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Bozi, royalty deals are very much alive and kicking and way way better than the dilution that the big boys like BHP and NCM thrive on and try and push onto the minnows. The two royalties made by SOLG were masterstrokes and have kept BHP in their box and rather embarrassingly saw them chuck their toys out of the pram... quite odd considering the size of BHP and how little they apparently care about SOLG lol!
The royalties do come with buy out clauses which allow a future partner or super major to reduce the ongoing expense. So they are in some cases reversible to some extent.
If SOLG needed to (in the future) to do a royalty deal and that was better than dilution, then they would do it. I remember a similar conversation some moons ago whereby certain posters said a royalty deal was not going to happen again after the Franco deal. And what happened?... mmm.
At end of the day... I think SOLG will be sold before the next royalty deal is done so not really an issue. But don't right one off as I can assure you... the CGP boys have no intention of massively diluting their equity holdings. That's the absolute opposite of their game plan.
Oh needalife... I get accused about telling porky pies about a tiny £1200 trade I did with a £33 profit yet here you are telling investment whoppers that would sink a battleship.
I think I speak for all-on here when I say no one believes you've ever made a profit in your life, on Solg or any other share. You are and out and out loser in every sense of the word and in everything you've ever tried. That's what you are here, a crusty little scab on this board, bitter, angry, with unstoppable rage and fury, lashing out 24/7.
Have you ever wondered how different your life might have been like if anyone had ever loved you?
Hfm. I've nothing better to do on a sunny Sunday afternoon. Out of curiosity to see what sort of character you are. I went back over your posts.... didn't have to go back far.
You my friend spout more rubbish than most on here.
There becomes a pattern of every few weeks you spout you've bought another million or 1.3 million for your wife or put 2 million in a silp?.
I couldn't read anymore it was like a test for a 3 year old to spot the liar.
I can't believe even the desperate positive news seekers on here. would give you the time of day.
Hfm, I assume you will bottle this but I'll ask anyway: who do you believe will buy us? I'm not asking who will actually buy us, because there may not be a TO and even if there is, you can't know who it would come from. But, based on what WI has said and what you believe, who do YOU think will buy solg? Nail your colours to the mast: you must be able to picture it, as you seem so sure?
Also shares were $2 when I got in. Now $20.
Not bad 10 fold profit or nearly a dollar a share dividend. So all this talk of massive dilution and massive debt. Is all it is talk, from a bunch of armchair experts who haven't a clue.
Adickt. Not to sure where all the panic talk is about massive debt.
FMG started up about 15 years ago with F A.
Now paying us shareholders 75 c a share. You really haven't a clue
I agree AgArCu, no meaningful TO is imminent., Scott and Bob need time to open up further options. Just read the words and then read them again before posting. I'm good for help thanks 😊
How long will I have to wait before you admit I was correct when I said no TO bid is imminent? Will you apologize in the new year, or this time next year? I'm a patient man 🤣
Him saying bids just aren't happening from majors is the biggest clue yet that we're not getting a meaningful TO bid anytime soon. If you believe otherwise, I can't help you x
This is not my interpretation AgArCu, I've quoted the interview verbatim, hence the quotes.
You'll find Warren extremely engaging on Twitter so by all means contact him and ask him if his recent quotes mean he's 'put a nail in' the fact that there is no bid coming. I'm sure he'll confirm his recent quote 'we'll get sold' ... just might take a few months from here is my take.
I'll keep an eye out for your tweet and look forward to him correcting you. My interpretation is that his patience is being tested with SOLG, but the asset is great and this will get sold in the medium term and he, like I trusts this management team to do the right thing by all us LTH's.
C.
If that's your interpretation that's great 🥱
In the meantime, shall we see what the SR says? Because we're not sold yet, and we haven't been for years, so... 🤷♂️
Anyway, I'm sure we'll come up with a cheaper way to mine some of the minerals, that's not really up for discussion.
@AgArCu Re: 'in the absence of a bid (and WI has put a nail in that) ' This is simply not true....
WI merely expressed his opinion that copper wasn't living up to the hype that was around at the start of the year and cited the lack of interest by the majors such as BHP and Rio in SOLG as one such anecdotal observation of his. He did state there are fundamentals are however in favor of copper though for sure, but it's just not impacting the copper price.
He went on to say that the 'Chinese are wanting to buy' (unclear that was correlated to SOLG) and 'we'll get sold' ( relating to SOLG), so it's untrue to say 'WI has put a nail in that'. We will get sold AgArCu.
Comments started arising about looking at a new mine plan early June so I think limited interest has resulted in Scott and the team looking a lower capex alternatives to entice suitors with smaller budgets into the ring with a view to getting more of an auction style sale of the main asset going as that the best way to extract the best price. They must be a couple of months into that review now so let's hope for some news in a few weeks.
It's frustrating and could be a fair while longer to get this sold but Bob, Scott and the team are on it and the long term fundamentals are there, so it's just a question of patience. I personally don't think we'll get near to the NAV of circa 72p or even Peels 65p target, but anything north of 50p and they are welcome to my holding.
ATB, C.
