Roundtable Discussion; The Future of Mineral Sands. Watch the video 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.
Sharemarket. have you and the seven who liked your post had the chance to reflect that every one of your
claims is a baseless fabrication,
and have you by any chance come to the conclusion that it says much about you. that you have to fabricate
complete fantasy and lies to look clever to the gang.
also why not respond to my post. posting my views on joint ventures.
or is it that I might have a point you can't countenance. so rather than respond, its easier to deflect with made up tripe to discredit the poster.
Orthern.
Your post.
"but how economically viable the extraction is, is still debatable."
This is the crux of our problem
Solg by their own rns said claims of tier 1 are subjective.
And adikt rather stale claim about companies not being terminally stupid to invest in us is correct.
He just doesn't understand, or doesn't want to understand the very basics, of companies and hedge funds and speculaters investing in exploration companies.
The money they invest is as I've proven peanuts to the multi billion profits they make.
Bhp even have a separate wing to oversee these investments. Witch total many dozens
It really is getting a bit tedious reading these posts from people who appear clueless to the realities of
Speculative investments.
Adikt just remind me what percentage of bhp profit did they invest in solg
Orthern.
Your post.
"
Orthern, you're right, the Crux report did set the cat amongst the pigeons, but it's interesting to note that since it was published we've had investment from two Chinese entities and have raised a considerable amount via two royalty deals from institutions which specialize in mining. And I think I'm right in saying both BHP and NCM have also invested more during that period - although not recently.
Of course, it's possible that these companies are terminally stupid, but somehow it doesn't seem likely.
Q, I'm still totally baffled as to how we're going to raise all this debt you talk about given we don't have a DFS, nor are we even working on one.
I think it’s fair to say if Solgold had discovered, through various technical studies, that Tandy was a viable open pit resource, we would all know about it.. and the share price would not be 15p. In reality we have had only hopefully, maybe and potentially with regard to the Tandy deposit.
And I think Scott’s re introduction of language, pointing to Solgold continuing solo with Cascabel, after his initial bluster, tells us everything about how discussions with potential partners/buyers is going..
We clearly have a large resource, yes, but how economically viable the extraction is, is still debatable.. Crux nailed this issue a couple of years ago. Many of the points they raised were never countered.
Good morning Bozi.
The idea of debt funding Cascabel in stages makes complete sense and I believe is the way forward.
I believe this is being looked at seriously.
Maybe with a JV maybe on our own.
Before anyone pipes up and says it's too expensive.
The answer is it's not.
Scott doesn't think so as he has now commented twice about going it alone.
We can do this in many ways, with a mix of someone buying into a JV. Plus loans which are staged.
Let's also consider offtake.
Their are other financial instruments àlso.
The calculation that we have to undergo is the payback period with accrued interest. Hence staging.
Sure someone may bid for us. But as Solgold has said many times before.
We are not going cheap and as I have said and been proven right many times before, we can defend.
Because we still have a diverse book.
In fact it is more diverse today than it has ever been.
Get the fundamentals of fund raising correct and the share price will rise.
Then maybe we can have limited dilution as the company has said to claw back some of the funding.
Sharemarket. I ve said exactly the opposite to the rubbish you just posted.
ive clearly said on many , many occasions, I expect a modest profit on my investment. check my posts before you end up sounding like adikt.
Ive also said on many occasions old bean, that I only invest in exploration companies, and have for many, many years.
I also have never said all my exploration companies end in disaster,
check last weeks post. I posted I invested in fmg when they were an exploration company. one of many
so on the whole your post shows what a clown you are.
Gandy being Tandy.
Eloro - how is SOLG way ahead?
We have a large deposit but the current studies we've spent years carrying out don't provide a viable way of extracting the resource. Gandy was sought to provide early ounces and we're still waiting to see if this discovery is big enough to prioritise via an open pit.
The other two you mention may well amount to nothing - no arguments there - but SOLG could easily amount to nothing too if we're not careful. Debt funding in this environment is a no-no for obvious reasons so it has to be someone with a lot cost of capital that has the appetite to take on the political risk.
I'd be wary of attributing what we've seen to 'delays'. Things are moving slow and price is down here for good reason.
NAL - just a word of advice old bean, perhaps investing in exploration companies isn't for you if it always ends up in disaster?
Previously you've stated that the risk here outweighs the potential upside, so how about you do the sensible thing, sell up and leave us all in peace?
Bozi, the companies I am negative about doesn't have a tier 1. Arc doesn't even have a resource estimate after 5 years. As for PRE, the leader couldn't organise a p I s s up in a brewery. Heck, he couldn't even pick a suitable site for his plant. I am positive that they will end in disaster. Solg is way ahead of all of them in that we have a tier 1. Lots of delays here, but I am confident we will get there in the end unless Perez nationalise our assets. Reasons enough to be positive I think.
