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Everyone be careful of this share (asaimet) at its highest for a year (which is today) its only been to 5p!!!
Eish, I don’t think the 10p share price is a useful comparison because nearly every stock globally tanked at that time. Panic, not fundamentals, dropped the price. With that said, I agree with you - why not lower? The uncertainty alone should be enough to knock it back, but why isn’t it falling? Tbh I think I’d have a better chance at predicting what is happening with SOLG by reading tea leaves.
Agreed Redknight, BHP are concentrating on improving output of commodities in demand, and will increase Nickel and Copper by M&A if at the right price.
I have always said that I don't see a takeout bid for Solgold, as BHP want it cheap, and NM wants fair value, I think your last post demonstrates why BHP will not go hostile, so if BHP do bid, it will be a negotiated bid.
I would be surprised if anyone goes hostile on Solgold, as we will defend and make any bid higher than anyone wants to pay.
While you're waiting for this to kick off, take a look at ARS and today's RNS.
Bankrupt - Agreed, I probably didn't read all the posts correctly yesterday and probably took some things out of context; so sorry if my posts came across negatively against you.
Good luck with your investment decisions
BHPs priorities from their 2020 Results presentation...
"Decarbonisation, electrification, diet, land use and population trends will all drive higher demand for copper, nickel and potash in the medium to longer-term. We are therefore looking to grow in these future-facing commodities.
"In copper, we have a world-class, expandable resource base.
We’ve added to our options through partnering with junior companies in Canada, Mexico and Ecuador.
"And we will grow in those commodities with the most positive long-term demand, and which offer fundamental, greatest upside.
"We generated US$15.7 billion of net operating cash flow. For the 10th time in 11 years, this was in excess of US$15 billion.
(Copper) "Securingmoreresourcesthrough exploration and early stage entry options
"we want more growth options, and we particularly want more growth options in future-facing commodities... copper and nickel, and so on. but we'll also look to secure more resources through exploration, early stage entry, and whilst M&A isn't our first focus, if the right opportunities arise in the right commodities for great assets, where we can secure them at a good price, of course, it's incumbent on us to consider those, as well.
"we will be open to opportunities in copper and nickel. If the right assets came up at the right price, of course we would explore those.
Agreed Redknight, I also value yours and many others opinions.
Iceberg I believe disagrees with a lot of what I say, but enjoy reading his and your posts, as very informative, and you both verbalise your arguments better than I do..
I agree about the repeating of positions, however this sometimes needs to be done, to stop arguments built on straw men.
We are in silly season at the moment, as every time we are expecting a bit of news, we get the argument that this is evidence for a bid, as opposed to this is a natural progression for a company going to production.
I think one of the best posters on here recently is Lafitte as he gets to the heart of the debate, and explains in detail.
All the best.
Could they not simply buy solg and then themselves sell off the other tenements?
Just to clarify:
"Would be good if going forward we didn't simply parrot the same opinions over and over but instead we respond to RNSs and articles as appropriate and respect each others views?"
Colonel may I add that the reason BHP have been reducing debt, is the huge amount they are going to spend over the next 7 years on improving viability of current mining operations.
Even without a bid for Solgold, they are never going to keep their level of borrowing under 10 billion.
I think it is to both our credit how are engagement has matured after the early stumbles...
I respect you as much as anyone on this BB, even though you come across as completely inflexible at times...
I guess like me you are fed up with the unpleasant arguments that often go on here...for myself I also just flick through a lot of the tedium that frankly adds nothing...
I think those of us who are at the 'core' here, know and understand each other's positions.
Would be good if going forward we didn't simply parrot the same opinions over and over, respond to RNSs and articles as appropriate and respected each others views?
I have found that the filter function works very well, especially so that I don't have to read bigotry, for example.
Respect mate and to the other who know who they are, without me naming them...
Much depends on BHP's or another majors risk appetite vs bargain price. Here;s the scenario facing them...
1. Bid now based on a price for Alpala and a little bit added for the folio ahead of Porvenir full details etc
2. Wait until Porvenir and more regionals are drilled and then pitch a bid at a higher price but with greater knowledge of what there.
3. Lets assume you know what's there already and you know it's too big for a super major alone. So you prefer to derisk and do a JV approach.