May have been posted before, apple if so, not been in for a few days.
https://apple.news/A5mrC8p3rQxayTsA4QlpT2g
As I've said before, I've done plenty of reading on the subject 👍
Think this is another one where we won't change each other's minds. Unlike the rampy claims of imminent TO though, I'm not promising jam anytime soon (nor promising anything, it's not a likely scenario), so I think exploring the possibility is probably fine.
Do you know much of the route to the petaquilla region's production? Knowing what successive concession owners and governments were saying about deals there, in the decades leading to production, will teach you a thing or two. I'm guessing you're not familiar. Lot of statements similar to those made by the last two administrations here, and we know the outcome (or I assume you do as a mining investor).
Obviously not a lesson in how to do funding, but notice what happened to the government's efforts there. Now can you see why I'm not claiming anything far-fetched?
You should read some of the recent comments on this subject. 6/8 percent has been the level mentioned by the government.
Ecuador will say they want 50% right up until they realise they need fixed income and don't really want to be seen to co-sponsor private company investment. Hence FN example- look how much they've taken out of pre-conditioned contracts everywhere they operate. It's all just talk until the rock gets crushed.
As I say, we only need clear £45-60m a year to make very good money here. What that would equate to as a percentage depends on all reset denominators, obviously.
As I say- not likely but more likely than an sr that says we'll wait for a bid, which in the absence of a bid (and WI has put a nail in that) appears to be most people's preferred outcome?!
AgArCu, I guess you haven't paying too much attention. The company has actually said there will not be any more royalty deals. Aside from their statement, you appear to be unaware of the governments condition and the percentage of revenue i. e top line revenue. they will take. Just how much revenue are you happy to see disappear? Suggest you listen to what the company says.
Not sure it is rubbish AgArCu.
With 1.6% NSR already accounted for, how far do you think SolGold could go?
Another 3.4% might fetch them £250-300m at a guess. That's incredibly expensive to shareholders over the life of mine.
Bonds and bank loans... forget them right now and for some time to come.
There's a good reason that Scott is looking for cost efficiencies now and it's because the runway isn't there for financing without them.
Really enjoy it with you speak so decisively, add. Complete rubbish, but soooo manly 😂
Nice attempt to close down discussion. How many royalty deals have FN done where they weren't first to the party? Answer? The majority of them. They don't care if less than 5% is already sworn away- they know they will be majority investors and able to drive design. Look at panama. Deep pockets don't get screwed.
Bozi, further royalty deals are off the agenda.
In all probability I will sell if a jv is announced, although it will depend upon the structure. For me if we go down that route we fall into the GGP category and it would become a buy further down the road. The opportunity cost of holding until production occurs is simply too high.
Next year things will look very different here
1) every previous creditor only gets their money back if the minerals come out of the ground.
2) the percentages they've acquired for their money are capped, so no future royalty sponsor would be worried about changing terms
We don't have a credit rating hampered by multiple credit cards. We have a f-ton of hard to get at ore with a fairly stable cash value that's only realised when it's out of the ground. Those who buy royalties have a little insight into how mines should be built. They will want a clear plan linking how their money is spent to how they get it back.
Is 2bn cheap for 25% of the product from cascabel? Yes. Would they get their money back if the mine plan is right? Multiples. If we mess it up and need more cash, can we go up to 75% and still get rich? Sure. We only need a tiny fraction of what's in the ground to see decent long term dividends. So long as you own a few 100k here, you're sorted.
Not particularly likely, but a more likely outcome option from the SR than 'wait for a bid'.
0.6% AgArCu.
The point wasn't that royalty is interest linked finance. It's obviously not. But do you not think that SolGold's creditworthiness with conventional lenders changes if the company layers on 3 or 4 royalty deals?
There's obviously a multitude of factors that can impact the sort of deal that a royalty company wants to offer.
That line of credit is now closed IMO.
Fully aware it was a royalty deal, add. How much product did we have to give away for $50m? Aside from the copper price not performing as we'd like recently, what's changed? The terms of a similar, considerably bigger deal would be no more punishing today than I'm times of lower interest, because the sorts of companies paying royalty deals aren't involved in short term interest-rate linked finance. They are more akin to venture, and some have very deep pockets. So I ask again, what % for $50? And what percentage would we need to agree to for an installment-lead $2b? That ought to either get the diggers digging or the majors bidding. They thought the last round was 'expensive' - I doubt they'd like 25% written out of the equation.
Again, we make decent money in a few years even off a £60m a year income. We don't need the full billions.
Interesting that both Add and DBW have made noises about dumping these shares if the outcome of the SR isn't what they want, i.e. a full sale.
I suspect they won't be the only ones if SOLG push some sort of JV. No other financing structure works. Further royalties will be expensive, will squeeze project economics and will be difficult to source without traditional debt that will come with a hefty cost of capital.
There's only one real option remaining and I hate to say that because I was open to SOLG pursuing production, but it's no longer realistic and it hasn't been for 12/18months now.
Hi Q
With respect, why not just send an email to Scott/NM/other managers if they plan to go to production? They will reply