Ftjny.
Not to sure how many exploration companies you've been invested in that went into a join venture.
But from my experience of being invested in 3.or 4 over the years, it's always ended up a disaster.
The big boys invariable murder the small boys and share price.
I'm sure quady and the other resident experts on here will post a list of where I'm wrong and they will show the odd jv that's worked. But they are very few and far between.
So my friend, it's not glass half full or half empty. It's cold hard facts, from experience. Not spouting clueless jam tomorrow, and all news has to be positive.
What is there to be positive about Eloro? The SP is languishing at 15p.
Can you explain why you are vociferously negative about the management of another company we both know well yet you're looking for positives here? Both companies are in comparable positions.
Some shareholders are fed up. They are harnessing an average of 20p+ and god forbid 30p in some cases no doubt. It's hard to accept such a destruction of value given we have this tier one asset, which, by the way, isn't as fantastic in this tightening environment as it was when interest rates were next to nothing.
We essentially need someone with a spare £5bn to pay us and then build it. The list of interest suitors will be short.
I think you're right Add.
A JV possibly sets the starting gun on a race for the door. The CGP investors aren't likely to want this outcome and PIs would get caught by the stampede.
That pushes us towards an outright sale. All that remains is whether we'll see a spin off. I'd still favour one but I suspect we probably don't see it.
Hmmmmmm
🤔
Eloro - Agree totally!
It's the glass half full brigade
The balloon poppers
The people who suck all the positive energy out a room
Why the he££ this lot are invested here I have no idea!
But as my dear Grandma used to say to me in her broad Lancashire accent " Aye there's nowt as quer as folk"
Point taken Highflyigman.
Given the tone here, anything you say would be pounced on with extreme negativity. It amazes me why folks who professed to be shareholders are always without failure leaning towards the negative, expend a great deal of energy to find reasons why nothing good will happen here. Anyone would think we do not have a tier 1 asset!
This solg, not Arc:)
Any JV news would see an inevitable spike in price… certainly not back to 30s, but we would see a spike ..
But that would inevitably be sold off very quickly, as fed up shareholders, seeking any reasonable exit point from here, bail out before the price slides back to lows…. as the realisation of the coming dilution, mine build delays, and time to production and profits sets in..
The question would be how big the spike would be on any JV news, and how many investors would be willing to keep their funds tied up here until production…. Can any of us time that exit at the right point?
In fact I'd go further than your analysis; I don't think there would be any divi, all the cash would be needed to stand our corner through development. Imo, a jv would be terrible for us private investors.
Bozi, I've been banging that drum about a jv for a long time.
I struggle to believe that a rumour is going to bounce round retail investor bulletin boards and then some sort of offer is going to be recommended by the SOLG management.
Remember that SOLG aren't obliged to make us aware of every proposal they receive, just the ones they think shareholders should accept.
If there's anything of substance here then management need to work on getting the SP up from which to provide a better base.
Remember, we're talking about Cascabel here, not Eagles Nest. Plenty on here quickly to band around tier 1 status etc so flakey rumours at 14/15p don't fill me with with confidence.
Even if you do the sums on a JV, it just doesn't stack up. For example, 15% of NPV + £150m in lieu of historic exploration costs leaves us with about £600m. That would give a special dividend of 10p maximum and potentially less.
The more I think about it the more I worry that Bob and Co are yet to find something substantial from the SR.
There is a name associated with this rumour doing the rounds, however I didn't ask as there's a line with these sorts of conversations.
Must stress its just gossip at this stage. C
Highflyigman, did your contact tell you the name of the interested party, or withheld that info for now?
If you do know, is the interested party North American, European, Chinese, or Aussies? It would be interesting to know.
I think it's FMG with Twiggy looking to kick BHP in the goolies once again.
I recently added. Locked and loaded.
100% agree Fort, as of 6 or 7 weeks ago I've got a full position here now, as have other family members and an associate who has provided advice and industry knowledge.
Bob is an industry leader in getting deals like this done, oh and has major skin in the game here too.
Do agree with Bozi et al though, would have though recent roumers which are well know in investing circles would have pushed us on a bit by now.
Well see what September brings. Have a great weekend all. C
Volume is usually your friend but I think that's different with SOLG now everyone involved is fully invested. Everyone that wants in is already ... in. There might be a few irrelevant pi's with their £20k+ sitting on sidelines or rolling the dice on other stocks but that's not going to give you a meaningful volume surge.
Noront was calm waters before their first bid so no leaks there which was a surprise. Wood Group (was FTSE 100, now FTSE 250) was looking unwanted at 100p levels and volume poor. Next day... Apollo made 220p offer. There are quite a few examples out there where volume does not give you any idea a bid is coming so be careful if you are using that as your signal to invest.