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Surely if there had been a fundraising that failed, we as shareholders should be informed by RNS?
CD, agree with the last paragraph of your 18.44. Very annoying that we as shareholders get little clear information from the company and have to piece everything together from message boards, contacts and press articles.
Re Cascabel funding, I haven't looked back but I had it in my mind that the FNV money was to take them through both PFS and DFS. Could the fact that the PFS was delayed again and revised have pushed costs up materially? Alongside covid and inflation and the fact they keep having to do more drilling at Cascabel outside Alpala.
Well the way Darryl is going he can join Bizwas in terms of popularity or the lack of it. I understand the market metrics and the finer details of getting finance rounds sorted but this far all we know is that he thinks $25m is enough to see us through to PFS2 and Porvenir PEA but that's it. We know nothing about the cash requirements for DFS. We know the basic cash burn of the business and we know that $30m per years sorts a decent exploration plan on the regionals. So the question is... if SOLG knew that the Franco $100m would only see them through to PFS, then what did the communicate to the major shareholders regarding the funds required to DFS? That might be the big issue here. SOLG may have said, that Franco's $100m was it. That's what's required to DFS. And then suddenly it isn't. Mmm. On top of that, $4.5m seems to have disappeared which shows poor discipline. So whilst I am not trying to balance out the likes of NCM and BHP's concerns, what I am annoyed about is that all seem in total darkness regarding what cash SOLG need or needed and that's on Darryl I'm afraid as it's poor communication at the highest level. I don't think he can just sit back and watch the sp drift and be oblivious to the fact that his running the business is the reason why the stock is at significant lows. What's he going to do to turn it around? Come Darryl... step up to the plate or you're toast in just over 3 months time as is Mather et al.
Biswas is not liked at NCM so to be frank, I don't give two hoots about his opinion.
If Biswas has balls he would had made a move. Talking chop aint his style too. The only thing he has is a very small mangina!
rcgl2, I think you're wrong on this occasion. Darryl has already referenced that the 'test the market' process identified some shareholders who were not happy with the structure of the finance.
The cash box deal was done very shortly after the Franco deal as far as I'm aware. Bizwas is clearly referencing the structure that was used last time and that it was suggested as one off. That's potentially the cash box but also the Franco deal which we know NCM and BHP were angry about.
We don't have to get in semantics here... I think we can read between the lines. The Franco deal was part of the structure and strategy to reduce equity dilution. Of course it's going to be the same solution this year as well. Why wouldn't it be?? Well one reason why the royalty tap would not be needed is if the equity tap could be done at a fair price circa 35p+ levels. It seems the market might have been moving toward that (Blackrock included) but for some reason, NCM and BHP decided at the last minute to back out.
I'm guessing on the latter but there was a solid reason for Norges and Blackrock to be buying quite heavily in the early 30's just weeks ago. That reason hasn't gone away but their share purchase activity has which is why the sp has drifted down. Understandably, the likes of Norges and Blackrock are awaiting guidance from SOLG on what happens next as if equity raise on the table again, then they will participate in that rather than buy in open market.
The longer SOLG remain quiet, the longer the market will fill the gaps with negativity.
One thing that annoys me most right now is that SOLG haven't actually communicated to 'ALL' shareholders HOW MUCH cash they required to see the company through to DFS plus some exploration. All we know is that the current $25m cash pile could be stretched to year end. That's pretty poor by all accounts. Even AIM listed minnows outline what they need cash wise to see the business through the next 12 months. SOLG are playing a cagey game and not treating all shareholders as equals. Some larger shareholders know the amount of cash required. And that's out of order and needs to be addressed.
Good afternoon rcgl2, I think the reason BHP/NCM don't want a cashbox issue is they won't be able to increase their percentage, and by doing so it means we get to DFS and can then raise the money ( BFS required ).
Which means game over we go to production.
Why would they want to help us get to production.
However we can do this without them.
I mean, I could be wrong of course, but that was my reading. The actual quotes from Biswas don't seem to tally with what the journo thinks he's referring to.
But again as you say, raises the question of why BHP and NCM would be concerned about looking out for the rights of us little PIs (they aren't) and pushing for a rights issue. If they had been allowed to participate in the cash box as per last year, what's the issue? Does this suggest that they wouldn't have been able to fully participate and someone else was being brought in so as to dilute them?
And why doesn't Solg want to do a rights issue? Is it because they fear that it would allow BHP and NCM would increase their stakes by hoovering up rights shares not taken up by other investors?
Also whatever went on, it cost Ingo and Ayten's jobs. Still pieces that don't fully add up to me.
Mather not wanting or not being able to stump up the cash?
Good reasoning rcgl....so if BHP/NCM didn't want the cashbox, why didn't SOLG do a straight rights issue....?
Calm down guys. The journalist who wrote this has got confused about what Biswas was referring to and mistaken the cash box for the FNV streaming deals. Biswas is clearly saying Solg tried to do a cash box deal and shareholders were not happy with it. There is no suggestion there was an steaming deal. Just read the actual Biswas quotes and not what the journalist has interjected.
