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Addick- Yes It will frighten BHP because they are at risk of losing a portfolio of assets that will replenish their current portfolio.
Just my opinion of course.
"Nick knew by bringing bhp onboard they would back him into a corner and playing the game Nick has progressed without issuing more shares". Erm? So the various placings, including to BHP, didn't happen?
Red, I think by issuing further stock to BHP he effectively loosens his control on the company as it propels the big three towards a majority control.
Jv with Chinese for southern areas
Franco/bhp for Northern areas(eventually)
Morning all ....sorry if already posted...
Looks like Cornerstone will be able to pay a few bills...
Nick knew by bringing bhp on board they would back him into a corner and playing the game Nick has continued to progress without issuing more shares.
Eventually the penny will drop with the majors that this can be funded without them and they will end up paying through the roof the longer it goes in.
Thoughts on sell porvenir to Chinese as didn’t their position state the funds raised were for porvenir exploration
Jv or sell alpala to bhp/ncm same possibly with Rio
As geographically all quite close
All other tenements we crack on with and which ever site is the easiest to mine we can go for into production and progress into junior miner if the board and company really want to scratch that itch
Because they were trying to oust Nm.
Giving more shares to bhp would basically of been game over.
I'm guessing if bhp paid circa 60-70p for a share raise they may well of got some more.
No cheap shares for Bhp.
Two innocuous reasons for a lack of drilling updates.
1. There has been a two week shutdown over Christmas and the company have only just got back going in the last day or so.
2. The company doesn't want to lay things on too thick without assay results and delays at labs due to a combination of Covid-19 protocols and an increase in drilling activity means assays are taking longer to come through.
Don't forget also that the company has stated thst it will only release material announcements. Management have maybe taken the view that drilling updates with no assay results aren't sufficiently material for a company of this size.
There's definitely no need or desire to communicate every 3 or 4 days, other than in short bursts where there is news to release. Once weekly drilling updates aren't realistic.
Why wouldn't NM issue further stock to BHP at 45p say...?
The Chinese got theirs at 'market price' on 12 November...
Addicknt - no, i don't think the interview was a ruse. I also don't think it was an open invite for BHP to fund the business at it's own convenience and on it's on terms.
I think the reality is somewhere in between; acknowledgement that BHP and NCM are important to SolGold and valued for their capital and technical expertise. It was an attwmpt at mediation rather than an award of first refusal.
I'm also not suggesting he is about to go and do a deal with the Chinese. If anything thst is less likely for the reasons you mention. Thst doesn't mean he won't take any more capital from the Chinese - i believe he will.
A deal with the Chinese isn't necessarily preferable. Many people suspect their proposal might be more favourable than one from BHP, particularly given how alienated and upset they hsve claimed to be. I think that's a pretty fair and logical assumption taking into account what we know.
To reiterate, i think the solutionis to cater for all until such a time where one party shows a hand good enough to take them forward into pole position.
If he is playing silent treatment to BHP, it will force their hand.
BHP knows that at least 6 of their competitors has the ability and firepower to make an offer of $4b-6B.
I believe NM will deliver.
Danny - look at the rubbish NCM and CGP we’re doing pre AGM got 6 months. They were publicly assassinating NM’s character in the media and completely tried to create a false sense of no confidence in him. It was complete rubbish as NCM and BHP (silently) tried to persuade us to put the knife in NM’s back and support them.
These guys have lost all face! It was deliberate and I really do hope Mather sells to anyone else but NCM and BHP.
The last AGM was there chance to push Mather and they failed.
They must now participate in a competitive bidding process for a portfolio of assets that will be valued much higher in 6 months time, than they are today.
Iceberg, you make some fair points but I struggle to see how BHP can put up £50m ? NM certainly won’t issue further stock to BHP and any bond from the BHP prospective would need to be convertible into equity. It’s going to be very interesting and I envisage NM will take the £50m from FNV
I came across this wise quote in relation to another company...
"Something always fills a vacuum. The long vacuum caused by no participation by the company....got filled with speculation and wishful thinking."
And so it is here...
I would like to think that Nick has finally got the message...STOP overpromising and underdelivering...'Shock and Ore' is a quote we may remember for a very long time, mainly for the massive anticlimax that followed...
Apart from the conciliatory tone in the AFR article, what caught my eye was Nick's suggestion that the DFS may be delayed into 2022...THAT sounds like underpromising to me...
It seems notable to me that there have been SEVEN exploration updates and countless conference presentations since 9 October when the SP hit 43p, but it is now 15% BELOW that...
So...unless there's another reason for the radio silence, there will be pent up desperation by the time the next juicy RNS hits and FOMO just might ignite the SP...
Remember, in August, a Mining Weekly article posted by SOLG on its own Twitter feed, said Solgold was the hottest takeover story in the City...
And what, you may ask, might the alternate explanation for radio silence be...?
A takeover approach or even JV discussions for Alpala would preclude any other RNSs being issued...
I am of the view that the next sharp move in the SP will take us through 50p,,,whatever the reason...
