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Italian just contact your broker
Ii has made it really easy otherwise simply instruct them how you wish to vote. I voted fully in support of the board and its recommendations. No point being invested in a company you don’t have faith in.
Q, you surprise me. I'd have thought you'd want to vote for the Specials.
Red, I don't think that's what they're saying. The suggestion is that Solgold spins off all of the regionals apart from Cascabel to all existing shareholders. So we and CGP (post merger) receive X number of shares in NewCo for each Solg share held. We continue to hold our Solg shares, and Solg now only has Cascabel and nothing else. Third party bidders then bid 50p/70p/100p or whatever to buy Solgold, which is just a wrapper for Cascabel. No transfer of ENSA out of Solgold. We, CGP and all other Solg shareholders get our payday for selling Solg, which ceases to be publicly traded. We are left holding the cash and our shares in NewCo, which continues to explore and develop all the regionals giving us exposure to upside in the rest of the portfolio should we chose to keep those shares.
For the first time I will not be voting, as I have no idea who stands for what or what their position is on anything.
Never mind, found the info on SEDAR.
Did any one of you have luck with the Investorvote control number provided in the proxy form? I get an "incorrect number" error message.
Sorry, being dense today, can't find it on the Solg website.
Red,
What happens if SOLG gets a proposal that has to be put to shareholders before the merger completes?
CGP holders wouldn't be eligible.
Why would Bob and Maxit arrange to sell a company they are trying to switch into before that switch takes effect?
How can a transfer of licences at nil consideration be a disposal for tax purposes? I'm no expert on the Ecuadorian capital gains tax and don't have the time to delve right now but companies exchange licences all the time and don't have to pay tax.
With the spin out, Bob and Maxit remain incentivised to sell SOLG OldCo and they get another investment in NewCo to recover the premium given up by merging when they did.
I just think it's a very viable option that will clearly need a bit of finessing by SolGold. I just hope they're giving it due consideration.
Sorry DBW not yet, but
I will be voting for:
Nick
Maria,
Dan
Scott
and all the resolutions, but AGAINST
Twigger and Clare
Hope this helps
Sorry fior the misunderstanding...
So let me get this right...SOLG spins out the regionals for 5p a share...thats £115m, on which there is tax of £29 million...
A 'transfer' will be treated as a disposal for tax purposes...
And CGP shareholders are left waiting for Godot in 'Oldco'...
Whaaat?
You're either bonkers or an even bigger optimist than me...
Please give us more detail on your proposal, as far as CGP investors are concerned...
CGP don't get paid anything, because under your scenario they are already SOLG shareholders.
So either that involves a spedcial dividend or the money goes into your Newco and CGP have to wait for the big bucks.
It makes no sense whatsoever when they said CGP was worth up to $20 a share and the current SP is $3.99 and the original value of the bid was only $4.07...
There has to be something massive going on behind the scenes for them to take that apparent hit of c$16/share or $600m against their previous valuation of CGP and with only jam tomorrow promised through a 'spin out'
We're not spinning Cascabel, Red. We're talking about spinning out the regionals.
It'll be a transfer. Not a disposal.
It works for all.
Red - it does suit CGP and the rest.
CGP get paid for selling SolGold if that happens like the rest of us and then they can sell their stock in NewCo once it lists if they don't want to roll the dice. It would be a headwind for the NewCo share price but a temporary one.
That's the beauty of it.
Sorry that was £150 million not £50 million...
Red 12:54
With all due respect Red there is zero chance of this. Bob and Maxit are acting as adviser to SolGold in the strategic review.
They are not going to sell the company before their shares land.
Just think about it.
As Nick has pointed out years ago...a spinout involving a sale of Cascabel would involve paying Ecuadorian taxes on the profit, i.e. 25% on, say 45p (your figure) x 2.3 billion = £258 million or 68% of the value of the current market capitalisation...
Now what would that do to the share price...?
Bozi my friend...
"The spin out protects us all by giving us future upside on further discovery and development. "
Does 'us all' include the CGP big hitters...?
Because they haven't signed up for a long drawn out scenario like the one you paint...
Remember only 2 years ago they said CGP was worth either $12.50 or $20 a share in aggressively rebuffing Nick.
And now they are bedfellows...that can only be in anticipation of a big payday, otherwise why appoint Sangha to both companies...
He desn't do project acquisitions, spin outs or J/Vs...he does highly successful takeover bids like Wyloo...23 to 110 in 5 months...
And he'd have to be pretty stupid to lambast NCM/BHP without something big up his sleeve...
And your comment about Lassonde is exactly one of the reasons why I believe there will be a takeover battle...
RK …. You cast your votes yet ?
Bozi I don't remotely think a bid(s) can be ruled out pre merger...
Sangha, Irwin, Caldwell, Chamandy et al are at their weakest point right now because of the merger delays which I suspect are a combination of regulators (both Canadian and London), processing all the immensely complex legal and documentary changes, ensuring the CGP Register of Sharehodlers is accurate; communicating with all CGP shareholders; the required notice; etc. I think there is a risk that the merger won't complete befoire January 2023...
