SolGold Share Chat (SOLG)

Good afternoon Runwiththebullzz, not sure this is the answer you want. but unless you trade the price of oil in the commodity market, that will mirror the price to a certain extent. As someone who has traded oil and gas shares for over 30 years, I don't believe oil is a one way bet. Yes after Corona Virus, people will drive cars more often, but flight is going to be the last thing to be lifted. Also we have recently had a 10% cut in production, really no effect. We also have the conversion from oil and gas to electric, hence why a lot of us back Solgold. If I wanted to benefit from any price hike in a bounce in the oil price, I would invest in someone like BP, as their price is on the floor, like so many other companies. Failing that a unit trust, But guessing you don't want any of these options. An ETF is probably your best option, as future prices on the floor, and gives you the exposure you seem to want, but very risky. Good luck.

Anyone know how you invest in the oil price recovering?
Not the spread betting... like an ETF or something that mirrors the oil price? I can’t seem to find anything on HL

perhaps that's the only way to get CGP issue resolved - sell

It's still very uch unclear on what might be sold or what might be the basis of funding security. Are we talking the entire folio or are we just talking about Alpala/Casabel??

Short trm finance on $150m is fairly straight forward but project finance of $2.5bln+ is a problem when CGP hold 15% and have no visible means of funding their way through to development.

CGP issue still the elephant in the room for many financiers.

"For SOLG the key trigger to sell Cascabel will be the creation of the PFS. I don’t believe SOLG want the costs or concerns of creating the final Bankable Feasibility Study"
Forgive me postingthis, but the FT article chimes perfectly imo with my blog that I wrote back in november...
The key point for solg was \is always going to be the time period between mre 3 and pfs.
Any funding for the dfs will be conditional on the pfs. Once that funding has been legally agreed and conditions met it will be a pain for bids etc.
The amount of noise that solg is making 're funding package might well be an indicator that this is being used to draw out and maximise bids...
I still think that solg will be a producer but as a minority holder of cascabel.

're cgp...It has it's annual results to produce by end of april. What better time for solg to launch a bid for either CGP or just ensa than when the company's just said they are doing sweet fa and have no money? And prior a general meeting when solg friendly shareholders can give CGP management a roughing up.

Solgers we need to remember the main thing.

NM said we may sold for the right price, if Bidders come in with the right price it will be Solgold.

In addition, we haven't heard much about Blanca, could be our trump card re boot trapping if the grades and volume are as expected.
Mines are bought all the time, bids could come at any stage, although once we get funding for development I'm not sure how that would work once terms have been agreed re the loan for any major making a bid? How does the loan pay out if we get bought after the funding is agreed?
If no bids come before funding is achieved then I would say our chances of going to production then increase significantly.

Good afternoon addicknt, as I have said before, you may be right. Where I do disagree is that this is not in the hands of Solgold. I think it is. Look at the share book, and who owns what, nobody is going to make a bid unless some consolidation takes place, then we have the problem that if some consolidation takes place, that two or more parties act in concert and we get delisted at a fraction of our worth. Personally I don't believe this will happen, as there are many ways to defend this share, especially now we have Citi on board. Also if we get the 2.95 billion of funding, then its over, we go to production, because our major shareholders on the share book, will not sell unless the price is above market value, and no major will buy at a premium to market value.

just because NM wants to take it to production does not mean the majors will allow this to happen.

it doesn't really matter what defensive measures we put in place, bids can come at any time thereby freeing BHP to counter bid.
Unless they are happy with a minority stake in the mine, which they may be knowing Solg will repeat the model on other projects through out the county, there by BHP and NCM may be content knowing they are part of it.

We are all biased depending on what we would prefer individually, the fact is none of us can call it at this stage.

Monte, as I and many others have said previously, it's not a question of what the management want; it's what others want, which will determine the outcome.

the market down today, we are holding up very well.

In any scenario, if we can show the market we are able to raise 3 Billion .

