Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Sell Cascabel and move on to new targets. Pretty clear I thought?
If we don't sell, what are we? A job creation scheme for 800+ people with a little bit of drilling here, some exploring there, jam tomorrow for the next 10 years till the indigenous people tell us we can't mine there anyway?
I'm with the CGP boys on this one: sell and move on or face a slow lingering finance death spiral.
Bozi, agreed...I meant to say several parties. I wonder if the delay is due to the fact a potential buyer(s) wants to see all doubt removed from the transaction first?
rcgl, yes, that may be the explanation. As you know, NM has always said the tax situation is tricky, but he never provided any detail as to why.
Addicknt - agree with much of your post apart from the bit about one party taking all of CGPs stake.
I'm not saying that won't happen but there's nothing to suggest yet that it will. In fact, the longer it takes to announce actually suggests their 6.7% will be split amongst several investors.
If it were a single holder, we really should have heard the details and received a TR1 by now.
Better tax treatment for someone to buy Solg than for Solg to dispose of ENSA?
What solg shareholders are getting in lieu of the payment due from cornerstone?
Presumably Q nobody rushed to buy out Cornerstone as they would have inherited a huge liability..the amalgamation seems to simplify things all round
rcgl, that seems unnecessarily messy and costly when we already have the structure in place to sell Cascabel separately.
Think they leave Cascabel within the Solgold wrapper and offload the rest into a new entity? They already telegraphed this as part of the strategic review:
· a spin-out of assets, other than the Cascabel Project, to all shareholders of the Combined Group;
Someone could then buy Solg and get Cascabel and we are left holding the rest in the spun out entity. If we choose to keep holding that...
Q, I certainly agree that a part disposal is a real possibility, particularly as much of the rest of the portfolio is a mish-mash of unexplored concessions which, even to the largest of companies, looks like an unfocussed and undeliverable mess.
Copper, not sure I agree with that. In fact it could be said that under your scenario the CGP shareholders are simply jumping from the frying pan into the fire.
Agreed Copperpot that's a large part of it.
I don't think a sale is anywhere imminenent! All the happiness with CGP shareholders including Arren Wirwin is because a huge incoming expenditure billl has been averted....nothing more or nothing less! You can feel the relief from here. They can now dust themselves down and relax a bit more. I can hear the phew's from here.
GLA.
Morning addicknt.
The problem I see is anyone could have brought CGP beforehand, but didn't. Why was that ?
Could it have been because no one wants Solgold in it's entirety.
What they want is Cascabel/Alpala.
When Cascabel/Alpala is 100% owned by Solgold then this is easier.
However the price still has to be right.
So I believe we still continue to DFS and funding will be acquired to start construction.
arrangement with CGP is a very neat way of raising some working capital. Obviously, we don't know if there will be any further requirement for funds i.e the amount needed to get us to DFS, or whether this exercise is simply a precursor to a disposal.
Of course the really interesting bit will be to see the destination of the CGP shares. Who will buy them? They cannot be sold into the open market without completely tanking our sp, so I think it's fair to assume a placing with a single purchaser has been lined-up. But who and at what price? Let's hope it's not BHP/NCM.
I also wonder if we've halted our efforts to raise more funds. I would guess not, because even though the CGP deal looks pretty certain, there's many a slip between cup and lip and we can't run the risk of it not working.
Many of us have already said it, but it's worth repeating - Sangha et al would not have signed up to this unless it was aimed at delivering their ambitions...and we all know what those ambitions are.
Jeez let’s not worry too much about 2070 I’m more interested in 2023 !!!
Seems like the big boys better grab Cascabel while they can. Theres 50 years supply to be had. God knows what the copper price will be in 2070, every car electric.
Short supply copper going on a bull run imho ,bides well for solg
The sound of those ducks is deafening… looking forward to a very exciting few weeks coming up for sure ;))
HFM,
Exactly what you’re saying, BHP are hurting as they thought they had managed to conquer and divide, pleased to see what NM had wanted a long time ago has come to fruition.
Solgold are stronger with Cornerstone and they are with us, BHP shareholders will soon give their so called guru a few ultimatums, they need to see their invested future is secure with this outfit, you can’t keep losing out or walking away from projects because you think everyone needs you.
Solgold and the team have been quiet over the past few months but we all know why now, let’s hope they surprise us again soonish
Atb
@eaayp - MH is Hardy going to say the opposite is he really? ..... MH ..'Righto stakeholders! We've divested all our non strategic assets for a decent wedge, made a ton of cash from inflated commodity prices, made it clear to all that we would like to pivot to commodities that support decarbonisation - now, anyone know of a tier one asset for sale with a proven future value that we might already have an interest in?' ... this just doesn't happen. TBH, the fact he's saying this in mainstream media indicates to me the opposite, so when they do make a bid, there is some sort of narrative out there to shareholders that they are taking a responsible approach to M&A. Anyway, who cares about BHP as there are plenty of other suitors out there. If BHP don't want Cascabel, they can just sit this out and watch someone take down this tier one which just so happens to fulfill their future mining strategy. BHP after being the bully boys are going to have their right to influence taken right out of their hands IMHO, and soon.
The CGP merger and subsequent lock up signed by all their major players was a game changer and the tables have now turned.
My holding here is large, and I'm currently under water to the tune of over 60k, but I couldn't be more content in my knowledge this will come good - and soon.
ATB all. C
I'm pleased to see we just got past that with a war starting, ironically the diverse book thing didn't bug me apart from it's frequency, I can see what he means althought it could be interpreted boths ways.
Surely the book is less diverse now SOLG and Cornerstone are one ? I'm still not sure if this marriage is to make it easier or harder for a take over but I'm going for take over.
I have also filtered him again
What I most took issue with was the bizarre view that he has been completely right so far.
If this is taken to production by Solg he is right no question.
If it is sold he is wrong
Until either of these things happen no one can possibly be right or wrong and as far as I’m aware neither event has taken place …. Unless I missed something?
Here’s to a really interesting few weeks !!
You're right Bozi and I need to start practicing what I preach now that I've got him filtered. I believe events are going to prove him totally wrong soon anyway. But you're right I need to stop biting too.
I've never been this bullish before, even at this low SP. I genuinely believe the next few weeks are going to prove transformational and a special time for us long term holders after all these years. Let's hope tge board gets back to some semblance of normality, because there should be plenty of big serious developments for us all to chat about - civilly.
Jezzoo - it's easy to say "don't bite" but if there was no bait then there would be nothing to bite on.
People get wound up for example by Quady's continued belief in the diverse book theory. Maybe we all shouldn't bite on that carrot either.
Sean - there's probably element of truth in what you are saying but again, Slug is responsible for his own reputation and that simply doesn't start afresh whenever he opens a new LSE account. His early work did him no favours with those who found his views deeply offensive. His card was marked. However, even in recent incarnations he sought to argue with anyone who would retaliate... Shipright, Copperpot, etc. He had a few dance partners.