We spoke to new Sterling Energy CEO Tony Hawkins about the latest changes happening at the company. Watch the full video here.
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Very well put, Red.
Nobody could be surprised at Newcrest withdrawing (they may in fact have been asked to leave but offered the chance to save face by resigning). In any case why would you want a major player and potential predator in the Board room when you're discussing bid defence strategies.
Furthermore, Mr Biswas didn't agree with NM's funding/financing strategy anyway, as he stated clearly in February:
That article also implies that Newcrest may well have been a 'streaming' prospect and may have been miffed when Franco Nevada go the gig.
So how does all this play out..."should I stay or should I go..." (Newcrest).
BHP are clearly not there as a friend at court. We should be in no doubt that they are a potential predator, maybe as soon as October, hence the need to get the PFS out in September. They are also currently seeking to raise $1.5 million by selling out of coal mining...maybe also to raise a war chest?
But Nick has forced Newcrest's hand. Are they in for the long haul? Will they sell to the highest bidder? Or will they bid themselves?
We may get to know well before October, as this global game of 'chicken' plays out...the first mover will almost certainly NOT be the winner unless they go for a knockout bid. That would have to be of the order of 125p a share and would be a gamble on the value of the other 72 projects, as least one of which Nick has described as prospectively being even bigger than Alpala.
Nick is the ringmaster...he most know in his heart that SOLG cannot remain independent, except possibly until October. Of course he has to 'talk the talk' (and we will all hang on his ever word tonight), but he can retire a VERY rich man if he plays his cards right, without having to wait 7 years for the rewards, when he will be approaching 70, in a world where life has become far more precious in the last five months and CVD is booming in his home state...
So in conclusion, other things being equal, we should expect to see a growing stream of good news running up to September, starting with the Franco Nevada signoff...
Unless it is interrupted by "the company has received an approach which may lead to a bid..."
For the time being it is right to focus on Newcrest. SOLG no longer need their block caving expertise.
Sandeep Biswas' next move may well hold the key that unlocks our collective fortunes...
AIMHO as usual...
A rational perspective on Newcrest..."should I stay or should I go..."
SOLG has appointed Citi to advise on bid protection...NM wouldn't spend that money if that wasn't his greatest fear, so...
The focus of everything he does from now on will be twofold:
What maximises the value of the resource and the best prospects for funding the mine(s);
What minimises the risks of an unwanted bid. He cannot possibly prevent any major from bidding, including BHP after October, so he has to either make it as difficult as possible or do all he can to maximise the value of his portfolio of projects.
The current share price is irrelevant. Investors are driven by fear and the MMs unsurprisingly marked the price down today knowing there would be panicky holders who, for example, would worry that Necrest would dump their holding...
Yeah that's likely...not! Do they think Sandeep Biswas is that stupid, having come all this way?
Newcrest NEEDS new gold resources, because their current production is declining (Havieron and Cascabel) and also NEEDS cash, viz their fundraising in April:
So of course, one way would be to sell their SOLG stake, but at 20p? Nuts! There are at least nine prospective buyers of SOLG, especially Barrick and BHP, because existing mines are depleting fast and the majors have to look to the 'minors' to restock:
So if Mr Biswas does want to sell his SOLG holding and get the best price, thereby raising the resources he needs to develop e.g. Havieron, the simplest way is to make a bid for SOLG. This would have to be a minimum of 60p because otherwise it would not be taken seriously, but he must know that it would trigger immediate counter bids at higher prices and he could sell to the highest or most likely winner...
Now some people have described SOLG's action in not letting Newcrest or BHP into the placing as a serious mistake...what...?
Why miss the opportunity to reduce their percentage holding, thereby reducing the size of a prospective 'concert party' holding; also NM was not only able to feather his own nest and reward people like ourselves, but also to bring new investors on board.
Newcrest don't have a right to a Board seat with less than 14% and surely their main reason for being there was 'block caving' expertise, but also NM maybe never saw them as a threat.
When Malcolm Norris first stuck the pin into the map of Ecuador as CEO of Solomon Gold as it was called then The statement was Solomon Gold want to be miners. I have not seen an official statement retracting that direction The entrance to the mine has been decided and all the signs are that Solg will be miners. NO sale No takeover.
