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RK - I'm talking about actual asset values rather than those capitalised on the balance sheet. I can't speak for Noront but clearly only a fraction of the value of the project was being recognised.
So you take a starting valuation, be that a NPV for Cascabel or EBITDA multiple, discount it to account for the level of remaining risk and then subtract the outstanding debt at asset level being the two royalty deals.
Same exercise for Porvenir and a sum of the parts for CGPs other assets.
From there you can build out to a value for the corporation.
But I'm sure you know this.
Copperpot,
stop talking carp
SOLG will not be going to production. Ask Irwin and the CGP boys.... they have already told you where this is going and are so sure of it that they signed over their company and only bit of leverage in the matter.
These are money men. Maxit et al. They don't move over to another side unless that side is where the money comes in.
Now put your tackle away.
So try this one Bozi...you'll love it...
Noront's Total Assets at their last year end before takeover were $28.5 million
Their Net LIABILITIES were $38.4 million.
Wyloo Resources are paying $612 million...
They had $65 million of debt...
Please explain in the following context...
"That's how it works Fort, all debts are subtracted from asset values when it comes to determining a company's worth, which is so you can be sure we'll pay for it one way or another."
We have a PFS for Alpala that reduces the capex massively.
Has anyone considered the updated PFS may reduce it further.
Add to that upon completion of the DFS, we have options to finance Alpala to production.
I think that the review is coming in parallel with the updated PFS for Alpala.
Copperpot. If you are thinking about mine construction, you may end up with this being " the one that got away. "
Once we get that smelter on site - available from Amazon (see link below) - it's only a matter of first getting the low hanging fruit (the gold and copper lying around on the surface) before a couple of JCBs start digging the tunnel (or block cave if required) down to the good stuff, getting it in that smelter and giving Osisko their gold royalties in a briefcase each month (though watch out boys, that stuff is heavy).
Keen shareholders could be asked to come onsite and get busy with picks and shovels to help keep the cost under $50million per month.
I've heard tell that the first major gold vein is set to be christened The Quady Vein.
I love this idea. The market clearly loves this idea. Look at this morning. 30p by Friday.
We might even get 2 smelters if we have abnything left from our wages bill:
https://www.amazon.co.uk/VEVOR-Electric-Graphite-Crucible-Processing/dp/B09Q8H47XG/ref=sr_1_5?crid=37HYGO5ZVSGQA&keywords=smelter&qid=1667896041&sprefix=smelter%2Caps%2C82&sr=8-5
Onwards and downwards.... (downwards - into the gold and copper - get it?).
RK - Tesla was arguably the biggest bubble outside of crypto in the last couple of decades. Not remotely comparable with SolGold in any way. I certainly can't offer a rationale for how the market was valuing them but unfortunately I'm quite sure little old SolGold isn't going to be subject to anything like the same run, even with a positive strategic review outcome.
As Addicknt has pointed out these deals do come at a price albeit in a different form to equity dilution. As shareholders we will ultimately have to pay. It just seems certain posters aren't willing to acknowledge that.
Add - take your point. It did become a necessary evil unfortunately given the hole the company dug itself during the summer. I don't think I saw your posts on enterprise value but I likely would have agreed with them
Look at those big deals after hours...18.70 paid this am...
Bozi, I've mentioned the Enterprise Value thing on a few occasions, but it seemed few people were interested.
These royalty deals are all well and good but they come with a price. Having said that, as far as this latest deal is concerned, I'm not that fussed. We needed the cash badly and its source didn't really concern me - particularly as I believe it's only for the short term.
Net asset values...tablet all over the place this am...time to get up...
Copper....if you're going away again for a while, heres what you'll miss...
CGP SOLG stake sale at a premium to today's price
Porvenir update
Alpala Addendum
SP 35p by Xmas
Since when did not assert values have a direct effect on SP valuation...?
Explain Teslas valuation when they were only selling 50,000 cars...
Boliden, Fort?
They've been on a site visit and that's it. How can you use them to endorse the SolGold investment case?
Similar with Mitsui.
You've been pushing these names for weeks but neither have yet made an investment into the company.
You also fail to appreciate that this latest royalty deal isn't with FNV, Wheaton, Boliden or any of the other major royalty companies. It's with Osisko, decent enough in their own right but very much tier 2. A deal no doubt brokered by CGP and Maxit Capital, probably stepping into the breach to avoid their new investments in SolGold going down the swannee.
Oh, and you can bet your bottom dollar that somewhere in the region of $75-100m will be wiped off any proposed offer. That's how it works Fort, all debts are subtracted from asset values when it comes to determining a company's worth, which is so you can be sure we'll pay for it one way or another.
"All this "a sale is imminent" mullarkey has ceased thankfully. That rubbish has been going on for two years, mine construction will happen within 2 years and everyone will be praising Nick, DC and the team. The share price will be around the 75p mark, and all those that wanted (but didn't get) a quick sale will be well gone"
All that AND a 41lb halibut! Happy days indeed mate!
Nice fish!
Cogaz, theres nowt mundane a about about hooking a 41lb halibut. That fella and his friends were sold to the local restaurant last night. A sleep of Guinness followed. A good day indeed!
Good luck matey, my gear isn't getting cleaned sat here watching a day of my life wasted.
Just a quick question...what do you expect to happen here today? Serious question!
He did say mundane things(like life)? Maybe that's the fishing bit.
Good morning Addicknt, I was on a boat actually, fishing the Atlantic. Good to see that your present this morning...... well, there's no surprise there! ;-)
Have a good day matey.
Good one copper! Definitely for the record book. Perhaps you've been spending too much time dreaming on the riverbank. And if fishing is 'living life...' Still, each to their own.
Good morning RK.......well, for starters I do have a life away from here! Secondly, I have been more correct than a lot of people here that spout "a sale is imminent" tosh. Has there been any sign of a sale in the last two years?............No there hasn't, cos there's not gonna be one! Time to get my fishing gear cleaned and stored away. Hope you enjoy your full shift in here today matey, I've got a few mundane things (like life) to crack on with!
Oh dear copper...you're back to post that...I presume you're being ironic...
In agreement Copperpot, the strategic review will give us our options and way to go,
Mine construction will be with us before we know it! Let's get another 12 month down the line and everyone's thoughts will be totally different! All this "a sale is imminent" mullarkey has ceased thankfully. That rubbish has been going on for two years, mine construction will happen within 2 years and everyone will be praising Nick, DC and the team. The share price will be around the 75p mark, and all those that wanted (but didn't get) a quick sale will be well gone. The long termers will get their just rewards eventually!
Not forgetting open pit first! Lovely RNS yesterday by the way.....only just seen it.
GLA.
Morning all. Great RNS, I like how this is all panning out . Only going one way IMO. More M and A activity will be anounced by year end!!
GLA
DK
Sorry posted wrong link use this one - relevant text "Unlike streaming agreements which contemplate the sale and purchase of precious metals, offtake deals are typically used in connection with base metals, which have a more complex and lengthy supply chain involving bulk transport and refining."
https://www.canadianminingjournal.com/featured-article/offtake-agreements-and-financing-mine-projects/#:~:text=Unlike%20streaming%20agreements%20which%20contemplate,involving%20bulk%20transport%20and%20refining.