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Stackhigh, its not the cufent MCap of SOLG that matters, its what BHP would have to pay...
Even at 80p that is north of $2 billion
They bid $250 million for Noront and then walked away when Wyloo bid $370m
And this is the argument they put to the shareholders:
"BHP recognizes that delivering Noront’s portfolio of projects in the Ring of Fire is expected to take many years, require significant capital investment, development of remote infrastructure, and management of numerous stakeholders. There is no certainty that shareholders remaining invested in Noront will ever realize the value for their shares offered by BHP in cash today."
https://stockhead.com.au/resources/ground-breakers-bhp-top-brass-wont-blow-up-the-bank-on-fair-oz-minerals-bid-as-copper-becomes-must-have/
"BHP is primed for M & A, with oodles of spare capacity to spend big even after announcing a US$8.9b final dividend, paying out 77% of profit after announcing a US$30.9b net profit and US$23.8b attributable underlying profit for FY22.
“We will absolutely remain disciplined, just because we know how important it is to ensure that we’re remaining disciplined from a capital allocation perspective,” he said.
“We spent a number of years now, building trust with shareholders. That’s a very precious thing and so as we did with the Noront process of last year, we have a very clear eye on value...."
Sound familiar...
Fort - it's the cost of the debt. Work out what 0.6% of metal sales from the project could amount to.
I suspect they'd much rather have been able to maintain their 13% stake of the post merger issued share capital via equity.
Something about having their cake and eating it.
Twigger never named BHP- that was guessed at (probably correct, but no certainty. Why not NMC?)
And BHP have set up an exploration company in Ecuador, which explains meetings: trying to get concessions cheap, no doubt. That's a much more likely cause of the meetings than to discuss their minor investment in solg.
If a company like BHP are to exercise their votes at AGMs, which they always do, then a junior member of the explorer monitoring team has to decide on a voting stance and action it, but my point remains: these aren't the actions of the senior management of the company. We just aren't that important to them!
Look in the mirror Z ! anyone who judges or comments about someone on the measure of recommends they receive is a fool of the highest order or at the least immature ;))
ONWARDS & UPWARDS guys,
Fortissimo, fantastic post and perfectly articulated
I don’t mind at all gives a truer picture of price … plus it’s a free board ….. mostly
RK - when will you learn that no-one, absolutely no-one cares one jot how many shares you buy sell or eat!
Look at the recommends - you're talking to yourself most of the time. Get a life or better still start your own forum: the Mr and Mrs Rednight shares appreciation club or similar..FFS.
Z
You must remember that whilst BHP get diluted to 10%, it's a better 10% holding than before. Eg, SOLG own 100% ENSA and have effectively acquired 15%. Now to most shareholders, it's not that dilutive at all as bulk of us get the extra value back when ENSA is sold 100% (one hopes) and there's the 6.7% SOLG shares.
NCM were quiet as a mouse on news of the CGP merger yet throw toys out of the pram on a royalty deal.
So let me get this right... NCM are happy being diluted by 3% (down to 10%) on basis of having 10% stake in 100% ENSA ownership????? rather than 13% stake in 85% ENSA????
However, for the buyer (if it is BHP) it's a bit of a double bloody nose. They still have to buy 100% ENSA but only have 10% SOLG stake.
NCM is a curious one as it's clear of late that they are not capable buyers of ENSA and a project of Tier1 size. They want the low hanging fruit developments not the block cave mining jobs which is ironic as they are supposed to be block cave specialists.
So why would NCM be bothered by a 0.6% royalty if they have no plans to buy SOLGor be part of the ENSA development?? Perhaps they are upset as they wanted to be in the mix to fund Alpala through stream deals and equity placings.
Bottom line, the biggest looser in this is BHP. After Noront slipped away and oz minerals looks like fading away, they really need to start delivering a longer term investment plan for their shareholders as their resources are diminishing and they are still playing around with dirty fossil fuels which they had previously said would be sold 6 months ago.
Extraordinary...Quote is 17.36/17.38...
Actually 17.365/17.3784...!
Quady "The only people with an illness on this board are those that support Slugs disgusting views.
However, for someone to call Slug his friend is truly sick."
Obviously the level of animosity has dropped below your required level today Quady so here's an opportunity to
attack me for no reason to get it back up there.
You're welcome..
