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Rich3r - not at all. I'm no saint and give out as much as I get, which may stir tensions for those reading but not necessarily contributing.
I never mean anything malicious but I have been vociferous, purely because I don't think there are many resource company stories like this and I hope we can all squeeze this for as much as we can get away with.
I suppose you could say I'm frustrated. I'm certainly not as supportive of the company and strategy as I have been in the past. I backed the company on the Dec 2020 PFS push back and advocated general patience (in what aren't usual times) and so the recent miss was disappointing.
I believe Solgold is very undervalued and I hope the upcoming study and MRE will show this. But the only route out of the undervalued wilderness is to start delivering on milestones that add value. That isn't drill down results (long term) anymore, so as you said earlier.
Thats a fair question Bozi...
Which is why I think it works best if a JV partner buy out CGP plus 35% from our stake...what would CGP take (as they must owe something like $60m by now...)?
I think the price for a 50% stake would be lower than a bid price for the whole, so say $150m to CGP and $350m for us...PLUS conditional on the JV partner leading the fundraising for development...
So RK1, same question to you.
Who wants to hold Cascabel and babysit two fledgling juniors who may have issues raising significant finance?
A major going halves with another major is completely different. It shares the risks and allows each company to achieve growth without overatretching.
DBW - apologies I'm not well across Irwin's more recent views and I haven't read the Ambrian report yet, so correct me if I'm wrong, but they're talking about Cascabel being takeover potential?
If so, that doesn't suggest anything explicitly about any third parties.
My point is solely in the context of someone else/new entering the fray. I'm not saying Cascabel isn't attractive or anything like that.
Say for example you're actually the CEO of Barrick Gold. How does it suit your company to pay £1bn for 50% of Cascabel? I know you agree by the way but want to know if you have any thoughts.
Bozi I know we have our disagreements which have at times become heated - mainly due to me I must admit, but I do respect your posts and your held views. But I’ve recently picked up that even you are a little frustrated about the current place Solg and the sp are in - including the PFS ?
I think that we could agree that Solg is currently undervalued - I would argue way-undervalued? And we’d probably agree that this state of affairs is dangerous. Heck even Nick must be thinking that?
So what would you suggest is done to rectify this situation? Surely ‘more of the same’ isn’t the solution - Einstein’s famous quote and all that ….
"the big mining houses aren't interested in part stakes"
Plenty of examples if you look Bozi...
RIO 50.8% of Oyu Tolgoi
Barrick 61.5% and Newmont 38.5% of Nevada gold mining assets
Newcrest 70% of Havieron
BHP:
Antamina 33.75%
Cerrejon 33%
Resolution Copper 45%
Samarco 50%
etc
etc
Your 12.57 post is right on the money IMO Bozi...
Hi Bozi
“I suspect that is why we haven't seen a third party come in for say 50% of Cascabel despite some posters saying they feel a third party involvement is close. Zero evidence and in fact, common sense points away from it”
You’d best tell Ambrian and Irwin they’re all barking up the wrong tree ….. it’s just my opinion
By the way I agree that no one will be happy with a small stake here
Whilst that may be the case Rich3r it doesn't mean you can't have an opinion.
As some members have commented previously, the big mining houses aren't interested in part stakes. They want control of the lot. Farming out Cascabel dilutes the partnership further and you only have to look at the Tullow/Eco Atlantic/ Total JV in Guyana which is parked and has been for some time due to the priorities of Tullow who are operator.
Convoluted ownership structures for an asset of this nature make no sense. Everyone needs to arrange their own funding otherwise everything is held up, for example.
I suspect that is why we haven't seen a third party come in for say 50% of Cascabel despite some posters saying they feel a third party involvement is close. Zero evidence and in fact, common sense points away from it.
Forgetting the tribulations of SolGold for a minute, why has nobody picked up Cornerstone yet?
Surely they are low hanging fruit? A third party could muscle in on Cascabel quite easily with a swift knockout blow to our Canadian partners, yet it hasn't happened. BHP have no foothold where that form is concerned.
Someone could buy Cornerstone now and if they lose out in the battle for SOLG they can still likely flog their stake in Cascabel for a profit to the eventual buyer of SOLG. Why hasn't anybody done this?
I don't buy that it's because we don't have a PFS. Any of these major miners can model the resource, take enough data from a site visit to make their own mine plans and then do the research which forms the basis for their economic assumptions. That should give them something fairly reliable to make a decision on. They can also trade with other shareholders off book and place a large iceberg order through the market if they are interested in the shares, but they haven't.
We have to start wondering what the true elephant in the room is. People would tell you it's Mather and Moller but come on, let's be serious now.
Bozi without looking like I’m sidestepping all of your questions, it really doesn’t matter what I think - it’s what our directors think. I’m hoping the ceo is willing and able to seriously & quickly progress this company - dare I even say transform it. How he does that is up to him.
