Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I wonder what the Minister for Mining makes of all this? He must be as confused as we are.
That's probably exactly what he would have said if we didn't need a smokescreen around the fact that we are sitting waiting for a bid or perhaps in talks.
Of course large holders and long termers want the FULL value from Cascabel but we blew that over many years and we are where we are.
If we did announce we were starting a mine, the SP would drop to 2p -4p but the trading opportunities in that range would be enormous until we bankrupted ourselves but that wouldn't be much reward for the faithful. Yet a sale now at 32p won't be much reward for the faithful. But that's what dilution does, it's what u certainty anfd drift does, it's what alienating those who could have helped us does.
Anyone else out there have the foggiest idea how we could start mining without financial ruin?
"it is important to be crystal clear here. Solgold have made a great discovery in Alpala and cascabel, but we are not and will never be in a position to mine these concessions. It is therefore important to us as an explored and an active party within the local community that we find a suitable company capable of continuing our great work to take construction forward in the interests of all Ecuadorians. This will be our focus in the coming months, as we also seek to streamline our operations to increase efficiency in our discovery and development model".
Something like that, maybe.
That was certainly my interpretation - what is more meaningless than saying you are considering ALL options?
Fully agree on that last point.
I've long believed the choice of words was just too cluncky to be straightforward. It sounds like something Johnson would say about a lockdown party: extremely carefully chosen and too catchy to be natural. What phrase would you have chosen to tell the world that your company definitely were not going to be involved in the construction of a mine on your concession? I think I'd say something like that.
AgArCu, I agree that virtually everything he said was ambiguous, but, given the context, that quote was one of the less opaque comments.
It's funny how no one thought of this new interpretation until this morning (at least I haven't seen it). It strikes me as being somewhat contrived in order to suit an argument and doesn't wash for me.
Actually, I've reached the point where I don't much care which route we go down - I just want clarity so that I can decide what I want to do with my holding.
Sean, let's keep it civil, as you say.
I think waiting for the strategic review the company have repeatedly told the world they are working on is sensible. Initially it probably was a tactic to distract from the share price collapse, but they say they're undertaking a review and have outlined what it will cover. No doubt SC is probably trying to shift the company in the meantime, but the absence of any buyer (evidence: no bid) means we have to do something, and we are not drilling... So that leaves the review.
You are, of course, within your rights to wait until it is released to accept it is happening. Most here are content to wait a very long time for events to unfold.
DM, when you take into account the government requirements, another royalty deal is a complete no-no. We're already committed to giving away too much of our top line. Add to that the fact that debt would be ruinously expensive and you'll see why funding of any description looks highly unlikely.
Seanhunter of course it can't be done in an afternoon. Do you know what a strategic review would encompass.
It looks at many options.
We may be talking about altering mine design that later allows for the full block cave operation later on down the line.
Remember that the build will be completed in about fifty years time.
Because as we extract we continue to develop what is easily accessible and profitable as we go.
Don't get hung up on the cost.
We have an idea on pay back period and IRR.
So these are distractions only.
Plus - "It will be in the Strategic review" is no kind of answer.
I think a bid, a JV, the money running out, or the licences expiring are ALL more likely to happen before we see a "Strategic Review". It's basically a term for kicking things into the long grass. We don't need any kind of drawn out review - the decisions are fundamental and simple and would be made by a strong management team in an afternoon.
Personally I think a mine is a suicide mission and for the company talk of it is all part of a smokescreen. If it's not a smokescreen, maybe it's a threat - buy us now or we will run ourselves into the ground, bankrupt the company, the licences will be lost and there will be many years of chaos before anyone gets this resource packaged up as neatly as we have it.
I hope I'm wrong - but what is the path to building a mine that starts bringing in income?
Seanhunter I am honest so yes their is some vagueness as there should be on all discussed here.
The we will be bought argument has no vagueness but has been repeated for over ten years.
What do you want.
Propaganda or proper discussion.
I favour proper discussion.
DM...in the public domain are the following facts...
1 We have enough cash (including the CGP SOLG shares) to last until 'at least' June 2024 without a fundraise and even then, we have headroom in Royalty Financing.
2 Scott is working on much cheaper costings for the mine, using for example Chinese engineers and different approaches...only a matter of time before this emerges...