“At that time there was also a public announcement by the company that that was a one-off and that future raisings would be more along the lines of allowing existing shareholders to be part of the fundraising activity in relation to an equity raise,” he said. THIS IS REFERRING TO THE CASH BOX PLACING.
But Mr Biswas said SolGold had again sought to raise funds through methods other than share issuance over the past month. MISUNDERSTANDING BY THE JOURNO
’They chose not to do that, they went back to what happened last year and we...did not support that proposal,” he said. AGAIN REFERRING TO THE CASH BOX STRUCTURE. THE CASH BOX WAS LAST YEAR. THE FNV DEAL WAS 2020.
Stand with your feet about 18 inches apart bend down, put your head between your legs and look up. There it is - your ar£e ;)
Can someone let me know were the bottom is as I would like to go shopping!
Lunch I disagree, it is poor comms because the SOLG narrative is currently being written by others. Maybe the company is fine with that because the truth is even worse than what is currently being written.
As stated earlier, we're at an impasse and there is no way we can move forward meaningfully with BHP, NCM and Mather all holding the stakes they do, pulling our CEO in opposing directions.
Mather will now be doing everything he can to engineer a bid and a handsome payday for himself and DGR. Let's hope he succeeds.
Quady, cheer us up on a Friday afternoon, some bright thoughts.
I'll get the gloom out the way: I think we are heading to 19p, where we settled for most of 2018. We got used to 25p as the stable price, but that is clearly gone for the time being. I don't think we'll fall below 19p though. It seems to be our natural seabed.
OK, there's the bad news.
Now, if you would, paint me a picture of what happens now - the fundraise, the building of infrastructure, the actual mining, all leading to profits and dividends in the timescale you predict. I'm not going to shoot it down, I'd genuinely like to hear, in your words (not what "the company has told us") the best case scenario if we go down your route.
Sean
Sorry Lunch...in my haste I have strung two things together. I didn't intend to imply the royalty deal was a one off although it is my belief they couldn't repeat it until the final funding package and I think this is where Boliden come in...
For anyone who is till confused, this is the section from the cashbox RNS:
"The Placing structure has been chosen because of its flexibility, reduced timeframe to completion and to minimise the price risk to participants. As a result of the withdrawal of the standard disapplication of pre-emption resolutions following limited shareholder support for the same at the Company's AGM in 2020, the directors of the Company consider the use of a cashbox structure to be in the best interests of the Company and its shareholders as a whole, particularly when combined with the Retail Offer which allows smaller shareholders to participate in the Placing. The Directors have reached this decision in this particular circumstance and after consulting with and taking into account the views or concerns of certain shareholders and receiving external advice. The Company plans to adhere to the Pre-Emption Group Statement of Principles (the "Principles") in respect of the combined size of the Placing and the Retail Offer, limiting the issuance to a maximum of 10% of the Company's existing issued share capital (5% unrestricted + 5% related to specified capital investments). In addition, the Company has taken into account certain other provisions of the Principles in implementing the Placing, in particular as regards prior consultation with shareholders, that the Placing is being undertaken on a soft pre-emptive basis and that the Company's management will be involved in the allocation process. As noted above, the Company has also given consideration to the effect of the Placing on retail shareholders and will enable them to take part in the issuance of new shares by way of the Retail Offer. The use of this financing structure is intended as a one-off."
Lunch, fully agree.
Those who are saying we have approached Boliden or Franco for a deal that got rejected aren't listening to the company. Darryl stated the other day that those deals are back on the table post DFS/BFS.
Sharemarket, that could mean two things. Equity in the project, or equity in the company.
BHP and NCM PR teams are feeding crap to the media in order to try and rattle us small guys.
WE ARE THE BIGGEST GREENFIELD COPPER/GOLD PROJECT IN THE MARKET - WE HAVE NO PROBLEMS WHATSOEVER RECEIVING CASH.
B
Not quite right Fort...just bought 100k for the Mrs at 21.1132p...
Funds in reserve in case of a rights issue...
Dave,
Looking at the mining discovery lifecycle below (link) , one could say we're in the orphan stage.
I would like to hope that we continuing this journey to the next turning point reaching full potential.
https://www.visualcapitalist.com/visualizing-the-life-cycle-of-a-mineral-discovery/
Try and buy 500k stock in two blocks right now and see what price you are given. You'll be lucky to average near 25p. But nibble away with smaller 50k chunks over a week or so and you might get that 21p price level on 1m stock.
The AFR article last week or week before said that SOLG had tried to raise cash via equity and BHP/NCM said no.
Agree with the sentiments above, this is just p*ss poor communication from SOLG.
The sp is drifting but the volume is pony. It's pi's getting squeezed and some leverage players no doubt. Less than £400k traded today. I could have flipped some stock today and accounted for the entire volume. Important to keep it on context.
If it drops below 20p thats the lowest its been since COVID in April 2020...
Meanwhile the SP continues its drift to 20p or less....
Fort - using the words of Ryan Giggs, that post ' makes me as hard as a totem pole.'