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Rumour of going to production= minus 20% ?
Rumour of a bid = + 25 % ?
Attacked by ? for daring to post such a thing = 90%
Can someone please tell me if there is a timescale for the strategic review, and if so, when are the results likely to be known? thank you in advance.
UT 458,457 at 18.40
Levels Red...
Don't worry mike...he's one of 43 people I have filtered... but thanks for the positive affirmation. Hope it helps.
Maybe he is Massive, but only an idiot would believe what they see in board such as this on its own. He has in fact posted many useful factual pieces / articles that can be used for the smart investor to make up their own mind along with other sources
Red is using this board to fool you all...
Hilarious, shame you can’t post the trade before it appears on ADVFN
Mind you that’s because you don’t know about it until it shows on ADVFN …..lol
18.3
Bought another 98409 for Mrs...
Bubbles- I will should make for a good read.
Thanks for the extract RedKnight.
Good to see some actual research and facts back on this board !
Qalibashi,afternoon my friend hope your well,indeed if you get anything over the weekend please do post it so all can read ,good debatable board last couple od days imho
I received this from Chris a moment ago- can't wait to see what he has written as he has very close links to Solg having visited Cascabel on more than one occasion.
The question raised was about the departure of DC.
"I'm compiling a LOT of thoughts on the situation, which I'll have in the next issue this weekend/beginning of next week."
In LatAm Investor on 10 August 2022, just 2 months before the merger RNS, Cornerstone's President Brooke MacDonald (then CEO) said:
"“There are simply not enough copper projects in the development pipelines of major mining companies to meet the anticipated demand for electric vehicles and low-carbon electrical infrastructure by 2030-2050, and underinvestment by the majors in early-stage copper exploration means to maintain their production profiles and market valuations they will need to buy reserves – by acquiring juniors like Cornerstone and SolGold – to replace reserve depletion, so we anticipate a frenzy of M&A activity for existing copper projects like Cascabel...."
The article concluded...
"Macdonald expects Cornerstone Capital Resources to be bought out within the next 12 months. At present the company’s market cap stands at around $119million with a share price hovering around CAD$3.19. Yet analysts believe the recent pre-feasibility study for Cascabel means Cornerstone is worth much more. A conservative estimate from David Davidson, the Senior Analyst, at Paradigm Capital, has a $6.50 target on the stock, which he rates as a speculative buy."
So why only 2 months later did CGP sell out for $4.07/share...?
And just to encourage you, here is the Investors Chronicle from 9 May 2022:
"The deal many juniors look up to is the 2018 buyout of Arizona Mining by South32 (S32), which paid $1.3bn for a pre-production zinc-lead-manganese asset (and some smaller options) in the US. The company was valued at $1.6bn, and the Hermosa project’s last net present value before the sale was $2bn.
A similar discount for mining hopeful SolGold (SOLG) would see it taken out for £2.35bn, around 3.7 times its current market capitalisation, based on its recent pre-feasibility study for the Cascabel copper mine, which outlined a net present value of $2.9bn. "
That would value SOLG at 103p a share...
Apart from Sangha, Irwin, MacDonald and Mather making blatant statements that could be construed as idicating a takeover bid/war, there is a simple logic that persuades me.
It is based on the reason why CGP, having been daggers drawn against NM in particulart after he tabled SOLG's second bid attempt and having argued a financial case that the SOLG bid massively undervalued it, they have now thrown their lot in with SOLG/NM on terms that are a fraction of their own valuation previously.
Ther is an adjunct...and that is that they need to keep accessing capital markets to keep going rather than reduce their SOLG holding further (especially at uneconomic prices) and Capital Markets aren't exactly flooding with funding offers at the moment.
So here is the simple case:
On 30 June 2020, SOLG offered 11 shares for 1 in CGP. The offer valued CGP at 22% above the closing price on 29 June ($3.58), i.e. $4.37/share. At the time SOLG's SP was 20.85p...
In their detailed rebuttal CGP used two calculations to ward off SOLG.
One valued CGP at $12.50 a share
The other at $20 a share.
CGP's closing price before the merger was announced on 7 October was $2.63. The merger valued CGP at $4.07/share.
CGP's SP is now $4.13...
So...leaving aside the difficulty of financing a portfolio, there can be only one reason why they have thrown their lot in with SOLG at terms WORSE than those they considered derisory just over 2 years ago...the clue is in a "Gold Telegraph' article from October 2021 in which Brooke MacDonald, President of CGP was interviewed...he said:
"We think buying Cornerstone is a better way to invest in Cascabel because we trade at a significant discount to SolGold despite sharing the same underlying flagship asset, a gap we believe will close up when a major mining company acquires both companies, which we think is only a matter of time."
Assore owns 23.79% of ATL for those who missed the significance...
If that's your view lunch then don't use the BB ? simples, what will happen here will happen whether you post every minute of everyday like RK or only occasionally like shipright or italian, sit back relax and get busy living or get busy getting wound up by nonsense ...
ONWARDS & UPWARDS!!!
It would be a great pityif you left Lunch. You add a lot to this Board.
I've found life much more relaxing since I filtered 43 eejits...two in particular...
Guys you both have good points we all agree let's crack on with getting this over the line ,anybody looked at tsx price can't get it am at work
Yet....Sumitomo...and here...?
"Japan’s Sumitomo Corp has increased its share in Oresteel Investments, a holding company that owns a controlling interest in Assore Ltd, the 50% owner of South African iron ore and minerals producer Assmang."
Thats a sound post SM...white knights are usually used to defend a company against a bid. However...
I see four possible scenarios:
SOLG already talking to a prospective bidder(s)
Somebody, such as BHP, launches an insulting bid at, say 40/45p...Sangha has a party lined up to counter...a bidding war ensues with possibly others entering the fray until we do a Noront (23c to 110c)
A bid emerges from a likely successful bidder which would be followed by a bidding war IMO unless it was a knockout bd, which for me would have to be 100/200p to take SOLG out of play.
No such bid emerges as potential suitors hold their fire to see what happens (after all BHP have waited more than 2 years after they were released from their covenant), so Sangha brings a 'friendly' bidder to the table knwoing that it will trigger a bidding war.
All I can say is, I've twice woken up to find that the vale of my SOLG holding has at least doubled...this time I'm hoping for much more even than that...
Majors CANNOT keep talking about massive copper shortages down the road without finally doin g something about it...I still think there's a big game of 'chicken' being played between majors with enough firepower to take us out with 'petty cash'...
Day after day...
Market Quote 18.54/18.72
Actual dealing prices in NMS 18.57/18.59
Bid for 300,000 at 18.42...
I have to assume there is still a big buyer there...adding to the stake they are about to buy from CGP, or building a stake as a foundation for a bid...?
The vast majority of today's trades are Autobots, so I still think there is something going on behind scenes in the market.
I hope you're right red. I think the bravado on display by Sangha and Irwin either implies they are highly confident of lining up a bidder or JV partner for Cascabel (or the whole lot) or they are desperately trying to call BHP's bluff to coax out an offer from them.
If we can find a 'white knight' who is willing to table an offer around the 40p mark, BHP then have a binary choice of countering or walking away and looking at the other projects in their portfolio they've taken a stake in. At that point, I imagine the CGP lot will be urging shareholders to take the offer on the table so they can move on. Not sure the same could be said of Mather, but he might not have many options to turn to by that point.
"create companis...and then ultimately majors eeem to take them over"
Just look at Atlantic Lithium...