Given that you are the main supporter of the idea of going into production on here Quady, with all due respect your vagueness on this issue is alarming. I am 100% against the idea but I at least thought there was a "plan" which there clearly isn't.
A JV looks less likely to me than an outright bidder.
What about a royalty deal - surely that has to be the only option we actually have if we are serious? How would it work?
Addicknt it's not perverse.
If Cascabel was up for sale.
He would just say so.
It's completely wrong to believe this would all be done behind closed doors.
We would want the maximum amount of interest and that's how you would achieve it.
The problem we now have is we are at last running out of time.
Solgold have promised to start construction next year and the government has stated that construction at Cascabel will start next year.
So something has been agreed.
We just don't have the details.
Will the strategic review give us that level of detail.
Probably not, but I feel it will outline the pathway we will take.
That's the thing though, add: you're hearing it through your own bias, just as I am.
For me, he could have said "solg are not going to mine cascabel", or "solg are not going to be mine builders" but he didn't. "solg are mine finders, not mine builders". Well, that's true right up until they build their first mine. The phrase was so clearly a laboured sound bite, and he proved this by going on to say it a second time, reading the words off his script. Why not something less ambiguous? Why such contrived syntax?
A perverse interpretation of what our CEO has actually said and quite clearly not what he meant.
Good morning eish and Seanhunter.
I will start with how long it will take to build a mine and start producing revenue.
This is I feel part of the strategic review.
But an open cut at near surface grade with the surface infrastructure. I would say around 18 months.
It depends what model we adopt. Can we successfully target high grade gold near the surface with good copper content.
Next we are not mine builder's.
Nor is BHP or any other miner.
When mines get built they are done by civil engineering companies with the correct project management in place using the most modern methods which are continuously updated in real time.
Yes technology has moved on.
Lastly I get accused of saying construction is the only way.
I have never said that.
I have always said that looking at the facts, evidence and most likely outcome, it remains consistent that we move into the construction phase of the Solgold story.
I now believe we will JV.
But also believe that our hand is going to be forced with the expiry date of the exploration licence.
The dilution would be fatal to us small retail holders yes (that was always my view) but there seems to be those who think we can build a mine with what we've got in the bank.
I'd like to hear that scenario.
It's certainly not the most straightforward option, Sean, but it is better for LTHs than a continued erosion of sp and significant further dilution.
As for how much it would cost and how long it would take, a good SR would include that information amongst the options.
Genuine question to Quady and others:
Were we to go ahead and build a mine ourselves at Cascabel -
How long would it be till we are selling our first tonne of ore?
and
How much would it cost to get to this stage? (i.e. actually producing ore)
I'm not going to rain on the idea as a response, it's a genuine question for those who genuinely have this scenario in their heads (as those of us hoping for or expecting a sale are clearly now in a minority on these boards).
And let's keep it civil.
Solgold are not currently mine builders, add. That is true. We'd have to bring in some expertise to become mine builders. That's true for any company looking to become a mine builder.
Not that tricky!
Quady, I must apologise if I had misgivings on your consistent view: "We will build a mine and come to production" but, you clearly have a point from all the current (concealed) evidence. There is clearly something murky happening behind the smoke screen. Patience is still a virtue, LOL!
"We are not mine builders"
Confusing, isn't it?
I have recently been reading and re watching some of the presentation's.
The strategic review I feel will be completed by the end of October at the latest and in the first half of August at the earliest.
This is reading between the lines and looking at a timeline for the explotation license.
We still have a number of uninformed poster's on here who don't think the strategic review will take place.
However they have been wrong about everything else and will continue to be wrong.
Let's remember that the strategic review is about advancing Cascabel.
Also let's remember we are looking at staging Cascabel, so the huge sums of money to construct a block cave operation are not immediately required and we are looking to bring Cascabel to production for a fraction of cost.
How much?
Well that's the purpose of the strategic review.
I feel we will start construction this year.
So after all the waiting and the uninformed stating that construction won't be started for year's I say.
Listen to what Solgold are saying and listen to what the government of Ecuador are saying.
Adict, if you feel the need to get hysterical when I question a post fron the dreamer, telling us about a huge upside. Sums up perfectly, your insatiable need to be offended. There is not a huge upside to this share. An upside hopefully yes. Huge definately not.
Now I suggest to save you having an invented stroke, with your false indignation, I suggest you stick to hanging onto a complete dreamers every word and ignore me. As the pot says. End of