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We had the same optics in Costa RIca - it was the biggest infra project in the countries history so all eyes were on it. That being said you are helped by the obscene interest rates charged in the local market. As an example if I were to take out a mortgage with HSBC in Mexico (with a good deposit) I would be paying 10% interest. I would expect BHP to lend to the local company at circa 14%. - im pretty sure they can raise debt cheaper than that.
Buddy/Slug whomever :
1) You could have copied and pasted that from anywhere
2) No one cares
3) You'll get an apology from me when you prise it from my cold dead hands.
Hope this helps.
Pbow, that's a fair point, but for whoever is going to end up mining this there is the very serious issue of optics with the government and people.
You're right bubble...just checked the official London stock exchange website...extraordinary...
At least it means no sellers...
Bid incoming...?
No trades today hmm,markets in general down though
I would have thought they would want the interest rate on money lent to the Ecuador company to be as high as possible to minimize profit in Ecuador. The tax in Ecuador is high and im pretty sure they have WHT on dividend distribution. When I worked in Costa Rica (similar jurisdiction) that's what happened there.
Q, we won't have an unconditional funding package in place for over a year, so that's not a relevant issue at the moment.
As to the broader point, have a read of articles about how enterprise value is calculated. For guidance, BHP will not wish to inherit the debt funding and will pay it off immediately (or shortly thereafter) the transaction is completed - it's bound to be more expensive debt than BHP could raise, although they don't need to raise debt to fund a deal. This will be taken into account when preparing an offer and the value attributable to shareholders will reflect this.
I'm pretty sure BHP do not want to see us taking on a pile of debt and for me, this provides a sort of back-stop date for an offer.
ship, I called HL to register my intentions.
Did you get your voting form for the egm?
Serious question Addicknt .
How does the bid situation change once we have agreed finance to construct Alpala.
Q, those are not reasons why they won't, they are mere obstacles (although I know from personal experience they are irrelevant in a serious bid situation). I am talking strategically, the tactics will be put in place to deliver - that's what corporate finance is all about.
Addicknt I can answer that in two ways and have many times.
The first is BHP or anyone else will not overpay, and although I know you don't understand the Diverse book argument, it plays a huge part in more than one way.
BHP will not get an agreed takeover, because the interested parties will not sell out cheap, and they will not make a hostile takeover as that is more than they want to pay.
So BHP's only chance of a takeover at the price they want to pay, is to watch us proceed to production and watch us fail, so they can acquire us cheaply.
The second reason is our defense.
This happens in many stages.
We can issue equity as required, the cashbox issue showed that.
The diverse book, means that it is difficult, nay almost impossible for BHP to launch a bid with everyone's agreement, and pay the price they want.
Also the FN deal sent a very strong message and got us to this point, which said we can go it alone.
As you know I have never said we won't get a bid, but I see no evidence we will at the moment, unless changes happen in the statements I have made above.
Mystique nice to here from you my friend hope your well many thanks for link and clarification
That's really helpful mystique...love the dealing transparency...why cant we have that here...?
Meanwhile bands of green on here...so glad I filtered Quady last year...
Q, there has always been a number of flaws in your argument and there's not point rehashing them all again, but there's one point which you've never been able to answer and that is; why do you believe BHP will be content to own a small minority stake in this company when they've done so much to fund it so far?
If they believe in it, which they most obviously do, why would a company that's throwing off enough free cash flow every other week to buy us, sit back and let a new competitor emerge? The idea they would makes no sense whatsoever.
Indeed, this argument extends to every other global miner, even though they don't have their foot in the door in the way BHP does.
If anyone can provide a convincing argument to this central question I may take the production view more seriously.
Seanhunter that is just nonsense.
We know no bid is happening.
Also let's wait for the funding formula for Alpala.
The only thing we have been told is minimal dilution.
So please tell me why you think the company is incorrect on this and we get vast scale dilution.
Your post makes no sense, as equity will not form a large part, and any money will be borrowed in stages, and thus be part of our assets, which will increase the NAV as opposed to the NPV.
This will give us long term growth.
Zoros without a bid this summer we will be down into the teens if not lower as the BoD start diluting on a vast scale and digging a money pit that will take decades to turn a profit. Doesn't bear thinking about. This part of the solg story is over, time for the endgame. Its now or never. We have to sh#t or get off the pot as the Americans say.
https://money.tmx.com/en/quote/SOLG/trade-history
You can scan thru 5 pages of recent trades.
We're gonna enjoy the next three weeks, and cross that bridge when we get to it :-)
What is everyone going to talk about next, if there is no bid this month??
Life won't be worth living................again
Z
Thanks Eish was showing close of 61:36usd at close but guess it was a glitch
Had a quick look Bubble and not sure what you are referring to? Sp was 0,51 and had been at 0,53 earlier. no new news released there. But, for sure we are close to "an event" of sorts! When do they present Porvenir by itself in a session?
Tsx anyone ?,am getting strange trading pattern on there can anyone please have a look and advise
Bless you cookiescrew
Z
Pad when you put it that way well then ONWARDS AND UPWARDS SOLGERS !!..WE ARE GOING UP!!,WE ARE GOING UP !!!:):):)finally ITS COMING HOME ,ITS COMING HOME SOLGOLDS BRINGING IT HOME!!:):) ,IMHO LOL!!:):)