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You should post more often PBOW with authoritative insights like that. I entirely agree...
If you remember Fortissimo, my preferred scenario was either or both to JVCascabel and IPO Green Rock Resources ( which includes Porvenir)...
Much more complex to IPO ENSA with Cornerstones 15%...wouldn't leave much headroom in equity raises before SOLG was left with only a minority stake...
Do we think Cornerstone will be bought out before Solgold and for how much? Thoughts
No Talatum it would still be under 30%.
If BHP bid for NCM then would it not increase their holding in Solgold to a level that would be unhealthy for the the share price of Solgold. Is there anything in stock exchange rules to counter this eg requirement for BHP to reduce holding or bid for Solgold.
You turn if you want to.... the Quady's not for turning.
Code 1 trade after bell :):):).
Out of interest why would staff need to be based in Ecuador? I get certain roles but surely most would remain in home country? My old company did major projects all over the world. Core team based in the Hague the ones actually needed on the ground in the country of the Project. On my project it was like 10 people 300 million USD project for us. The Client though which was also Dutch had maybe 3 foreigners in country and for them it was a billion USD Project. The lead guy was a local though clearly a figurehead with political connecitons.
Thanks for your thoughts - makes sense to me. We are all thrashing around trying to guess the unguessable, and all are frustrated at the wait for news. As we are now in the European equivalent of Ramadhan, we may have to sit on our hands until September - or maybe not, that's the maddening thing!
BHP has a long way to go on ESG.
https://www.thisismoney.co.uk/money/markets/article-10946519/amp/Sexual-abuse-shaming-mining-giants-Rio-Tinto-BHP.html?ico=amp_articleRelated_with_images
forgot to add, majority of staff required for such an IPO on ENSA would without a doubt be required to relocate to Ecuador as that's a given. Hence some staff won't want to do that if Brisbane, London or Sydney based. Lots of commitments required when developing projects in countries like Ecuador. Many of SOLG staff are already in Ecuador so only upheaval for a few.
I think we are going down the IPO route. Spin off ENSA and then BHP can take what stake they want but will need to pay the going rate or buy chunks off other investors post IPO. Probably then list that ENSA SOLG Copper and Gold entity on North American markets with $1.5bln to $2bln market cap. SOLG retains decent stake. Then SOLG becomes a pure exploration play based on folio and we all retain shares in that. Valuation of SOLG would be boosted based on the IPO value. Exploration staff would be retained or bolstered and some staff would go over to SOLG ENSA etc. So plenty of moving about in that corp action. That scenario would allow SOLG and Mather to continue to deliver more and more Tier 1 assets but no guarantee of course. Think that's what Mather has been after for a while. He doesn't want to be taken out and see the buyer get the entire SOLG folio for almost free. New lady CFO is specialist at doing IPO and spin offs to gain greater value for the main entity. Above scenario could have conditions if favourable to BHP that they can't acquire SOLG for 24 months etc allows for SOLG to find more Tier 1 assets but would have a clause to say BHP would be able to bid if SOLG was bid from outside player etc. Agree on the NCM... think the BHP might swallow them up but I did hear that they were looking at Glencore so shows you that even NCM is small fry compared to that kind of deal. All guesses on my part but think we'll be at 50p to 60p+ based on the above scenario.
I also clocked a profile I am almost certain to be redknight's whilst sleuthing through LinkedIn yesterday.. Made me chuckle.
I agree othern. NCM share price is dangerously low at present and would have to be somewhat enticing for BHP to have a crack at them. They have quite a few decent copper prospects and heaps of gold of course. It would make a lot of sense imo for BHP to bid.
With all these posts suggesting possible bids, wouldn’t it make more sense to suggest a JVA between Solg@ Alpala and one of the heavies invested in Solg?
Solg have done all the surface work/ PR / licences/ government liaison, now they need a major to partner up for the actual dig.
And it avoids all this speculation about rejected bids and offers.
Z
snowman, me too.
Addicknt, I see Boliden as looking for an off-take agreement. Not a full-blown takeover.
Would love to put a face to some other posters here.
snowman, yup, looks like it! Whoops! Still, nice to be able to put a face to the name.
There was an interesting comment from the bloke at Boliden. "Thanks for your co-operation, Ingo".
I am actually a bit worried about people being forced to leave in key roles without any clear reason for us outsiders. Is it some power play games in a corporate restructuring or is there something more seriously wrong?
(btw, RK1 you might have given away your identity with your comments regarding and on LinkedIn.)
Agreed...sound...
If a bid comes in at what we perceive to be the low end, 40-60p range, and no other counter-bids are made, then hopefully the board would recommend shareholders not to accept it on the basis that it undervalues the company. But in the absence of any higher bids, the basis on which they would say it was undervalued has to be that Solg can and will raise the financing to take Alpala to production, and also unlock significant value from the other priority targets.
So in that scenario funding seems key. They can't just say they can fund it, like they have done up to now. They will need to produce something more concrete. Which means it's an interesting moment to part company with the executive who has been in charge of the funding plans to date, at the same time Nick Mather is telling investors to "expect Solgold corporate actions" implying that it could happen soon.
It's also interesting that someone like Lisa Parks who was involved in delivering the Alpala PFS has been let go now (I am assuming it wasn't voluntary on her part based on the Linkedin post and comments). You would have thought the same team that delivered the PFS would now be working on the promised PFS upgrade which is due within a year I think, and then the DFS which is due next year.
We also have no regional drilling going on since January, and the SP has been up into the 35 and above area twice this year but on neither occasion did the company take the chance to get an equity raise for regional exploration away at what could presumably have been a pretty favourable price.
It all seems to point towards them monetising Cascabel soon, either selling it, JV'ing it or in some way splitting the company up to separate ENSA from the rest. I'm guessing that would leave the remainder fully cashed up to explore and develop the other priority targets so no need for any more fundraises in the near term.
I could be completely wrong of course, but it feels like something is brewing and I don't see how we can go on with another year/18 months of the same as we've had over the last few years.
There's a deafening silence and Ingo has hinted at a strategy change...
Meanwhile because of my faith in Ingo I have bought £10k of 1SN where he is a NED....Tin is the thing and their latest presentation looks like it was created by the same firm as Solgold's...
Bozi,
You say your aware of their history, well ask South Americans what they think of BHP. I have wondered if they would try to side with someone else and finance them to take over with BHP being a major holder in said company? Maybe even a deal with Solgold keeping BHP’s involvement a low profile, who knows.
If I had a crystal ball I would answer your question, what I wish for and what I get are two different things, I hope for a good return on my money I invested here.
I like the sound of around £1.70, but we shall see
Atb
Agreed Bozi, I cannot be sure. But looking at the value in the PFS. Okay we only get 40% of that.
We have to start attributing value to our other holdings.
That won't start to happen for Porvenir until year end. So I don't see us not adding to the calculation.
Cornerstone and Irwin have been unusually silent for so long…. And the cornerstone bb is silent too.. not even wild speculation or mad personal arguments and insults