SolGold Share Chat (SOLG)

Good morning addicknt, yes one pound a share is a good profit for me, However I never take a position, where I need to sell within a certain time period, I have other investments, that require almost zero management. This one needs to be looked at often.
I always look at the story, and how it develops. I don't take a stance on what will happen, I understand why I am invested. I don't believe our approach is dissimilar, just we think, that different outcomes will occur.

Good morning Schlemiel, BHP own less then 14% now, so do NCM, as the last fundraising, neither were allowed to participate.

I also believe this can be funded, but I still rate a takeover by Barrick as most likely and a JV with BHP or NCM on Alpala as next, the latter allowing Nick to take it to production and fund the other 13...

AIMHO as usual...

14 Feb 2020 (Vox)

' Separately, Newcrest Mining, one of Solgold’s major shareholders, has been quoted in the Australian Financial Review expressing its continuing support and urging further exploration and long term financing solutions at Cascabel while its other major shareholder, BHP increased its interest to 14.7% in November 2019. The report reiterates Newcrest’s view on the long-term value of the project and its commitment to the Alpala (Cascabel) project. Solgold are clearly keen to maximise the value and opportunity of their extensive exploration portfolio. It is possible that this could lead to further corporate action in relation to Solgold, Newcrest and BHP.' (*SP Angel act as Financial Advisor and broker to Solgold )

BHP partnering Newcrest will take Alpala forward. SOLG, zero experience of mining. Newcrest the Block cave experts and BHP, the capital giant. Throw in the enticing exploration licences.

Hello Miagi, you want me to point to a group of diverse holders on the share register, who would object to one pound a share. The answer is all of them. Not talking about PI's. If at PFS, means we are a 7 billion pound company. One pound a share is just over 2 billion. Imagine your house, is valued at 300,000 pounds, would you take less than 100,000 pounds for it. That's what we are talking about, getting less than a third of value, at PFS, and that's with zero value on all other tenements.

Too much focus on BHP. As the Americans say, watch left field.
GLA.
Enjoy your bank holiday.

Novice and Dart, you're in the minority then!

Good morning, addicknt, I did answer on the army of defense advisers, a couple of times, but no matter, nobody reads every post. My answer, was a low ball bid, is certainly a possibility, the army of advisers is not there to say no to a low ball bid. Solgold can do that itself. The army of advisers is there to defend against a low ball bid, should the bidder go hostile. The second part of your question is funding is not easily available. Yes I agree. But it's available to us. I do not believe that Ingo, would announce that we have a billion in the pipeline, and people are queueing up to fund us. He has also said, we are taking time to evaluate the best offers of finance. So I believe we can fund this. We will see, as this is going to play out one way or another. You are counting NCM and BHP, as one block of shares. I see nothing, that they are working in concert, or that they will. NCM, want I believe a bigger share. None of the interested parties are going to say, you can have my shares on the cheap. Not even CGP.

Surely you're not serious...you're telling us that you wouldn't even sell one share at £1...?

And he cannot count on twice that percentage holding i.e 40%. We will not get our hands on CGP, Newcrest will support anything which gets rid of NM and BR will be sellers, as they've already demonstrated.
All a bidder needs to do is persuade 10% of the other shareholders, which will include institutions, to sell and at £1 per share, people will bite their hands off.
I'm not saying I'd be over the moon at price, but I would trouser a seven figure profit which, although it appears to mean nothing to you, is actually a great deal of money.

Me too.

I would object Miagi !!!

You're right...why would NCM kick up a stink if they didn't want a bigger piece of what they clearly think is a very tasty morsel...

Quady, put it this way: can you point me to which shareholders on this diverse register would object to a £1/share offer from BHP?