Stackhigh,
So if SOLG is so low on the BHP radar and too small to pay much attention to or as you say... even read a company response to the allegations that they were seeking to destabilise SOLG BoD's through contacting various individuals and trying to get them to vote accordingly.... see where I am going with this.... got it yet?? Is that the way a big company like BHP goes about a small off radar investment like SOLG?? I think you need a wake up call. Furthermore, are you aware that BHP met in person with Lasso this summer? Now what on earth would BHP be doing getting involved with senior political players in Ecuador especially as they seemingly (according to you) have a minor interest there.
Wake up. Super majors don't try and disrupt small companies BoD's unless there's something IMPORTANT involved like one of the best Tier 1 copper discoveries in last decade??
stackhigh, "there's literally no chance he ever read that RNS"... and you know this how?
Going through the motions. As I say, there will be a small team of people who, as part of their role, monitor their many smaller investments (inc those that haven't been deemed worthy of a JV yet). Don't get me wrong, they're not looking to lose their investment, but to read this board you'd think Solgold got mentioned at every BHP board meeting. Reality is we've probably only ever been an 'AOB' a couple of times throughout their entire investment history.. Do you think anyone there ever actually raised Twigger's response with the CEO? He hasn't been put on notice to 'put up or shut up' because there's literally no chance he ever read that RNS.
So why did they publicly complain when the FNV deal was done...and NCM withdrew their Director...
I'd be surprised if BHP even really noticed. Certainly their shareholders won't really care. 0.6% additional dilution of a c.£30-40m investment, that's years from generating revenue?
Not registering. BHP holders are much more interested in macro factors affecting the resources they already mine and sell. Someone in their explorer investment team might well clock this, ghost write an indignant press release and out it out as if a top bod said it, but we really don't show up as a speck on their radar.
The only people with an illness on this board are those that support Slugs disgusting views.
However, for someone to call Slug his friend is truly sick.
Not illogical at all, still seems strange that we have no real info regarding the attempted raise.
What we do now know is Bhp and Ncm are taking a fair bit of dilution and imo that's as a direct result of their behaviour over the last 12-24 months and that may annoy me if was a bhp shareholder.
Would it be enough to bring bhp to the table?
What other tricks has Mather up his sleeve?
In theory it should be wedded to ENSA but that's not how it reads. The royalty is referenced to Cascabel and if you read the Franco deal notes you'll see it was ring fenced to ENSA. The RNS was 'light' on information regarding the $50m and let's face it, we've not heard. been from Darryl since the Merger webcast on October 7th. My guess is that if all work is halted on ENSA pending a sale process, then the $50m will potentially last 12months or to around October 2023.
Another scenario is that the market knows that SOLG wants $100m in total and that the other $50m will come from placing the 6.7% CGP shares post the PFS2 and Porvenir PEA RNS's which might result in an so of mid 20's to 30's?? 157m shares x 30p = $50m or thereabouts.
Then while sale process is on with ENSA, they drill like mad across Rio and other targets adding some spice to the first 6 months of 2023??
Mog ,thanks for link proves one thing doesn't it
There are some screen dumps of the article over on hotcopper
https://hotcopper.com.au/threads/solgold-cornerstone-merger.7007380/page-2
have access to the NCM whingefest?
mog...the stream will be from Cascabel but iot doesn't say if the expenditure is restricted to Cascabel...
Doesn't matter though...stake sale coming which, tpgether with $20m plus left over can fund all we want to do outside Cascabel...
Especially as they're being diluted to 10% smickster
Fort, i'm of the opinion the $50M is restricted to Cascabel
"The Board of Directors of SolGold (LSE & TSX: SOLG) is pleased to announce that SolGold has entered into a binding agreement with Osisko Gold Royalties Ltd ("Osisko") for a US$50 million royalty financing ("Royalty Financing") with reference to the Company's Cascabel copper-gold project in northern Ecuador"
You're right Smickster. A compromise would be fairest and I believe the same about cheap equity being the preferred finance route, hence why I was so worried about it.
Yes, we are reading between the lines, but would I be being unreasonable or illogical if I said I don't think there's been any conversations(at least of a hostile nature), because had there been, SolGold could have told the market that it was in discussions which would have sparked new interest in the stock and gave us a platform for raising money at a higher price if we needed it?
The opposite could also be true. I accept that.
I think there is a gap at 16.82 from 4th Nov