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They need to do a $50m raise now that the market can believe will leave them fully cashed to DFS...
At 20p it could put a bottom in that we'll never see again...then onwards and upwards...
Compare these two presentations at the same Diggers & Dealers conference...and the IRRs...
https://www.youtube.com/watch?v=BitGYVYN3rM
hTTps://www.youtube.com/watch?v=crj_hEAFx80
Just keeps going down,
20P and a raise by this time next week if not sooner.
Maybe the SP will recover somewhat after that.
It can’t be a healthy situation where your two largest single shareholders are happy to see the share price on its knees
NCM and BHP didn't like it when Mather escaped their clutches and delivered a terrific Franco $100m deal. They were spitting bullets. But this time around, instead of playing nicely and doing what you would think..... being supportive and keen on an equity placing at a reasonable price... oh no... the big two want a raise done at much lower price. They want as much as they can get. And the lower the sp goes the more likely SOLG seeks an alternative which they all know will have the two majors shareholders out for their blood. So management (who should act on shareholders behalf) are likely to go with the option that secures their jobs. Perhaps behind the scenes deals are being done to ensure NCM and BHP sign up to voting all directors back in come the AGM in Dec??? There's so many ways NCM and BHP can stick the knife in and SOLG's weakness is the BoD's who quite frankly are now fearing for their jobs and nice salaries. Considering the time to get an asset sold is about 6months +... I really do think their best bet is to action a full sale auction of the business now. It's pointless trying to work with NCM and BHP as both are not friendly and do not want the best for the company. They just want the assets.
Do a deal with Boliden for $50m and stick two fingers up too the major shareholders and just tell the media that both were not interested in doing an equity raise at a fair price. Then produce PFS2 and porvenir PEA in October/November and hoist the for sale sign up pre AGM which would secure their jobs as pi's and others vote them in so they can get best deal for all.
Definitely hold some back DBW- the £100k plus trade 5 mins before the market opened this morning is an indication of what's coming I believe.
And 100k for Mrs RK at 22.62...
Ray …. Agree with that , hopefully they’ll run out of stock at some point …. I’ve taken a small amount today but will wait to see where this settles
It's very clear they want another all equity raise and that DC has been exploring alternative routes.
The question is, how far will they go to prevent DC from achieving his wish? Or will he cave-in?
There's an active 50k seller not helping matters
Q, erm? They didn't try to get us on the cheap; they simply got rid of Mather.
Yes addicknt the last time BHP tried to get us on the cheap they failed.
Seems to me BHP / NCM are trying to corner us
“BHP and Newcrest have a view on how we should be raising capital funding. Other shareholders have a different view on that
I’m willing to guess it’s Mather.. as much as i am no fan… it’s good he still has so much invested
Hope they don’t limit us to £500 worth again if they do do primary bid
Interesting to hear DC openly admitting that tension exists between the company, BHP and NCM.
We all know what happened the last time this happened.
Bought back another 50k at 22.80...holding back the rest...
Blowout US Jobs report could be good for the US economy and there's the 500 million copper fraud, but the biggest immediate reaction was the dollar surging upwards on expectations of a 0.75% Fed Funds while at the next meeting and 4% interest rates next year so...
Gold, silver and copper smacked down...
TSXV-listed Cornerstone Capital Resources (stock symbol “CGP”) was a first mover in Ecuador. It acquired the Cascabel copper-gold porphyry property in 2011, brought SolGold in as funding partner under a farm-in arrangement in 2012, and was project operator through to the discovery drill hole in February 2014, transferring operatorship over to SolGold in September 2014. The Alpala deposit on the Cascabel concession will become Ecuador’s largest mine, and one of the world’s most important copper producers, when it begins production in 2029. It also contains more gold resources than Ecuador’s largest current gold mine, Fruta del Norte.
Cornerstone retains a 15% direct stake in Cascabel carried (financed) by SolGold to completion of a bankable feasibility study and repayable out of Cornerstone’s share of dividends or earnings from a mine at Libor plus 2%, plus 6.9% of the shares in SolGold, for a combined project interest of 20.8%.
The recently completed Pre-Feasibility Study (PFS) shows: (1) an after- tax NPV (@ 8% discount rate) of US$2.9billion, 19.3% IRR and 4.7-year payback @ Base Case (Cu-$3.60/lb; Au-$1,700/oz; Ag-$19.9); (2) an initial capex of US$2.7billion for the initial block cave development, first process plant module and infrastructure; (3) average annual production of 467MM lbs copper equivalent (291MM lbs Cu, 358kozAuand1MMozAg)@anall- in sustaining cost of US$0.06/lb Cu; and (4) an initial 26 year project life @
25Mtpa, with the potential for a mine life of >50 years.
The project has already attracted investment from majors such as Newcrest and BHP Billiton, BHP having a 13.6% and Newcrest a 13.5% stake in SolGold (or~11.5% of Cascabel each) so Cornerstone’s strategic 20.8% interest makes it an attractive acquisition target says H. Brooke Macdonald, Cornerstone’s CEO:
LatAm INVESTOR
24 Q32022
“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 as well as companies willing to fund drilling in potentially large porphyry system
environments in good jurisdictions like Ecuador.”
