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SM - don't row back. Your comments (all of them) last night were bang on the money. Get another case of your favourite red ordered in I say!
Add - respect all your views but not sure I can agree with them on this occasion. The way you end your post is a good barometer for what you and indeed a lot of us are feeling at the moment... hope.
I for one don't ever remember the strategy of the company being to make a discovery at Cascabel and sell it on as quickly as possible. That was the CGP strategy but it wasn't SolGold's. As soon as it became apparent what we were on to the conversation shifted to development, CGP contributing their share of the costs incurred, etc.
If you think back, there was no desire just to market the asset. It became about finding the next and the next in the cluster in Aguinaga, Moran, Tandayama, etc.
This was all off the back of the company moving out of Solomon Islands given operational challenges at the company's projects there.
The story was all about making a find in Ecuador and riding it as long as was necessary. It shouldn't therefore have come as a surprise when Ecuador got big ideas about widescale overseas investment, opening their cadastre up further and SolGold were one of the company's to take part, leveraging their early environmental, social and governance efforts.
Where this went wrong IMO, was with the PEA and flawed first draft PFS. Mather was too aggressive and went unchecked until the 11th hour when Keith Marshall applied the brakes. By that point, we'd seen a rocky 24 months and LTHs started losing faith in the company's ability to get this progressed.
Had Mather restructured the organisation after the second Alpala resource estimate and brought in a team with the required knowledge and experience of studies then I'm quite sure we'd be into the early stages of construction now, so for me it's not about not believing the production rhetoric but more a case of watching a lack of delegation to suitable hires slow the company's progress considerably.
The way I see it, is that a revaluation should be forthcoming, but it likely won't be seismic. From a 15p level I'd say +/-50% is the likely result in the next 3 months, with another +50% in the offing to the upside if things play out well.
So ultimately a positive SR and we're back to 40-45p and a poor one and it's hello 7.5p.
addicknt, your comment is correct, especially the frustration aspect which is reason for venting and rubbishing the BOD for the inactivity. by many including myself.
I still believe(hope) this is going in the direction of the best shareholder value it can muster given the circumstances.
ATB
Jezzoo
That's the reality now, for those thinking we we going to get bids of 40, 50, 60p etc the likely figure will be nearer 30p with the dilution, at least to start with, maybe less...imo...
FWIIW, I think investors should look at the market cap and not the share price, then compare to times of old.
The market has a history of keeping market caps in check.
As an example, SOLG's market cap when it tested 42p highs seen last year (lot of people were happy and clapping with joy then) was just shy of £900m based 2.3bln shares and on 85% ENSA.
When the sp dropped back to 25p which acted as the base level for sometime (call it the comfortable range... not over priced and not under priced etc) the market cap was £570m.
Recently we've seen 14p/15p levels which are the lowest for a long time and many think it reflects a poor sad state of affairs at SOLG towers. Market cap today at 14.5p ish is £335m. However (here's the fun part or not)... post merger share issue (and recent fund raiser) to CGP 14.5p x approx 3bln shares = £435m cap. So when everyone was happy clapping at 42p (£900m) are we to assume all will be happy clapping at 30.5p (£900m)?
Of course we have an extra 15% ENSA in the bank but if the 85% is priced at a major discount eg 10% NAV (as it is now) then 10% of CGP's 15% ENSA stake is a pony £65m! That's ridiculous, but then so is the 8% NAV discount. However, if you take the £30m raised through Chinese at around 16p then in value terms, the chinese have acquired 6% of ENSA at a 11% of NAV.
In a nut shell, market cap matters to the stock market. So as an example, at 19p, SOLG is £570m market cap post merger. That's essentially 25p levels of old when most were non plussed and waiting for events to unfold. So at 16p or 17p seen in recent weeks that's just 10% off those levels... hence there really should be no fear of doom and gloom. No fears that things are on rocky shores. It's just the product of hefty dilution vs a market that is unwilling to price in the added 15% ENSA correctly or even get close to proper value for the NAV which should be 20% minimum based on the derisked advancements of Alpala.