Weeks ago if not longer
We all Knew Newcrest where miffed about not being consulted regarding placing
Hence are new specialists appointments announced today , these guys are not sitting around looking for the next job that comes along , this has been a well thought out plan for the future mine
We have no need for Newcrest block mining expert now , he brings nothing new to the table
Our new recruits are very well experienced
But the big clue is the Franco deal we are going it alone without the big two , imo
BHP will get one last throw if the dice come the lock out period terminating
GLA LTH taking advantage of slight negativity in the SP
Solg going to production, NCM to be taken out.
A quick calculation, I make it that Newcrest hold approx. 282M shares for approx. £57.5M, and hence have an average of 20.3p
I think this was a long time coming.
BHP have remained silent over the past few months whereas Newcrest have thrown their toys out of the pram because of various issues.
We will be taken over very soon. As soon as 30/9/20 is up we are game over.
I dont think you get the message Solg will not be sold but Will go to production
What price did Newcrest buy in for can’t remember but more than 20p, in that time the only thing that’s changed is the price of cold and the future of copper. Newcrest have their hands full with Havieron and Red Chris they’ve probably agreed to let Bhp get Solg and get they’re money back plus when the bid arrives. Hopefully Newcrest will hang on to their shares so we will at least get a decent price. Market should see sense in this development.
Was about to post, and realised Talatum at 08:44 pretty much nailed what I was about to say. Only truth that matters is the market reaction to the 2 RNSs. FTSE 250 down .85% Solg down 3.81%.
I thought this deserved more
NCM out the way
CGP pack your bags
Onwards to pfs
Good news today.
Clear signal of intention from NM.
Well done Solg.
Head in my hands, wish now I stayed away from this. Will this ever come back up soon even with good news tonight? Why is it so bad here even when there is progress?
Ice - "So all of the chosen targets have been chosen for an initial gold bonanza imo.all near surface, all cheap to extract. Obviously pointing to a secondary strategy beyond cascabel."
The RNS from Monday states this after the regional drive header:
"The Company wholly-owns four other subsidiaries active throughout the country that are now focussed on thirteen high priority gold and copper resource targets, several of which the Company believes have the potential, subject to resource definition and feasibility, to be developed in close succession or even on a more accelerated basis compared to Alpala."
Newcrest were always going to be second to BHP. This is now between BHP and Barrick who we know are doing some of their own internal work originating some investment ideas with exposure to Copper and Gold.
Don’t be surprised to see Barrick as the new shareholder on the register by September.
"Great news. Let battle commence!"
inclined to agree with you about this great news and other great news comments here. what worries me is that surely the market must also be aware of all this great news. Why then is the share price not reacting?
Does anybody have the link for the webinar. Thanks
Missed a bit..from all the targets they will know from xrf and visuals what they have within 1-2 days of drilling. So I would expect some very quick tasty visuals.
Something to throw out there .
Doing a bit of digging into the 3 new regionals.
Below is the saw sample pre cascabel drill from 7 years ago.
The best results were 34.35m grading 0.46% copper, 0.19 g/t gold and 6.97m grading 1.07% copper, 0.45 g/t gold (Table 1).
How we have the saw sample from Porvenir at the announced drill location site.
147.83m @ 0.64% CuEq (0.43 g/t Au, 0.37% Cu). This intercept is open-ended.
• Including 82.63m @ 0.96% CuEq (0.71 g/t Au, 0.55% Cu).
What's interest for me is how much better the gold grades are at porvenir than cascabel. Target 15 at POR is also pretty recent and I imagine they jumped out of their skins at those gold grades. Also the holes at at max 400\500m atm so a higher grade cascabel at surface. It might go deeper but plan is easily low cost open pit.
Now moving to la hueca.
An interesting bit here are the surface B type stockworks. They occur at high grade to sit at the top of the intrusion, again imo gold bearing near surface with a potential high grade copper monster underneath.
Finally Blanca a pure gold play. with its bulk trades at up to 6g. Obviously more in the veins, but with a reasonable length avg.
So all of the chosen targets have been chosen for an initial gold bonanza imo.all near surface, all cheap to extract. Obviously pointing to a secondary strategy beyond cascabel.
Great news. Let battle commence!
Got to feel slightly sorry for the new appointees, this job might be one of the shorter periods on their CV.
Looks like the board has just made two great appointments moving us towards development - Newcrest expertise no longer required!