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addickt it suggests to me that he knows something we don't know about another predator(s) lined up...
What I find stupid beyond belief is that BHP would complain about an investment worth 0.04% of their MCap that they could have bought for peanuts starting 2 years ago...
Similar for Newcrest...just pathetic sour grapes...
RichBetter...we're out of cash now...?!
What planet are you on?
$50m cash raise plus probably $20m left gives enough to last until end 2023 or beyond at $3m burn per month, even if we do more drilling...
But we won't need it because this is being sold...
Bozi...you do sometimes post unsubstantiated rubbish...
Stick to the facts...
The strategic review is a smokescreen for a sale of SOLG or Cascabel...
I think a decision should have been made 2-3 months ago to sacrifice one asset to develop the other.
Whichever way round that would have been would depend on what interest there is and at what level.
After all, if we're trying to entice BHP into making a move, surely the play should be to actively market one of our top 2 assets and potentially the flagship one?
I do think SolGold can have a crack at Porvenir with the proceeds from Cascabel, assuming it's going to be realistic to bring the infrastructure up to scratch.
Instead we have two assets and are moving painfully to progress both.
And there is the reason why the new lady cfo and a flurry of other directors left under a cloud. She had clearly done her job but it must have been vetoed in some way by dc… who’d a thought it :))
Labour could teach Solgold a thing or two about budgetary responsibility after our funding farce in 2022.
In fact, statistics are showing they could probably teach the tories a thing or two too. A conversation for another day in early 2025 though, by which time I'm sure you'll be well behind Tice and ReFash -if you aren't already that is...;-)
You don't need to tell me that RichBetter. But Marshall initiated the stripped down version, rightly or wrongly.
Plenty have been lauding Cazzubbo as a BHP stooge in recent days. I called it at the time he was appointed but was told i was being daft.
I can't do anything but call things as i see them when i see them.
I'm invested by the way but nice dig. Don't let that mask slip. ;-)
More optimistic here too Add.
Won't dwell on the details as it's all been said before, however there is now consistent narrative on some sort of corporate action in the near future from individuals who have serious skin in the game. I know many have had their hopes dashed before, however the timing is now right and there are now so many important factors now in place which make this time different. In these economic times, I'd certainly rather have one in the hand, than two in the bush.... so let's announce that we're up for sale and get this thing actioned off. C
Irwin been right many times …..
“First Step - Friendly Merger with Cornerstone - COMPLETE, Second Step - Raise US$50 million in non-dilutive financing - COMPLETE, Third Step - Realize full value for SolGold Shareholders - IN PROGRESS. Impressive positive progress, congrats!”
“I have known Scott Caldwell for a lot of years. He has the skills and I believe he will do the right things for SolGold shareholders. He has been on the SolGold board before, so knows the challenges SolGold faces. Onwards to Step #3”
Cascabel and Porv…. I have a hangover
For Mather to continue exploration, IF that really is what he wants, then Solg can repackage a chunk of the regionals to a new entity… (didn’t Ingo begin to create an investment vehicle?) and he can buy that, probably with partners, leaving Solg with Cascabel and Alpala, to either sell or JV.
If someone offers us too much, then the answer is obviously yes. But otherwise, I would prefer the exploration properties IPO'd to us remarkably long-suffering longs. And dgr. And the ultimate cascabel buyer, I guess.
Those licence blocks Fort, whilst in demand, won't carry much value until a resource is declared in line with JORC requirements.
So we'd have to sell Cascabel or Porvenir and use one to fund the other and the remaining folio.
I think now he holds 100% Solg shares, you can assume that cascabel auction becomes a Solg auction.
I'm still pondering on hoe Mather gets to continue exploring but guess that will become clear post strategic review.
There's a lot in the folio that the market and buyers like to value at zero but the truth is ... drill ready licence blocks hard to find in Ecuador and be interesting to see if the exploration folio gets flogged off leaving solg with just ensa.
This article from 2020 is worth re-reading and is very relevant to where we are today:
https://www.afr.com/companies/mining/solgold-seeks-funds-ahead-of-bhp-s-unshackling-20200211-p53ztp
“Cornerstone has argued the Cascabel project should be auctioned to the highest bidder.
Prominent Canadian mining investor Bob Sangha confirmed this week he also believed Cascabel should be auctioned rather than SolGold take the long and expensive journey to mine development.
Mr Sangha is the biggest shareholder in Cornerstone with more than 16 per cent and his company also owns more than 1 per cent of Solgold.”
When can we realistically expect to hear the results from the strategic review?
RichBetter - I might have this wrong but I think you might have the wrong end of the stick.
