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It's funny as there wa sa city rumour that BHP and NCM were going to make a bid. Redknight, we've been here before. You sell a few shares and then everything is all dire straits. You buy some and everything is all fab again. See how that looks?
They haven't tried to raise capital yet so you're rumour is untrue and unfounded. I know this as the new lady started just a few weeks ago and has been charged with exploring various options for finance. The cash pile is $26m which as you know will last for 4 months if pushed. There's no rush and the new lady will deliver. She's very good at what she does. Better than Ingo by a country mile.
Great find coldcut. The shareholder unrest begins! You'd think CGP will feel the same way.
Jeez.. is that genuine? I could have written that. Ouch.
.. are not very happy with the latest development: https://www.rns-pdf.londonstockexchange.com/rns/0991U_1-2022-7-28.pdf
Not flapping.
If your 'back story' is correct, why issue the RNS at all...it doesn't add anything...
But where have you ever seen before a naked statement that a plc HAS to raise money...$100m wouldn't be far off the mark...it makes them a hostage to fortune.
If the City rumour is true and they have tried and failed once (probably at an unrealistic price and/or with the copper price below the price assumption in the PFS), then their NOMAD or the lead banker for a fresh attempt will have told them to 'kitchen sink' everything in that RNS...
And the SP of any issue has to be at a low enough price for the market to believe that, subject to the market in general, this is the bottom and you'll never see that price again which to my mind could even make 20/22p a tad optimistic.
No I'm not talking my book...I would be delighted to be wrong for all the investors like me who have waited 2,3,4,5,6 years or more for the holy grail.
Meanwhile I'm surprised that nobody picked up on Taunton's statement that construction at Alpala won't begin before 2024...
How much longer must we wait...?
So useless he could run for our new PM
Fortissimo -
Any other routes will appear untenable or will never reach the light of day.
Almost 10% down after a few hours .... the market understands that this is going down.
Fortissimo -
Everyone in the industry dislikes NM and wold love to see him humbled.
Money and revenge is everything.
Cuzz is a wolf in sheep's clothing. He appears the right guy to do the right thing.
Get him in, fluff the fundraising until it's done at 20p. BHP buy a swath and come in at 30% ownership, then bid offer.
Whole thing tied up at under 50p per share. Cer-ching.
Relevant insiders and quislings paid under the table, the rest of us left shocked and shorn.
Fortissimo, of course what you say makes sense but it still doesn't hide the fact that we are in a very bad predicament here, one that either is resolved by a) a takeover or b) the BoD coming up with a cunning plan for moving forward.
NB: Simply ensuring that they stay in well paid jobs for the foreseeable future is not my idea of a cunning plan.
Quady you got any shovels!!
Quady you are delusional if you think they gonna take this to production they can't even afford to continue drilling ATM cash burn it needs selling imho a fund raise will send this to 10p at best and add millions of shares to the register,then they consolidate destroying the share price Franco will be concerned now and we only got 12 months left to get this to mine as the Ecuadorian government permit reads or they take control
It's funny you know... we can talk about the reality that a fund raise will be required to see through to DFS and we have all done that on these BB's for last 3 to 4 months. The market knew about it. Investors knew about it and yet when the company confirm the reality (which is the professional thing to do) there seem to be a few on here that suddenly appear surprised. Like I said a while ago... the reason for the Franco deal was that BHP and NCM wanted a cheap placing in the 20's and NM was having none of it. At end of the day, if BHP and NCM want to gain another 4%+ each then they'll have to pay north of 32p imho otherwise a royalty deal with Boliden or another looks better value.