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.
he is saying "sooner rather than later" so I don't think he plans to get to end of year before raising..... I expect a short term primary bid type scenario
SolGold boss Darryl Cuzzubbo says the in-demand copper hopeful has enough cash to get through at least the end of the year, playing down the impact of a stalled capital raising effort on the company’s future.
Shares in London-listed SolGold dipped sharply last week amid rumours some of the company’s shareholders had baulked at proposed capital raising, aimed at funding the next round of work at SolGold’s copper project in Ecuador.
Speaking on the sidelines of Kalgoorlie’s annual Diggers and Dealers conference on Wednesday, Mr Cuzzubbo confirmed the company had “tested the market” on a raising, but had not gone ahead amid tension between shareholder groups over the structure.
SolGold has had somewhat a fractious relationship with its two biggest shareholders – BHP & Newcrest Mining, who each control about 13.5 per cent of the company – for much of the last two years after a falling out over the debt-focused funding strategy of former boss Nicholas Maher.
Mr Maher also remains a major shareholder, partly through DGR Global, and the company also has a number of activist funds on its register.
“BHP and Newcrest have a view on how we should be raising capital funding. Other shareholders have a different view on that. And we need to work through what’s best for all typical shareholders. But we have time,” Mr Cuzzubbo said.
Mr Cuzzubbo said SolGold had about $26m in the bank, enough to get the company through until the end of the year, but acknowledged the company would prefer to head to the market sooner rather than later.
SolGold is chasing big copper and gold targets in Ecuador and has been the subject of ongoing takeover speculation after both BHP and Newcrest took substantial equity positions in the company a few years ago.
Mr Cuzzubbo said that, despite the ongoing speculation about potential bids, his focus remained on the development of the company’s Cascabel tenement group.
“I’m not worried about getting funding through the definitive feasibility study. I’ve had multiple calls with investors. I’m not worried about it. And DFS, by the way, and the bankable feasibility study, that then opens up offtake options and funding related to that as well. So you get to that point, it opens up other options,” he said.
“When you talk to people they always ask him about the acquisition angle. But our primary focus is to optimise Cascabel and derisk it. That’s how you build value.”
Mathers - 12:47 post is wildly inaccurate.
What will dictate anyone's return on investment is market demand for the stock outstripping supply by such a factor that the price has to increase to a level the individual finds acceptable.
Here you are Red
“Shares in the Brisbane-based, London-listed developer dropped last week on rumours of an unsuccessful capital raising.
CEO Darryl Cuzzubbo confirmed the company tested the market.
"We'll need funding for the DFS. We've still got $26 million in the bank, so we've got some runway there," he told reporters on the sidelines of Diggers & Dealers in Kalgoorlie this week.
"We did see if we could get it in the in the short term, but we've got some time."
Cuzzubbo said the company would consider a variety of funding options.
BHP and Newcrest Mining each own about 14% of SolGold.
"BHP and Newcrest have a view on how we should be raising capital funding and the shareholders have a different view on that, and we need to work through what's best for all typical shareholders. And again, we've got time to do that," Cuzzubbo said.
While the relationship between SolGold and its two major shareholders was strained under Cuzzubbo's predecessor Nick Mather, it has been on the mend since Perth dealmaker Liam Twigger joined the company in 2019.
Cuzzubbo, a former BHP and Orica executive, joined the company in December last year.
He said the first thing he did was reach out to BHP and Newcrest.
"In fact, I met with Newcrest on day one and BHP in the subsequent week," he said.
"Look, I think we've got a very open relationship. We share what we're doing with them. They saw the value in Cascabel and in Ecuador more broadly.
"Their support means a lot, right? So a lot of investors look at us because of BHP's and Newcrest's support, so it's an important relationship, and I would say it's a respectful relationship."
Cuzzubbo pointed out that SolGold's recent Cascabel prefeasibility study showed the project would generate free cashflow of US$1.4 billion a year, peaking at $1.6 billion per year, based on a copper price assumption of $3.60 per pound.
"So if you take BHP or Newcrest, or any majors' view, they're looking at this as multiple decades and they're seeing SolGold as a mining jurisdiction, not just Cascabel," he said.
"So it's a long-term game being played out here."
SolGold is targeting the release of a PFS addendum in the December quarter, which aims to add $1-1.8 billion in pre-tax net present value.
The April PFS returned a post-tax net present value (8% discount rate) of $2.9 billion and internal rate of return of 19.3%.
https://www.heraldsun.com.au/business/solgold-expansion-plans-wont-cop-capital-issues-says-darrly-cuzzubbo/news-story/ebec28b759b6d97a2bd31e41cc067326?amp&nk=91cb0bb8eb80f6bbb1d257195d4c3429-1659701942
SolGold expansion plans won’t cop capital issues, says Darrly Cuzzubbo
SolGold boss Darryl Cuzzubbo says the in-demand copper hopeful has enough cash to get through at least the end of the year.
The Australian Business Network
SolGold boss Darryl Cuzzubbo is chasing big copper and gold targets in Ecuador amid capital constraints.
SolGold boss Darryl Cuzzubbo is chasing big copper and gold targets in Ecuador amid capital constraints.
SolGold boss Darryl Cuzzubbo says the in-demand copper hopeful has enough cash to get through at least the end of the year, playing down the impact of a stalled capital raising effort on the company’s future.
22.55/22.83 in 100k...