Sorry for long winded post... but reality dawns... an appropriate and fair discount to NAV will only take place once a monetisation event or partner deal or full asset sale has been presented to the market. Until then... the sp is largely irrelevant but the 'animal' is actually not that far off what it used to be. In fact, I'd argue with $80m+ in bank, 100% ENSA sorted and AGM resolutions flexibility granted.... SOLG is in much better shape. Enjoy your weekends.
… the ship is being steered by a significant core of substantive shareholders who have known form, and a lot to lose personally. Their intentions (as we surmise them) make practical and pragmatic sense. I’m just topping up as I can now so my own goals can be met by a lower exit price than the 80p+ I once hoped for.
Morning addicknt, you're right RE Mather - my comment last night was flippant and a poor attempt at word play after too much red wine. Also agree that there is now a clear direction of travel, but mildly frustrated by (yet another) missed deadline and subsequent knock on effect on the share price. I remain hopeful of a positive outcome.
Enjoy the weekend.
SM
SM, I don't often disagree with your comments, but I'm afraid on this occasion I do. Mather's shift of strategy led directly to the problems we've encountered. Had he stuck to the initial gameplan we would not find ourselves in this situation. No one believed the production rhetoric and it seriously damaged our credibility.
I'm also somewhat mystified by the belief we are currently 'rudderless'. Sure, we're all worried about the current sp, but surely people can see what's going on here? We've entered a new phase under the control of a team who appear to share our opinions and I assume are giving full attention to ensuring the SR delivers on their promises.
I believe we're about to witness a seismic revelation and we have to be patient, no matter how frustrating that is. I admit, if we had not raised the cash, I'd be extremely worried, but we did and we have access to more - which we don't need at the moment.
I think folk should stop framing the company in terms of the old board and strategy - we've moved away from all that and are on the cusp of something completely different...I hope!
as a minimum its been scuttled on the rocks...for now...Will the rescue come????
The rudder fell off when Nick left. The boat started filling with water when Darryl took charge. Now a gang of pirates are attempting to sell it for scrap before it sinks.
My take is I think the rudder fell off and they haven't noticed yet.
Yes, I'm sure several large financial institutions are currently hashing out the finer details of a finance package that will allow us to bring Cascabel to production with our interim CEO and interim CFO.
Did you see any pigs flying at your star party per chance Quady?
Slug - no one expects you to "conform to wokery" whatever that sh*te means. Just stop being such a pr*ck and venting about the climate / the vaccine. Try and care less and enjoy life.
Hi Jezzoo like most on here unsure what is happening.
I believe we need to wait for the strategic review.
I do still believe on the balance of evidence we are taking this to production on the evidence before us.
But I am perplexed by current events.
I am curious as to why we haven't had a clear RNS.
It's possible that we are waiting for the placing of a financial agreement.
What's your take on the SP Quady ?
Okay AsharT reported for being Slug.
Goodbye Slug, nobody here wants your hate apart from DBW and a few deluded individuals.
Sorry been away for a few days having fun with friends, at a star party.
I see sluggy is back. Don't worry he's going soon. Even though his best friend DBW is supporting him.
Bye Trasha......lol.
Geez Slug, your a bore
I won't be deleted for not conforming to wokery. F--U--C--K you all
I won't be deleted for not conforming to wokery. F--U--C--K you all
Back almost to where I joined SOLG so many years ago ..
EVs are far too expensive to buy for the average family to afford imo.
Personally, I’m waiting for Hydrogen cars to become affordable.
As to SOLG, what a farce of a share price. As DG1 recently noted - our Directors should be absolutely ashamed !!
Please get this done !!!
All in my opinion of course :)
Afternoon all. There is a gap at 13.76p from 29th Sept 2022 hoping if that is filled it may then jump.
Last summer I drove a Tesla3 in Italy's country roads, I think I never had so much fun driving and I love driving, it felt like driving a 911T. Still as a matter of personal taste I find them unappealing, however I concur with Shippy, their performance can be much better than a combustion engined car.
@RED, if were kind enough to share that list of 41 stocks I would love to have a look at them. one way or another I suspect that after this year I won't be a SOLG investor anymore. If you prefer I can leave you my email and we can communicate bilaterally. Cheers, TI
Its Hubrishunter who used to post good stuff on here.
Nothing to do with HubrisWarrior who was the Slug impersonating...