilution and the threat to issue another 1.6 billion forces ZBHP and NCM to make a decision...
We could even start the bidding war before the AGM..
And surely we're due a TR1 for all the recent buying...?
The announcement reads Issue of Shares, not Transfer.
For now it is definitely the issue of 180m of new SOLG shares. Hopefully those shares will be cancelled post merger. This is however quite different from what DC said last time which was that CGP would place out their SOLG shareholding and loan the money to SOLG.
Red you are correct buckle up ,this mining rubbish being spouted is becoming more and more pathetic by the day imho
RK, very good point.
It minimises dilution addickt...they'll simply redeem the CGP stake after the AGM and merger..meanwhile another 8% plus to vote for Nick...
The Cornerstone shares are not going to be cancelled and look very much like the ones we've sold to the Chinese;
"The Transaction provides SolGold with the opportunity to sell the 157.1 million SolGold shares held by Cornerstone to strategic investors before the closing of the Transaction."
Yes my bad. No dilution apart from the 25m shares which is nothing at all. But placing price still pants.
CGP can sell their SOLG shares if they want to, but to make the merger more simple, it's being done through SOLG as loan until merger completes. It's just accounting process.
So that's the CGP shares tidied up and a warning signal to BHP and co... you are up against 'potentially' the largest commodities entity in the world. You have absolutely no chance of beating them should you go toe to toe and ultimately it comes down to price.
They have 6.3% now at 17p so that makes the other 93.7% a bit cheaper for them.
Reminds me of Noront... and Wyloo's early stake.
Sire F...
CGP own 157 million...the issue is 180 million of which 155 million are going to Jiangxi...
So where has the 25 million slice of shares gone ?
Perhaps the answer to the question of the shares is the description of them as being "Investment shares". A normal placing would simply describe them as new ordinary shares or placing shares.
The RNS needed a definition of Investment shares. But if they are the CGP shares, I'm still mystified as to why we've announced it first. We can always rely on our board to sow confusion!
It is reading like an outright issue of 180m new shares after all.
sire_frugalman, correct forgot the 155m (wasn't 157m??) shares were held by CGP so there is no NEW share issue or dilution apart from the 25m shares which they seem to have from elsewhere to make up the 180m.
I guess Maxit pocket the other 2.1m shares as their fee lol! But they have gone someone where???
I think he assumed it was the issuance of 180m new shares. To be very sure, because the RNS does not make it clear: 155m of those are CGP's existing SOLG shares, and 25m will be new shares? That announcement really is unclear. And the money from 155m of CGP's shares will be loaned to SOLG? Since the merger has not occurredyet, SOLG does not own those 155m of its own shares.
sire, I don't know and am confused.
Oops pressedit too early.
So the SR says "we are up for sale" the merger gives you time to ready your bids and you will be buying the whole of Cascabel.
For Sangha to be so unprofessional, he would have to be certain there were bidder(s) waiting in the wings. Jiangxi didn't buy their initial stake through Valustone just as a bauble.
So I believe they are a 'stalking horse' and we know Mitsui ( Sumitomo ) are very interested as well ( look at what they're doing with a significant stake in Atlantic Lithium, another in the DGR stable).
So Nick and Bob have at least two bidders/ counterbidders lined up.
Meanwhile there is no way BHP will walk away without a fight. Ingo told me 2 years ago that BHP had all their best mining engineers in Ecuador looking at the whole of SOLG.
So....all the key personnel are gone...we have an Interim CEO...Elodie and Kevin are going..its only a matter of time before the starters gun fires in a bidding war.
Buckle up...
Oh and sorry Stack...you're wrong...not a BHP apologist are you...?
No, they're not. While the West has been asleep at the wheel for the past decade, China had been working hard putting its reserves to use on the BRI and buying up copper assets everywhere it could because a government that expects to be around for 50 years, looks 50 years ahead. Ask Robert Friedland who he'd rather be in bed with, the Rio Tintos and BHPs, or the Chinese? And many of you in the West may be very shocked to hear this, but the answer is exactly the same if the question was posed to heads of states in Africa. I am a bit uncertain about South America (because it is an ocean away from China), but when the Chinese sniff a bargain, they don't wait at all.
addicknt what are the 155m "investment shares" if not CGP's? Another exact 155m from somewhere?
Frotissimo how did you calculate 6% dilution?
I think Mitsui comes next once they get all those resolutions through at the AGM. Then they can reward all us shareholders with another 200m share dilution and a placing at 12p.
Seriously... if this is how 'good' Maxit are then it doe snot bode well. Yes, 6% is minor dilution and the royalty took the brunt of it. But 17p placing price for a 6% stake is shameful. 19p would have been just about palatable - 20p ok and 21p par for the course based on previous levels. 26p much more ideal.
There is no indication what the money is for... whether it's for cascabel or for some regional exploration. But assuming it's for a bit of both, then Porvenir could be the play here with Valuestoen previously investing $5m in that via placing at 32p (yes 32p!!). We know that they want to open up possible extension play near warintza, so Chinese might be interested in the South more than the north imho.
Anyway... it's done but as far as Maxit are concerned... I'm not that impressed at all.
The AGM is not going to be a shoe-in unless they pull a rabbit out of the hat, as we've had delays to the two promised updates, share dilution via. a weak placing price and if that was under the old guard, then they would be out on the butts.
Not impressed at all.
Am I reading the agm resolutions correctly. They laughed at the special resolutions last year but this year they are asking for permission to be able to issue another 1.6 billion extra shares. How things change.
smick, yes, it's certainly likely to put the cat amongst the pigeons.
Given that CGP did not make an announcement yesterday, I'm assuming these are not their shares. As RK says, perhaps they are no longer planning to sell them, although if the company wanted to avoid dilution surely it would have made sense to do so? That's why I thoght the plan was so neat.
RK1 we are selling the CGP shares, the RNS specifically metions 155m investment shares.
So here is my take...
The Board, aided by Sangha, are doing as much as they can to annoy BHP...first Oanother streaming deal and now a placing, both of which exclude ZBHP and dilute them.
So the Strategic Review is an invitation to interested players to 'sharpen your oencils'
Correct. We sold the 155M shares as promised. People are saying things like "what do we need the money for" etc, but i think that's the besides the point. It's to force someones hand and improve our own negotiating stance. We don't need to raise cash just to keep things ticking over. The interim CEO has already talked about reducing burn.
Possibilities with the additional ~30m shares -
1. Chinese wanted more
2. It further dilutes BHP et al. - would they be below 10% now? That further closes the gap between chinese and BHP/newcrest, further increasing the tension on those 2
3. It's only like 1.3% dilution? Not a huge amount to most other folks.
Nothing necessarily about us needing to / wanting the extra $6m or whatever it is.