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.
Very pleased buddy5 disagrees with me. Just makes my case for what I have said stronger.
Enjoy ….. I got rid of my hangover with an early morning swim ….. usually does the trick.
None of us here actually knows the eventual outcome, but it’s pretty obvious Solgold will need help to get Cascabel into production, let alone any subsequent mines ….. we have done a great job over the last decade discovering and proving up and that’s what Solgold are best at …… every man should know his limitations
It would be great to maintain an interest in the project at some level but not sure certain large shareholders would agree …… we seem to have an awful lot ( and growing ) number of employees on the books with very little drilling taking place , surely they would not be adding to overheads day to day without the knowledge that money wasn’t going to be an issue?
Hi DBW, yes I see the link that you refer to (BHP). I'm not being dismissive matey but I bet Darryl Cazzubo has far more loyalty to Solg than he does to BHP. If DC's loyalties were with BHP, surely he would be still with them. Same could be said for Tanya Cashman? Lots of these people or either "head hunted" or they just want a new challenge. You could very well be correct in your thoughts DBW, but I think there is a lot of wishful thinking mixed in too. Anyhow, good luck mate....Im off for a hair of the dog ;-)
See you all tomorrow.
That would suit all parties...but dont rule out Barrick countering...
Orica
Erica + BHP....Snap DC...
Maybe Solgold or it’s successor should suggest that a proportion of solgolds taxes, plus a top up from the mine owner, should be used to buy a stake in the mine for the benefit of the community. This will keep all stakeholders aligned.
Damers …. Not far off what I think
Damers, your #1 around keeping SOLG as a subsidiary is exactly the sort of creative thinking I was referring to. I'm sure post-takeover the SOLG employees with good relationships with local gov would be more than happy to stay on and assuage any concerns (for a healthy fee, of course).
Vive la difference.
So, a permutation which may work for all………………
- BHP (or another) buys SOLG and keeps it as a subsidiary.
- SOLG under the stewardship of Cuzzubbo & Saridas (BHP friendly) get Alpala into production.
- SOLG also continues drilling at regional prospects.
- Key regionals gradually sold off by BHP to help fund Alpala.
………….and they all lived happily ever after.
It seems strange to believe that SOLG could *build* Alpala faster than anyone else when it took several years and two delays to produce a credible PFS. Of course a major such as BHP would be able to mobilise faster than SOLG. As addicknt points out, BHP will also have its own relationships at government level in Ecuador, and I have little doubt that they - amongst their other dirty tricks - will have dropped numerous not-so-subtle hints to the government that they are a more capable partner than little old SOLG, when it comes to building a Tier 1 mine.
Ultimately we have a government in power who want Alpala built and revenue generating as quickly as possible. If BHP buys SOLG I don't think they are going to start playing hardball with the permits. That said, at a local level the picture will be different, and that would likely require some creative thinking.
Copperpot
In the recent MD&A I thought this was an interesting appointment
“Tania Cashman was appointed Chief People Officer effective 10th January 2022. Ms. Cashman brings over 20 years senior leadership experience with global organisations including Orica, BHP, Shell and Pasminco. She began her career in Human Resources and since then has worked across many geographies and led several complex, large scale transformation programmes, supporting the business through significant change”
….. with 900 odd employees on the books I guess it’s a full on role …… interesting to note who she’s worked with previously….. seems to be a recurring theme
Hi addicknt, mutual trust is a very powerful tool too have in your arsenal as we both know. Solgold have had 10 years plus to nurture this trust and have provided employment and wages for the locals. There is a strong bond between local communities and Solgold. A huge bid and all the promises under the sun can't replicate this bond/trust. This could all turn out very ugly if big bids and strong arm tactics ensue. Lose the locals and you lose the lot in my opinion. I'm nursing a bit of a head this Morning, a few light jobs and then feet up. We all have our own thoughts, of which I respect......but I do think this year will slip by with no offer...just like last year and the one before. For me it's production all the way unless a real mind blowing, can't turn down offer lands. If that offer does land.......well.....all hell breaks loose! Good luck to you and all whatever our outcome is!