Had we gone lock stock with the 100% of the reserve, i.e. full development, then the capex would have been $5bn+ for ultimately very little improvement in economic output. Totally unrealistic.
Plus, why would you pay an extra $2bn up front to develop it if it isn't going to yield anything extra?
My interpretation of the PFS optimisation (and this may well be me with the wrong end of the stick) is that reserve usage would start to be built back up and additional capex phased into the plan, drawn from phase 1 revenues. So, back towards a multi-generational life of mine but with a more gradual phased approach and ultimately slower ramp up.
Also, it was Keith M who advocated that approach just before the initial PFS under Mather was going to drop, hence the initial delay whilst they went back to the drawing board, but I do get why you think Cazzubbo did this intentionally for BHPs benefit. Just not sure I agree.
Addicknt - I feel better now than I did in August and September (I couldn't have felt much worse and I think that came across) but my thoughts are still conflicting.
I'd try and sum it up like this:
Cards on the table, the options right now as they appear today are:
1) Short term transaction falling out of the strategic review, as DGR says, to "restore" value for SOLG shareholders.
This language is very deliberate IMO. The strategic review and short term deal puts us back to 30-45p IMO. I have the rationale for this in a post yesterday so won't labour the point.
2.) Medium term value creation. This probably pushes us out to 2025/26, potentially the early ounces and pounds of Tandyama America. Much more risk involved if we assume the wider markets will be a write off in 2023/24. I don't think you could be fooled for thinking that a DFS doesn't get seen until late 23/early 24 and financing would very likely have to wait until markets start to recover.
3) long term value creation - simply holding on. Fixing the boardroom, meeting our milestones, further enhancing the opportunity in Ecuador working with the government in office. Creating a settled company that can see true value creation ahead, wait for it and execute to obtain it.
My confliction comes from the apparant thinking from some that we can achieve the value creation from 3) in a timeframe associated with 1). By the very nature of each outcome, you can see that risk grows with each one and that factor alone is going to place a ceiling on what we can achieve.
I'm resigned to somethinf barely acceptable will materialise from the strategic review and we'll all move on, some happier than others. We'll then find out closer to 2030 whether our collective decision to lobby the company so forcefully now will be the right one. Some won't care and that's fair enough, but I do think they'd be hard pushed to find another opportunity like Cascabel and Ecuador in the resource space anyway.
More optimistic.
We have more cash, hopefully the merger goes smoothly and we then have a simpler structure for all options going forward.
We are not holding all the cards, nor has anyone played a blinder. Sick of hearing that. We are, in effect, in a position whereby we either
a) Sell off future value tiny piece by tiny piece to pay staff and keep the lights on
Or
b) Go cap in hand back to our long suffering shareholders and ask them to further dilute their holdings to pay staff wages and keep the lights on.
Neither option is beneficial to the small shareholder, and meanwhile BHP and other majors can, as they have done for years now, just sit on the sidelines and let it unfold.
Mathers - of course the original offer for Cornerstone was a Mather initiative but do you not remember the disdain that CGP shareholders had for the terms and for the charade with the French translator? It was a bit of a farce if we're being honest with ourselves.
There has obviously been some mediation between all parties at SOLG and CGP and that much was RNSd last year. But as Better Rich points out, it wouldn't have been a deal struck up overnight. There would have been a case of all compromising and that would have taken some soul searching. DC would have played a part.
Yep, couldn't agree more and mirrors my post from yesterday MF. Hopefully a slow steady build in stock confidence and price over the coming months to get us back to a market valuation of around 700 -800 million then let the bidding begin :))
have a fantastic weekend all, I know I will
For people to react the way they did in the news about BHP there must have been much more we don’t know.
D.C brought Cornerstone and Solgold together did he? That was a plan by NM years ago, D.C hired and fired people, was this to destabilise Solgold and make them look incompetent?
D.C was quick to get in on the Ecuador mining community as a (*******) let you fill that in, D.C fired and shown the door, caught with his pants down?
Solgold have settled in Ecuador, they have shown respect for the place and the people, maybe D.C was trying to do deals on behalf of BHP and some loyal local government Ecuadorian informed Solgold.
That is my take on it from what I have read, plus filling in gaps, maybe wrong but going like that smells of dirty dealing. The market seems to be happy enough as to what has happened or we would have seen a much bigger drop than what happened imo.
Hope Solgold now really start stamping their authority on things here, show all what they have and the value of investing in them, bring on news of all the work of the geologists who have been looking at all the tenements.
I feel more confident now in Solgold than I did before, they have woke up I believe, anyway that’s my take on things
Atb
Just out of interest, following the events of the past few weeks, what is the sentiment of people on here? Are you feeling more, or less optimistic about things?