Sound post iceberg
Who's 'playing games'''? And why is it always about you....?
I'm taking a conciliatory tone...but as you mention it, here are some of the very many examples of how others post...
"Or is that over thinking it?"
"that sounds about right"
"I believe Mather's every action"
"I guess that's possible"
"you might see bhp/ncm coming in"
"That's my take on it."
"so what other angle you thinking there?"
"I tend to agree"
"maybe the AGM was needed to finally get everyone round the table"
"Solgold may be trying to hang on playing for time "
"Nothing to worry about in my opinion"
"Well am I wrong!!"
Red, I take your point but it's also used the other way round.
"And really BBG...."Accepting Franco will frighten BHP..."
A £110 BILLION Mining giant...one of the biggest on the planet...will be frightened by a £774 MILLION company with no producing assets for at least six years...""
In my opinion the point was that Franco and solg together can frighten BHP, Franco is a £15bn company from memory.
The bigger point imo, is that solg is surrounded by multi billion companies, be they Franco, the Chinese companies, Newcrest, BHP...They are all serious contenders and all of them are competitors. A merry dance of people who maybe arnt frightened but are certainly weary of each other.went
There was talk yesterday about blackrock, who as far as we know have only ever been supportive of solg and nick...to the point were when I contacted them back in the summer they were not amused to be mentioned by CGP and CGP never never mentioned them again.
Again just imo but all Nick is saying in the article, is that he will communicate with them and offer them any chances i.e before taking the Franco money give them the chance to contribute the £50m, if they don't want to be uses Franco...
That is my take on this.
Smoke and mirrors.
NM was going to try for a legacy.
I.E, Production, but then realised the implications and possible risks and has now reverted to original plan.
NM has played this game many times.
If it ain't broke, don't fix it.
I DO believe a BID or JV is due within a 3 weeks timeline.
NOT RAMPING OR DERAMPING .
Just my opinion and how I see this going.
Please Redknight, don't play earthlings game, you are better than that. I have said everything, everyone says on this chatroom, is opinion. I just don't use phrases like imo, imho, lol or any other text speak.
About the tax implications, SOLG has created four subsidiaries, and the challenge is likely to be about how to spin off the four subsidiaries, possibly under a "new" Solgold", after a takeover price or a JV have been agreed for an "Alpala-only" old Solgold.
This resolves the tax issue, allows SOLG to finally monetize on Alpala, and funds the other projects.
The real problem is not resolved though, no major is putting their hands up and proposing a "fair" bid for Alpala.
Its interesting...while some of us use 'may', 'could' and similar language that invites open debate, others post as if they have a hotline to God...with such certainty..."this WILL go to production"..."Nick WILL do this"..."BHP WON"T do that"..."NCM WILL do this"...etc...
"BHP are not running this show. They can launch a bid anytime.
The fact no bid has been tabled, tells us all something. That is they don't want to pay anything like fair value...."
Let me remind you...On 16 October 2018 BHP paid 45p when the SP had been 31.5p less than a week before...sounds like 'fair value' to me...at the time...here's the relevant RNS bits...they settled for quite onerous 2 year terms...
"BHP Billiton Holdings Limited (BHP) to subscribe for 100 million shares at 45p to raise £45m (USD $59.2 million).
BHP will, for a period of two years, support the recommendations of the Board of Directors in respect of SolGold Board composition."
And as soon as that condition was redundant they voted against Nick...
And really BBG...."Accepting Franco will frighten BHP..."
You cannot be serious...!!!???
A £110 BILLION Mining giant...one of the biggest on the planet...will be frightened by a £774 MILLION company with no producing assets for at least six years...
That made my day...!
Solgold may be trying to hang on playing for time to see if they possibly have another tier 1 resource on their hands before deciding on Alpala.
If recent drilling at Porvenir or Rio Amarillo indicated that they might have another large resource and open pit would be an option, it would be much less complex and quicker for Solgold to develop.
It would also then be easier to make a decision on Alpala, and if they decide to let it go, would then have the revenue to develop one of the them and other locations still to explore.
Good upcoming drilling results will also increase the value of the company if completely taken out by the likes of BHP and give shareholders a better price.
“ Don't give out anything when in negotiations.
That's my take on it.”
Pretty much where my head is at and given Nick’s rather conciliatory interview the other day I’d say BHP are involved ..... maybe the AGM was needed to finally get everyone round the table
So many people, including Nick, have said or implied that Alpala wouldn't be sold because of the tax liability...isn't that too simplistic...?
It has a very fast payback so SOLG will be paying corporation tax on profits anyhow...so why worry about tax now if it releases, say $2 billion net that can be disposed to take the other prospects to production one by one...?
For me, unless a hostile bid from the likes of Barrick or the Chinese comes in, a JV with, probably NCM for Alpala is a no-brainer...NCM raise the cash to develop...SOLG SP goes up and Nick can raise funds cheaper to develop the other prospects...
Have cake and eat it...?
Be patient everyone risk/reward gla.