Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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.
I predicted there will be no bid in 2022 and I was correct. Can't see one in 2024 either - although opportunity to trade later in the year perhaps?
...block the regular use of a bulletin board?
1) Mentally unstable
2) Moron
3) Paid to stop a healthy conversation about SOLG
Zoros …. It’s Massif not Maxit but I’m sure you already knew that
Ray we’ll miss you …. See you in Q4
Shame, I was honestly thinking of loading up here but I'll leave it to Q4 2023
Shame....
Copperpot and DBW - many thanks. I'm no longer interested in the day to day machinations of this dreadful company (Solg), as I was this time last year. I 'pop in' occasionally to see if the 'paint has dried' but alas, nothing / nobody has changed......yawn.
My holding has been consigned to the bottom drawer for better or worse in future.
Regarding this article - it tells us more about what is/was going on inside Solg than the last 10,000 posts! Very interesting - and puts a number of issues to bed for me.
What it doesn't do (obviously - because Maxit Capital have pulled out now) is tell us what could/may happen in the aftermath of the CGP/Solg combine. Damn!
A very good find - thanks again.
Z
Quady remains on here because he follows the rules and he's not afraid to stand up to slug.
Sean on the other is just a frustrated trader.
Agreed quady, I read on solg how Sean worships him like a lost puppy, and he doesn't even respect Sean in the slightest.
Good morning Ortherncopper I think Nick lacked the competence to sell us cheaply to BHP.
Seanhunter I only defend myself against those that abuse me.
As you put it I am allowed on here because I obey the rules.
I am very careful to do so.
Sorry Seanhunter I read ADVFN occasionally and you support and praise him over there.
People don't need to believe me they can check for themselves.
Anyway no need for all that Sean, I understand you're frustrated, man up and deal with it.
.
‘ Nick was sufficiently disliked (in part because of his lack of a particular type of competence) ’
Anyone care to guess what particular type of competence?
You'd have no chance and I'd make a handsome bet on that. The probabilities of a win for you would be remotely small.
Quady i agree with a lot of his opinions on SOLG but despise his behaviour on here.
I also made a point of identifying him as Slug after he got Quibbles banned.
Your presence on this board is in many ways no less disruptive than Slugs, yet you are allowed on here and we tolerate you, so please think twice before doing the finger wagging act.
I disagreed with him 100% but Quibbles was ten times the man you are.
MassiveRay, Quibble had the measure of you even though oyutried to suck in with him.
He called you a "rotter" (a word I haven't heard in anger in 40 years).
He also said low life snitches and pests like you would be bent over the radiator at boarding school and given a "carbolic charge".
Me, personally, all they'd need to do is give me 2 minutes alone with you.
Thanks Copper
Here’s the link
https://seekingalpha.com/article/4573222-massif-capital-fourth-quarter-2022-letter-to-investors
Zoros, ........Massif Capital.
Solg down 57% from 37p
At the same time poly up 87% from £1.20
And the winner is?
I'll leave the math to the experts.
Seanhunter you constantly supported Slug here and on ADVFN.
To think, they BANNED Quibbles because he unmasked NitPicker99 as Slug!
And here we are yet again.
DBW - who exactly is making this statement and what is their conclusion???
Z
Maybe so novice but I'm very pleased investors made money and didn't lose all their money as you desired and the opposite happened here.
All in all makes it fair.
Now can we be friends?
Lolzzz
Cont ….
The new management team that was put in place was headed by Darryl Cuzzubbo, the past president of Olympic Dam and veteran of 24 years at BHP. This seemed an excellent fit for an eventual sale of the asset to BHP, already an owner of 13% of SolGold. It never came to pass though, and Cuzzubbo was shown the exit in November of 2022. Meanwhile, as the SolGold soap opera played out on the London Stock Exchange, Cornerstone was either range-bound or slowly bleeding, and copper prices were strong. Cornerstone management, late in 2022, got an opportunity to exit the asset on decent terms, and given the drama at SolGold, we can hardly fault them for that. They made a decent profit for the company (and they were all large owners of the company), even if it was not necessarily a good return for Massif Capital. In the end, the Cornerstone management team sold their stake in SolGold and the Cascabala asset for $0.04 per pound of copper in the ground vs. the $0.06 to $0.07 per pound we expected as a result of our review of 21 precedent transactions dating back to 2010.
We were not sure we would have made any different decisions based on our information. Our expectation that Cornerstone was a seller and that SolGold would eventually need/ want to consolidate the asset was correct. Our timeline was accurate, and our read on management incentives was roughly correct. Still, our read on the magnitude of return needed to justify a sale in management's eyes was off by ~50%. We played our hand well, but we should have been playi
ng the management team's hand when we thought through the prices at which the transaction could be acceptably completed in the context of their incentives. If we had done that, we might have been more cautious with our entry point.
Why the price couldn’t move
POSITION EXITS
Cornerstone Resources (CGP:CA)
We entered Cornerstone Resources in January 2020. The firm was an underfollowed holding company of mineral properties in South America. Our interest in the company was driven by its ownership stake in SolGold (SOLG:CA), a London-listed copper and gold developer focused on Ecuador, and the firm's ownership percentage of the land package on which SolGold's crown jewel asset, Cascabel, is located. We owned the stock with an average price of CAD 4.5 and sold out at CAD 3.2 for a loss of 28%.
The investment goal was to benefit from an expected sale of the company, with the value derived from CGP's stake in the Cascabel asset. We expected that the sale would take place within two years. On October 7, 2022, the firm announced it was merging with SolGold. Our timeline proved roughly correct, but we lost money.
Our first misstep was the timing of the purchase. We started accumulating shares in January 2020, expecting SolGold to release an updated technical report on the asset sometime during the first quarter. We expected that the asset would improve with the release of this technical report. Rather than release new technical information, the firm reconfirmed the existing technical report and then delayed the release of a pre-feasibility study that had already been delayed once. As SolGold and Cascabel were the assets on which CGP traded, it fell on this news.
The delays should have been a red flag, and we should have exited, but at the same time, Nick Mather, the CEO of SolGold, stepped down. Nick had been forward-looking in building SolGold, having ventured into Ecuador and staked out large land packages that were highly prospective long before Ecuador became a hot spot for exploration. We are unaware of any shareholders who liked him. Liking management is not necessary as long as they are competent. Still, Nick was sufficiently disliked (in part because of his lack of a particular type of competence) that 44% of shareholders voted against him at the December 2020 AGM.
Nick was hell-bent on building the Cascabel mine. We viewed this as a problem. The deposit is fantastic, but only if you want to build a large, deep block cave mine. Block cave mining is a very complex method of monetizing an asset. It has a substantial upfront cost and requires tremendous expertise, which SolGold did not have. We viewed his departure as a positive, opening the way for the asset to be sold alongside Cornerstone's stake in both the deposit and the SolGold. Within that context, a delay in the PFS release, giving the new management team time to reassess options, was not an obvious red flag.
BPHIL of course frosty mornings won't be a thing of the past.
Climate change is about extremes in the ecosystem .
We can have even colder temp but the average will be higher year on year for the cycle that we inhabit at the time.