Equity raise is the norm but is usually for a $40m stake and sorts the exploration. It's minor. The amount required for DFS is unknown. Could be $50m or could be $100m or could be $150m! Who knows? But as per usual this BB runs riot on speculation. It's pointless. The irony is, the $40m raise will help drive the sp through exploration catalysts so it's win win. The new lady may well be sorting a nice little partner deal out with Lundin, Solaris and Codelco. This RNS ensures that all those confidentiality ties flying around SOLG are maintained but also that 'we' all know for sure that something 'corporate' is coming. Astute investors knew this anyway... but stock market rules often require companies to deliver greater clarity these days on 'going concern' accounting procedures and my guess is that this is better than reading it in the MD&A. I'm chilled and fully expected this. Question is... will SOLG go down the Boliden route and draw BHP out to bid? That might be what's coming next and the sp will be 40p+ imho if they announce a boliden deal as everyone will assume BHP counters it. Game on. Stop flapping!
Quady you are quite the Pollyanna - you can see the good in everything, which to be fair is not a bad quality in a person.
But even you have to see the reality here - if we are finding hard just to raise the basic cash to survive for the next few months, how the hell are we going to raise the enormous amounts required to even start going into production?
There is no point putting on a performance if no one in the audience believes it.
We have painted ourselves into a very dangerous corner here - talking big but acting like a cornered mouse.
In any other share I've been invested in, I would regard our position today as the clear beginning of a finance death spiral. Of course, we have the reality of the vast resource we own to act as a theoretical NAV that will prevent too much damage, but what are we offering the market other than a string of begging bowls stretching out into the future, each one weakening the share price which in turn weakens our position.
We've been thumbing our nose at the big boys for years - don't you think they will be happy now to see us dig a money pit for ourselves and then "rescue" us by taking the whole thing off our hands in a fire sale once we get in too deep?
Also on the other side of the coin you cannot defend a bid with a hole in your war chest !
Fortissimo - it is you who is behind the curve.
The critical difference is that Nick was in charge when the Franco financing was done. Now we're led by the "friend of BHP" Cazzubbo.
There's less than zero chance of a streaming deal with Boliden. And that's probably now a bad outcome.
Kat2008 is probably not the best a million miles away from the truth. This could well be an opportunity for a major shareholder to consolidate and strike.
As I said yesterday - 40-50p. Msthersfinger - forget your £1.70 mate. Not a hope of half that.
RNS was posted at 7:47, I would have thought this should and could have been posted at 7:00. !
Personally I think if Nm had been in charge and the bigger players would not partake in the raise at his price he would have gone and got the finance somewhere else like he did with Franco whereas this seems to be a lightly veiled threat that if you dont get close to our suggested raise sp we might go somewhere else..probably wrong but that was the feeling i got when saw the announcement
Executive corruption. Rings a bell?
Will we see Twiggy arrive next few weeks. He loves an arm wrestle with BHP....
I think the RNS is very informative.
It says amongst other things that we are raising money for the DFS.
We wouldn't be doing this if a bid was forthcoming.
We are doing this as we are carrying on with the journey to production.
redknight1 and quady thanks for that clarification. it is all further confused for me by this mornings RNS . One thing though seems clear to me that Solgold is not going to make me rich not at least in the near future. May be I should sell Solgold and buy BHP Lol World class frustration has gone hand in hand with world class discovery
As someone said to me earlier ... its almost as f Darryl is trashing the price for BHP
OR
They have agreed a placing price and have done this so it doesn't appear so onerous
Haven't bought an more yet ..... but not sold any either ..... can't get my head round this and why they would warn of an imminent potential equity raise .... self fulfilling prophecy
Other than serving as a heads-up, this was an utterly pointless RNS. They've never issued anything similar prior to previous cash calls and I really do wonder why they did so this time.
Sell it all they can't manage a kinda garden these lot no excuse dragging this on for this long and corruption thrown in an seriously considering selling up and moving on her now
This is what you get when a London listed company goes Brisbane centric and the new CEO doesn't have the first idea how to manage London markets and expectations...
I'm still of the view that the CEO appointment took so long because Nick vetoed the other candidates in favour of one of his Brisbane 'mates'...