Good morning Quady, hope you're keeping well matey.
Agreed Addicknt, we have a difference of opinion.
All the best.
Bravado? In any event, this is about deliverability and whichever way you look at it, any major ticks that box far more effectively than we do.
When you say 'Mather and his people', who are they?
We can go round and round on this discussion - you have your opinion and I have mine and never the twain shall meet. However, we both understand the importance of the issue and I'm certain everyone else does.
Addicknt that is not what I said, I said NM and his people, so not just NM.
Any takeover would see people at the top go, and replaced. This means those relationships and levels of trust and agreed understandings also go.
I have seen this many times in the I.T industry when bidding for government projects in the UK and Europe. Sometimes you cannot even enter the bidding process for years, let about win contracts. This is not as easy as you think.
Please explain why Ingo said nobody can build Alpala as quickly as Solgold ?
Copper, I agree the locals are extremely important, a fact I'm certain BHP, or indeed any other potential buyer, understands full well. My point is that the element of local and governmental support is part of the intangible assets we "own" and no one in their right mind would do anything to upset the apple cart.
Over the years I've lost count of the number of bid situations where this type of concern is raised and I'm struggling to think of an example whereby it has actually led to a bid being stopped. Sometimes a buyer messes it up, but generally life carries on.
Quady, I'm 100% certain that ever since Mather was defenestrated the company will have taken steps to spread the depth of their exposure to both the government and locals. The new board would not allow themselves having to rely on one person...the old "what happens if he falls under a bus" strategy. If you are relying on this argument to support your "no bid" thesis, I fear you'll be disappointed.
Correct Copperpot, but I would go further.
People on this Forum have been screaming offer since hole 5.
Yet no offer.
Addicknt, the locals are as important (possibly more important) than the government! Trust in jurisdictions are of paramount importance. I'm guessing the locals would prefer Solgold (their employer) than a major that has done nowt in their hood! Solgold are also very well respected by the government, acter all they are the largest holder of acreage in the country. You have your opinion and I have mine, time will tell who is right and who is wrong. There has been no hint of a offer so far this year and were into the third quarter in less than six weeks. The sand is slipping through the fingers of time. No offer this year....wait and see!
So BHP will keep NM and his people to run Solgold, as these are the people who have the relationships.
You cannot buy them.
You can only buy what has been achieved so far.
Q, BHP will be buying those relationships and will obviously keep our staff who are responsible for maintaining them.
Ask yourself a question: if you were in government and your priority is to generate tax revenues, would you prefer a company with all of the cash required to build a mine or, would you run with a small company which promises it will find the cash but can give no guarantees?
Addicknt you are missing the point.
All what you say is correct up to a point.
It's about all the permitting to come.
The company has built relationships and trust.
That takes time to build.
Solgold have those relationships.
Copper, why do you assume that BHP don't have good relations with the government as well? The world's largest miner with clearly stated interest in the country, will quite obviously have developed contacts at the highest level and, should they decide to buy solg, will give all necessary guarantees to the government that they will maintain all existing ESG conditions. They wouldn't buy an asset and then go out of their way to disrupt the status quo...that simply doesn't make sense.
The work we've already done over many years is part of what any buyer would be purchasing, they wouldn't derail the situation.
It is wrong to assume only we can deliver what the government wants.
Hey DBW
Interesting read
Thanks for sharing!
Hope we’re all doin ok.
Ps
Was expecting a scrap with price not an absolute tw-att-ing for heavens sake!!!!!
Flippin hope we see an offer soon in whatever guise that may be…..
Would be nice to see the rest of the equity markets recover somewhat too
Atvb folks
Bn.c
Hi Copperpot agreed, we also have in our favour that we have consistently called this right.
All the best.