Remember, it's not just the $3bln or $4bln or $5bln required to take SOLG out. It's the $3bln + $1bln for the phase 1 development. Total spend could be around $10bln but spread over 5 years. BHP's total debt last year was around $10bln I think and they had worked hard to reduce that from higher levels indicating that they don't want to go above $10bln debt again imho.
So if you ake a $3bln cost for SOLG (cheap I know but lets be conservative) and then throw in at least $500m for the first year development plans, that's a $3.5bln hit to the balance sheet. Followed by around $1bln per year in capex for 4 to 5 years+ is my guess.
BHP are making alot of cash at the moment and will continue to do so. Tier 1 projects are rare these days and resources are falling. So at the level above, it's doable for BHP based on 100p+ for SOLG stock lock and barrel.
But throw in Porvenir and Rio and then it becomes to risky and too capital intensive. You need a super major or Chinese involved for each Tier 1 project imho.
So all in all, if BHP are only interested in Alpala, then they might just want that and leave the rest of the folio for another major? But before making that decision... perhaps they want to see what Porvenir and Rio hold? Sometimes extra detail knowlede is the decising factor but it comes at an added cost / acquisition price.
Big buying appears to be being done through UT's & late buys as witnessed by last weeks 2.3 million UT although yesterday's UT sell at 37.55 was dissapointing
Agreed rcgl2, if a bid was felt to be imminent, then sentiment would increase the share price, as people who believed this, would be buying en masse .
As we still have 5 years to go before this is built, and we have studies to produce and a CFP to arrange, their is nothing odd about where the share price is.
Alternatively, no one wants to buy this at 38p or above.
Could be some bargains in green shares but you'd have to wait until after a Brexit decision and the new year to invest in them wouldn't you??
Rubbishinvestor, let's say for arguments say that is true. Then the question is why 37? Why not lower. I get there are a myriad of factors counting against a higher sp. Not long ago the sp was knocked down to near 10p
Agree Scrat, particularly the point about spending money. I for one would not have wanted a top heavy, bloated and expensive company which has no revenue right up until it became absolutely necessary. Now they are in place though, they’ve got to start justifying the extra expense.
On the Boris Johnson spend on covid, read up about how the government calculates the death rate, might surprise you, then look how someone like Germany calculates their figures. I know you will be surprised. Our figures are designed, so we don't underestimate. We have responded well as a country.
Guess we’re still not in the clear with regards to Coronavirus. Red days happen, but the general trend is still positive, globally.
With regards to SOLG, I am convinced someone wants the price kept at 37p. It keeps bouncing around that level.
In a perverse sort of way, I quite like the odd day when everything tanks. I just see it as a buying day, rather than a selling day.
I think you are correct Scrat, why spend the money, until you need to spend the money.
There’s two ways of looking at the sudden pace with which the board has matured. Was NM blind to all this or was he simply waiting until it became a necessity? I’d imagine the auditors will have been whispering in his ear so it feels like he was holding off on the additional cost of all this corporate governance until he had to. The fact that they rounded up the necessary credible people in short order feels like the talent scouts didn’t come to this stone cold. I am actually quite comfy if he was conserving revenue until his hand was forced. Just one perspective, there will be others no doubt.
Redknight, that wasn't my point about BHP and NCM, I agree they have the management experience, but the build and technical direction is subbed out.
Your correct as we don't have the management experience, hence my comment about a technical build director to oversee on behalf of Solgold.
We can use the market leaders, this is a good time to build a block cave operation, as not many going on at the moment, and plenty of civil engineering companies out there, who would want to tender not only for Alpala, but would want to be in with Solgold for future builds.
Think about the HLD and LLD, ask yourself who is doing this, after all we cannot complete the PFS without these build documents.
My guess and it's only a guess, is we will use the people creating our build documents, as that is usual practice in the engineering environment.
I look forward to the PFS ( as we all do )
But I want to see if possible, who has designed this.
Followed shortly after by the CFP, it will be full steam ahead.
All the best.
It's about DNA Quady....SOLG have zero experience of building any mine anywhere...and OK you can hire people in, but SOLG is still a small mining company if you discount the Ecuadorian job creation scheme...look how small the Board was until a few months ago...their astonishing ineptitude in bringing in 20th century governance 15 years late...
It would be to your credit if you acknowledge you were wrong about BHP and NCMs block caving experience...
Boris Johnson has bought in £22billion of COVID 'experts' and look what has happened...