Great assays from Porvenir & Rio - particularly Rio, may give a temporary boost to the sp, but as so many other posters also wish, I wish Solg could monetise some of the assets. If selling them isn’t favoured (and I take your points) then JV or even farm them out.
Wouldn’t you like to see something fresh & exciting from the company? Isn’t that what investors like? And on the question of financing yes you’re right about belt tightening in the current climate, but surely there’s always money available for the right projects - and surely Solg must be one of those!?
What makes you think that selling a slice of Cascabel will change things Rich3r?
Private investor capital isn't in the markets to the degree it once was. A few things have seen to that.
Institutional investor capital is shrewder than it ever has been before. There is collective belt tightening going on and has been for some time.
I've watched other companies announce transformational news and not receive the recognition they deserve, so I'm not convinced SOLG will be any different.
Do you think it's likely that SOLG will agree a deal to sell some or all of Cascabel given how certain people have valued the project in the past and their reluctance to release the PFS? You wouldn't buy a house without looking at the surveyor comments and valuation.
In my view, SOLG recaptured credibility by publishing the studies and resource estimations due and then coming clean on company strategy from there. ATB
It's often the blatant and obvious that's overlooked, Z.
But as you mention it, yeah I am the messiah.... ??
Bozi because as you previously posted half an hour ago - the market has stopped taking us seriously. I don’t want to see this situation continuing for another day let alone 3+ years. The way Solg do business obviously has to change if the market is once again going to take us seriously imo.
Bozi -
"...You simply have to hold on to exceptional projects like this for dear life and let them go at the right time..."
Blatent and obvious springs to mind. You aren't the messiah are you?
Z
Movement bounce on A trades maybe
Another cracking post bubble.
Z
We don't know for sure yet that there's anything significant at Rio.
Selling part of Cascabel now is akin to selling the family silver. We're left with 100% of the smaller Porvenir whilst still being on the hook for Cascabel capital requirements.
You simply have to hold on to exceptional projects like this for dear life and let them go at the right time.
Rich3r - 5 what is your rationale for selling company assets now?
Surely it makes more sense to do so as the forecasted copper supply and demand gap grows, anticipated to be some time between 2024 and 2030?
I'm not talking about our own strategies here by the way. I know we've done that before.
Is this situation any different to selling your precious metals or your buy to let property portfolio etc. You sell as close to the top as you can when you can.
Rich, you are of course right. The idea of us constructing and running three Tier1 resources is fanciful to say the very least, let alone all of the other prospects.
Sell Cascabel, divi out some cash and move on to Porvenir/Rio.
RICH3R, 1 trade news maybe soon let's see
Let’s JV (or sell) some of our portfolio and do it yesterday … PLEASE Solg !! We’ve been told for years that there are parties interested in doing so, so what are we waiting for? The market would then become bullish on Solg once again imv.
The cake is simply too big to eat on our own. My fingers are fully crossed that our new CEO gets this and is minded to progress things quickly. Recent news releases are certainly a start.
I’m certainly hoping that the upcoming AGM provides much clarity on our roadmap.
Gla
Numpty - does the market include BHP, NCM, Jiangxi or Franco?
Understood Sean. That's the world of resource junior investing.
I'd also offer the view that the first (post Alpala discovery) 42p or £750m was fairly toppy compared to 42p or £1bn now with a follow through project on the go and promising 100% owned regionals to compliment that.
I have to concede that the market has stopped taking SolGold seriously and that has provided a great opportunity at a meagre £530m today.
Fair comment Bozi.
My escalator remark refers to the faithful small investor - buying in and buying in to increase their stake over time while the great downward pressure of dilution from above actually decreases their stake in real terms.
Thus the MCAP has increased about 40% in my time with SOLG while the SP is exactly where it was.
It would have been nice for loyal private investors to share in some of this success - but our noses are nowhere near the troughs unfortunately. What we did get (and can't complain about) is about 3 exit points at the 42p level - but there too, loyalty works against the little man.
Sean- the paying shareholders I refer to are the ones that participate in capital raises. The likes of you and I that deal on secondary markets are just participating in the bigger picture.
We had this discussion during your last period of activity. SolGold made the decision to not do the earn in type agreement with their 85% stake, I suspect to avoid the concerns that surround another explorer that shall not be named.
We can argue whether that was the right decision or not, but it was the path the company chose and as market participants we have the choice to row along with it or take our cash elsewhere. It really is that simple.
You talk about me walking down an up escalator without giving any examples. More than happy to discuss them. As far as I'm concerned I'm on record not wanting disruption to the board of directors but wanting the same management to start delivering on it's intentions. I'm hardly p*ss*ng in the winds you regularly see up your neck of the woods.