Majors want 60 Billion assets to have a longevity for their assets. I believe next few months will be very interesting.

Gl all

It's pretty clear to me, that the board wants to take this to production despite what so many on here say is just a ruse.
They don't want to sell this and never have. You don't go to one of the biggest investment banks in the world to defend you, if you are actually trying to sell the thing.

Good afternoon all, I have read the FT article, and can see no mention of anyone bidding. In fact it says the converse, Its saying it is going to raise 2.85 billion, I think it means 2.95 billion. And that they have engaged Citi for advice to defend against any takeover. This is about building the mine and going to production, and how to avoid a takeover. In fact it is just repeating what we have been told.

Perhaps Bhp will offer significant premium to current share price to increase stake like they paid 45p

Given that BHP can't bid unless another comes in before October (as is stated in the article), it would seem like the board think another competitor is going to try.

This won't stay down at 20p for long now.

Australian rival Newcrest Mining, SolGold’s second-largest shareholder, did not respond to a request for comment. On April 17 SolGold said it had received “material offers for funding” from global commodity traders and smelters in exchange for guaranteed supplies of metal concentrate from the Ecuador mine once it starts producing.“Offers included the provision of both short-term and longer-term capital with proceeds available for studies, mine construction and cost overruns as well as working capital during ramp-up,” it said.

For those who cannot access it:

Copper group SolGold has strengthened its defences against a takeover, appointing Citi for advice and fundraising as big rivals eye acquisitions amid the global economic downturn caused by coronavirus. The London-listed explorer is a prime target due to the potential of its undeveloped copper and gold project in northern Ecuador, people familiar with the company said. Last month SolGold said it was in talks to secure the $2.85bn it needs to develop the Alpala project in Ecuador, including an immediate $150m for a definitive feasibility study of the project. The company says the mine will start production in 2025. Citi has been hired to help with the fundraising and also act as a defence adviser, a person familiar with the company said. “We’re building a company that’s as important to the development of Ecuador as BHP was to Australia. I think that's just beginning to sink in to the world’s majors and financiers,” said Nick Mather, SolGold chief executive. The world’s biggest mining companies are all looking for opportunities to expand in copper because of its use in clean energy technologies such as wind turbines and electric cars. BHP, the world’s largest miner, is SolGold’s top shareholder but under a standstill agreement is restricted from buying new shares and going beyond its 15 per cent stake until October unless there is another bidder. In February BHP’s new chief executive Mike Henry said the miner needed more “future-facing” metals such as copper. A month later BHP’s chairman Ken Mackenzie said the company was in a strong position to make acquisitions if there were opportunities because of coronavirus.“I’m not sure if there will be any opportunities that will come from this, but if there are, we are actually in a position to act,” Mr Mackenzie said, according to Reuters. Coronavirus business update in SolGold have fallen 48 per cent over the past year, giving it a market capitalisation of £381m. That compares with a 30 per cent fall for the FTSE 350 Mining index. Copper prices have declined 16 per cent this year — to trade at $5,211 a tonne — due to a collapse in demand because of the spread of coronavirus. BHP and Citi declined to comment. Australian rival Newcrest Mining, SolGold’s second-largest shareholder, did not respond to a request for comment.

“I’m not sure if there will be any opportunities that will come from this, but if there are, we are actually in a position to act,” Mr Mackenzie (BHP) said, according to Reuters.

BHP are in a position to act!

The gloves are off.

Let the bidding war begin!
GLA

they are trying hard to keep this down...

“We’re building a company that’s as important to the development of Ecuador as BHP was to Australia. I think that's just beginning to sink in to the world’s majors and financiers,” said Nick Mather, SolGold chief executive

Things are certainly hotting up - Solg target for takeover.

Solg taking defensive action.

BHP poised to make a move?

Imagine this will really get going soon when the market picks up on this

https://www.ft.com/content/86119f6e-2453-44ee-955a-8737be98ffa9

Surprised not above 20p yet