Hi Miagi, let me try to put some meat on the bone. The share register is the most important attribute in any take over. I will give an example. If NM could call on Tenstar, and DGR, and between them held 51% of the shares, then it doesn't matter, if we are offered 100 pounds a share, NM can say no, doesn't even have to put it to share holders. Now, it looks like, that he can only call on 20% of the share register. If we get CGP, it will be 27%. But then NCM and lots of other investors, have to sell to BHP. In that situation, they don't turn around to BHP, and say, you can have our shares cheap. They say, if you want them, then we want the best price, we can get for them. BHP, says no, we want them cheap, and a stalemate occurs, no bid is forthcoming. That I believe is why, nobody has bid for Solgold. It would be too expensive. That's also why I believe NM, when he says, we go to production to get full value.

Quady, I rather fear it is you who doesn't understand how big companies work, not us.
I'll repeat a question to you which I can't recall you answering (apologies if I missed it): why has NM appointed an army of defence advisors if a bid is not going to happen? And I love your comment about the type of companies BHP go for - it perfectly describes us - great resource and in need to money (of course, you'll argue that raising billions will be a stroll in the park, which it isn't)
Nearly 30% of this company is owned by two of the world's largest miners and yet you appear unable to see how much of a threat that represents. The one thing I will concede is that a bid is unlikely to happen in October. Conversations will be required between BHP and the others, and that will take time.

Quady, fair point about the licenses. We have however been on a timer for 3 of them since last September...

Hi Quady, a few points...$1200 is used for stress testing at Barrick - that doesn't mean they use it when doing NPV calcs/acquisitions.
I really do not get your point about a diverse register being a barrier to takeover. It makes no difference whatsoever.
People are talking about BHP wanting to get a bargain as if it's something revelatory. It's no surprise at all - they are a business afterall. It all depends on the competition for SOLG when the floodgates open. And if "full value" is £2-3, if they offer £1-1.5 then they are not offering full value but they are offering something that most shareholders would be delighted with.

Good morning Miagi and others. NM has not failed to prove up the other tenements. It makes complete sense, that we didn't want the licences early. Would NM have liked them earlier. The answer is yes, he has said this on more than one occasion. But remember, once all licences are approved, you are on a timed schedule, to complete studies, and build. If we had acquired, permissions earlier, we would have just had the clock ticking, and we would have been spread to thinly, with not enough finance, and Alpala, would not have got to MRE3, you can only spend the money once. This is about to change.

None of these companies will sell their stake foe less than what it is worth If they did it would make it possible for a takeover for one of their competitors NM has them all exactly where he wants them. All wanting more shares but not willing to pay the price. The unlikely white night to our investors situation is the chinesen turn up with a bid out the blue , that NM finds acceptable . then the auction would really start All of us millionaires

Why would you use $1500 when it has been above $1500 all year...averages over $1700 and there are so many forecasts above $2000... what about the current assumption of a $3.30 copper price...

"Problem is, NM has had over 2 years+ to get those licence blocks explored and proven up and he's failed to do it. So now he's left chasing a small window to get exploration results delivered befreo BHP's lock in release."

Yes, it's altogether odd. The strategy here is opaque at best. Now they've apparently got the permits (they've had 3 since last September), they're not exactly going at it hammer and tongues are they - 2.5 months after announcing "mobilisation" and we're possibly at the end of the first scout drill at Hueca; it doesn't shout urgency to me.

Good morning Novice, I am unsure if BHP, will divest themselves, for the same reason that NCM haven't. Who wouldn't want a share of this. But as some others think, that BHP could take out Solgold with a full bid is clearly nonsense. Especially, when you have the CEO of BHP saying no to that idea. I think too many, don't take the time to consider, that large cooperations, don't work like that. The companies, that BHP and the other majors will go for, are ones with good proven resources, that need money to develop. We are not distressed, we can get the funding. So we don't fit that profile. All the best.

Spot on Quady, I believe BHP will slowly begin to sell their holding back into the market place once they confirm with NM that this is the route he wants, unless they offer a knockout blow. A cat and mouse game of the highest level...

I agree Schlemiel, but they don't want to pay full value, so NM will say no. Then BHP, will have to talk to all other block holders of shares, to see if they will sell cheap. My next question is why, would they sell cheap? Answer they wouldn't. So BHP doesn't get Solgold, and we become a producer.