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:
You will only have one login account. Registering with multiple accounts is not allowed. Any user found to have more than one account on this site will have all, and any future accounts suspended permanently.
Your email and password must only be used by you. If a post is made under your account, it will be considered that it was posted by yourself.
Your account nickname must not be the same, or contain, listed company names or board members' names.
While debating and discussion is fine, we will not tolerate; rudeness, swearing, insulting posts, personal attacks, or posts which are invasive of another's privacy.
You will not;
discuss illegal or criminal activities.
post any confidential or price sensitive information or that is not public knowledge.
post misleading or false statements regarding the share price and performance. Such posts are deemed as market abuse, and may be reported to the appropriate authorities.
post any private communication, or part thereof, from any other person, including from a member of the board of directors of a listed company. Such posts cannot be verified as true and could be deemed to be misleading.
post any personal details (e.g. email address or phone number).
post live price or level 2 updates.
publish content that is not your original work, or infringes the copyright or other rights of any third party.
post non-constructive, meaningless, one word (or short) non-sense posts.
post links to, or otherwise publish any content containing any form of advertising, promotion for goods and services, spam, or other unsolicited communication.
post any affiliate or referral links, or post anything asking for a referral.
post or otherwise publish any content unrelated to the board or the board's topic.
re-post premium share chat posts on regular share chat.
restrict or inhibit any other user from using the boards.
impersonate any person or entity, including any of our employees or representatives.
post or transmit any content that contains software viruses, files or code designed to interrupt, destroy or limit the functionality of this website or any computer software or equipment.
If you are going to post non-English, please also post an English translation of your post.
If you are going to post non-English, please also post an English translation of your post.
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 and Verified Members
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. 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.
I wouldn't read too much into CGP's comments. They are in debt and the only way out of that debt is to do a deal with SOLG or do a deal with another company. But it's from a point of weakness rather than strength. Meanwhile, they have cash pile to get themselves through the next month or so and only gained that through selling SOLG shares. If I were BHP... I would buy SOLG in October and then gain the rights to ENSA. I would then sit on it and wait for CGP to dry up into a shrivel. Then I'd buy their 15% stake for $7m or $3.5m as per clauses. No one will touch CGP due to their liabilities and the fact that ENSA can't be transfered without SOLG's permission. Like I said a few days ago... if it was that easy to acquire CGP, then lets be honest here... someone would have made a dart at them long ago. Instead, they have been left to fester and you can see the frustration coming out now especially in that bloke Irwin. He thought he was smart when he bought into CGP but he's now looking at a very poor liquidity situation where the only way out for him is through a sale of SOLG and CGP ENSA assets. So put all that together and it's easy to start picking a vengence style campaign against NM and team. It's just sour grapes.
BNC, a lot can change subsequent to listing though: salaries, bonuses etc. Strikes me that the Chairman and a couple of others on there (obviously excluding NM, JW and Whistler) are somewhat surplus to requirements? Haven't looked into what they get paid though.
TBTT - Think NM said that the royalty doesn’t start to be repaid until 2028 and by this time Alpala will be generating income and we can repay part of the original loan and reduce the royalty to 0.5% So I’m very much in the camp that this is an excellent deal versus raising these funds now through 20% share dilution
Tiger read your post, to get the same amount by equity, Solgold, would be giving up 20% of the company for life, or until they sell it. 1% of just Alpala, is a stonking deal. That's 20% of all earnings for as long as the shares are held. I realize it's offtake, not profit, so the two don't equate, but seriously, to say this is a bad deal for Solgold shareholders, is rubbish, as FTJNY says, this is a good deal for us, and a bad outcome for CGP. Anyone reading your posts, would think your investment was in CGP, not Solgold, and that's why your annoyed.
Hi Quady! No, Solgold are potentially giving up far more than that to Franco Nevada - it's a 1% perpetual royalty on the output of the mine. That equals a far higher percentage of Solgold's potential profits from Alpala. (SOLG own only 85% of the mine, allow for 25% profit margin after tax(???), allow for amortisation of cost of build etc. etc.) A 1% royalty can actually amount to a substantial chunk of the mine's eventual profits. Franco Nevada deals are always brilliant - for Franco Nevada and their shareholders. Not so much for their clients. I'm sure any major interested in Alpala will want to forestall the signing of the FN deal. They can raise the money for the mine build at a low interest rate just by issuing a bond.
TBTT - Cornerstone don’t want the Franco deal for one simple reason. They are wetting their pants at the thought of Solg getting to a BFS and commencing mine construction at which point they would have to start stumping up their share of capital costs. This is their worst nightmare for all the reasons NM has articulated and they will do and try anything to avert this outcome! Their views are totally self serving and definitely not in the interests of Solg shareholders so IMHO anyone supporting their proposal to replace our BOD seriously needs their head examined
Tiger have you done the maths, we are giving up 1% of Alpala, not the whole company for one hundred million dollars, we would have had to give a 20% ownership of Alpala and the whole company, to raise the same amount from equity. How on earth is that a bad deal. Getting funding on project value, not share price. Also if NM is to be believed, ( I think he is ) we have smelters lining up for similar offtake agreements.
Hi Miagi! I agree with this - a major strike at Porvernir would indeed change everything. The share price would shoot up. But major finds are, by definition, very rare events. They don't come along to order!
Quady, wrt FN they will be sitting pretty regardless of who takes it to production (SOLG or BHP or Barrick etc). It's important that this would be the case, otherwise I'd be very worried that they would pull out now. As it is, nothing has changed from their point of view - Alpala will be a mine and they will get their share, subject to final signoff...
Not quite. Franco Nevada are willing to hand Solgold $100m to invest into Alpala on extremely onerous terms (see Cornerstone rebuttal of Solgold offer for details). There is only so much security Solgold can offer to potential off takers and financiers of Alpala - essentially, the unbuilt mine itself and its theoretical future cashflows. By taking the Franco Nevada money now Solgold are using up a fair chunk of that security, thus increasing the need for dilutive equity funding later on. Potential buyers of Solgold will want to act as soon as possible to prevent the Franco Nevada deal going ahead. It's noticeable that Cornerstone made specific mention of stopping it in their press release yesterday.
The best tactic for all of SOLG's "woes", hands down, is to get a good result at Porvenir. All of a sudden, the share price is strong, takeover looking much more expensive, management looking like geniuses, Ecuadorian gov. counting the future tax revenue, financiers lining up to get a piece. Oh the excitment that will generate, will be something to behold I think.
Good morning Tiger, not only NM believes he can take this to production, but Franco Nevada do, and they have given him 100 million dollars to do it. Are you telling me FN are wrong and Foolish. Of course this can be taken to production.
I am just wondering if there’s anything NM can do with regards the corporate structure? Have something I have to do this afternoon so my research will have to wait till tomorrow. But thinking is there any way of splitting the assets SOLG hold and how they hold them?