And that means maximum vulnerabilty for the CGP Board with no power except to pull the whole deal. And where would that leave them (apart from massive loss of face).
So unless there is a specific bid or transaction which emboldened Sangha to make that utterly unprofessional statement (which in my opinion alone could undermine whatever their masterplan is) and such a bid or transaction would have had to be announced by now, I think they are actually at maximum risk of a takeover bid(s) BEFORE the merger is complete.
Although a successful bidder would only get 85% of Cascabel, I believe a big enough company would have the power to squeeze CGP dry long before production.
And after all, even with a successful bid of, say £1 CGP shareholders would get say £50 million, against which they would have to settle the Alpala costs they have already logged up and what could they do with, say £100 million?
Their Ecuador projects aren't setting the world on fire and I wouldn't be surprised if, having missed out on the big payday, Sangha would want a special dividend of up to 20% of the deal.
So if I'm smart enough and big enough, I make a knockout bid BEFORE merger...
Nice discussions today!
You're going down a rabbit hole Redknight.
My reference to full value is exactly as you explain. If someone wants to pay 50p for SOLG then just pay 45p for Cascabel and give all thoae who want a bid close to what is deemed to be full value.
The rest of the assets are then in a separate company to press on with.
Why should SolGold sell everything else, Porvenir included, for effectively that 5p implied value, when Lassonde's predictions could come to fruition?
The spin out protects us all by giving us future upside on further discovery and development. The same works if we're talking 90p and £1.
It won't be pleasant for us all still in the game if SolGold sells in full in the next few weeks and then Lassonde is vindicated any time from 2025 onwards.
If you're thinking of the takeover route then the merger would have to complete and then SOLG would maybe even have to consolidate on the one exchange (presumably London as Toronto would cause uproar).
Then you'd see a proposal.
So even the full bid isn't straightforward. The spin out in my opinion is no more complex than a straight sale. In fact, I'd say it's cleaner in certain respect.s.
Bozi I've unfiltered you to answer your post...
I don't think anybody would pay remotely near 95% of the 'full value'...
And what is full value...its a circular argument because Cascabel is pivotal to 'full value'...
But look at what Newcrest paid for 75% of Havieron before walking away. I believe it was a fraction of what GGP shareholders would have thought 'full value' was...
So for me 'full value' is the highest amount that the ultimately successful bidder ends up actually paying...
In the case of OZ Minerals, it doesn't look so good at $28.25AUD but thats if you overlook the SP being $8.50 in May 2020 and $16.05 in July 2022...
In the case of Noront it looks miles better because the SP went from 23c to 110c in 5 months when Wyloo came up with a knockout bid..
So DBW I don't think we can rule out the possibility even of Warren Irwin being wrong, in the context of Goldman Sachs' $20,000/tonne forecast and a structural deficit in copper for the rest of our lives, either because new copper isn't being mined, or it isn't being developed, or even found, while the copper reserves of the majors continue to deplete, with consequences for their long term earnings...
The Chinese are hellbent on getting an armlock on all 'strategic' metals, especially REMs and EV critical metals such as copper. So as the CCP is behind Jingxiang I don't believe even £2 can be ruled out.
Equally if a bidder who isn't involved in SOLG comes along, determined to secure the prize, they would have to bid enough to knock out all interested parties which at the moment we know includes:
BHP, NCM, Jingxiang, Mitsui (plus FNV, Osisko and Boliden for different reasons).
But how many other credible miners are already in Ecuador
Solgold lists BHP, Newcrest, Fortescue, Han****, First Quantum, Codelco, Southern Copper, Anglo American, Solaris, Lundin, FNV...
But surely Rio, Mitsui, Glencore, Barrick, etc can't afford to missout, because theres gold and silver as well as copper.
Remember Pierre Lassonde (FNV) said gold could hut $30,000/ounce...
There's more chance of finding some rocking horse poop than an offer being made for the company before the merger completes though?
Just think whether Sangha, Irwin, Caldwell and Co are going to stand for someone coming in for SOLG before the merger completes.
It's a non-starter.
Minus 150m debt.
If project value and full value are one and the same, full value is c£1 a share...
I'e' $2.7 billion/2.296 billion shares...
And before somebody mentions the new 180 million...
It hasn't completed yet...
So we need to consider what would happen if there was a bid(s) PRE merger
And what if its POST merger, because I don't think Sangha/Mather factored in how long it would take the merger to complete for a number of reasons, especially;
The pace at which regulators move and...
CGP shareholders being denominated in CDN receiving SOLG shares in GBP unless...
They issue 500 million Canadian shares, which I think makes everything unbelievably complex, so...
Maybe part of the delay is that Canadian investors in CGP don't want SOLG shares and that is part of the reason why all this cash is being raised...