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The bold assumption that there are still some people on here who wish to discuss the company, would a jv be better for shareholders if it were affected by way of a 'direct or indirect' partial sale of Cascabel?
Obviously, a 'direct' sale would be via a partial disposal of ENSA and an 'indirect' sale would be conducted by selling shares in the plc. Both are dilutive, but is one less os than the other?
Direct is preferable. 20% of a functioning mine is worth a lot more than 100% of a hill with some trees on it. And we can then use cash to move business forward, without another party forcing us to put every penny into cascabel.
Good morning addicknt.
I think it really depends on the strategic review.
We require some numbers around a cheaper high gold grade surface open cut mine, that can be constructed in a way that progresses to a full block cave model.
If we can bring this in for under 2 billion dollars, then we get a JV along with loans maybe some royalty or offtake deal and some minimal dilution as the company has indicated in the past.
I believe this way we still retain control of Cascabel and Solgold as a whole.
I wonder what the tax implications would be for both options? An indirect investment via a dilutive placing would not attract any tax, but what about the direct route? Clearly, we would want a higher valuation of the asset than is presently the case, but would a partial disposal attract corporation tax as a result of the implied profit?
Q, I'm slightly surprised you haven't listened to the company on the topic of royalty funding. And who in their right mind would divi-up many millions of dollars for an off-take deal at this stage of the game?
Basically we would get a spike in the share price on any JV news that was accelerating Cascabel development to production.. the size of the the spike would be dependant on how Solg were contracted to fund it (free carry would be ideal, but unlikely) and any spike would almost certainly be very short lived, as longer term holders who are just looking a for any reasonable exit point after all the frustration would inevitably race to flog their holdings... after that it would be another long slog of shareprice depreciation, as time to extraction and costs weigh on it... until just before mining begins..
Basically get out... wait a bit, with your money somewhere else... then maybe get back in at a much lower price again... if the board has been cleared out, and replaced with proven, capable, people.
Addicknt I take your point no more offtake.
However with a strategic review it may make part of strategy and may be limited to a number of years.
Q, they are two separate things. We currently have royalty deals, an off-take is different.
Understand addicknt as I made that mistake before.
I was just paraphrasing.
Addicknt,
any event that allows Maxit, bob et al to sell out will be the preferred course. Any events that spike the SP are pointless to them as impossible to sell out their 700m+ shares. If a JV resulted in delivering a divi of some sort then might be viable but any JV would either require SOLG to be cashed up enough to finance their share or a deal done to deliver a free carry of some sort. Both limit the payback or opportunity to sell out in full.
The CGP boys want a pay day. I genuinely believe they'd take a $2bln pay day vs a $3bln valued JV event as latter would only deliver about $1bln to market cap with 2/3rds being added in or used to fund through share of development.
One possibility for Maxit and Irwin (but only to a select few) would be to float ENSA on Canadian market as NEWCO. In process of listing Maxit and Irwin and others sell out their 20%+ stakes to Chinese. Rest of us wee shareholders then left with a stake in Canadian listed entity which likely then gets diluted to oblivion over the development years.
There's only way way Bob and Maxit get their full pay day and that's through an ENSA sale. On the upside, the chances of a low ball deal with Chinese likely to see someone like Fortesque, or Rio, Barrick, BHP etc counter offer and that's where it gets interesting for all involved.
As I said over the weekend... find me another Tier1 100% owned copper/gold mine that is effectively up for sale at a time when all the super majors will or are gagging for the metals now and in the years to come.
Tier1 mines are rare animals. Yes they cost big bucks but they are country and company makers and last 40 to 50 years+.
Russian and other related mines (Ukraine/Belarus etc etc) are not going to be options for the big boys going forwards. So they are being pushed to South Americas which is why the Chinese have been active there for years now.
The opportunities to grab an asset like Alpala are non existent.
SOLG will be sold. I have no doubts about that. But there's a time and a place and sometimes it benefits those selling the company to issue cheap shares to themselves like Scott and co and then drag it all out so shareholders end up content to take 50p as opposed to 75p or 100p etc.
When an offer arrives, Maxit et al will want shareholders in the mood to sell rather than wait it out and play hardball. Certainly working as fatigue sets in with some of the pi base.
Fort, agreed, a jv doesn't align with their stated ambition. However, it's quite clearly on the SR agenda, no matter how much I wish it wasn't.
Fort: not letting a dearth of evidence curtail his essay. Why let the truth get in the way, hey? đ
Addicknt, I'm not saying they won't present a JV (even though that's not what they want etc)... I think that might end up being what is tabled... but my point is... I'm pretty sure Maxit knows that any JV proposal will likely see BHP or Barrick or Rio Or any of the super majors come out with a counter offer that is not a JV.
At the end of the day... all Maxit have to do is get something tabled that seriously ruffles the feathers of BHP or attracts counter offers. That's it... simple as that. So of course the SR will be looking at multiple options going forwards. Why wouldn't you. You're not going to back yourself into a corner and reduce your negotiating power.
I repeat... Alpala is the only Tier 1 copper gold asset out there right now that the majors can buy which has 100% ownership. There are no others. There are M&A ops that can bring in copper (like Newmonts deal on NCM etc). But that's becoming harder to achieve now as a few deals done this year not leaving much left.
Unbelievably, there's more!
And it genuinely is not believable. WI has all but said that the SR is to look at making cascabel cheaper to mine, so that we can attract interest from a broader range of parties. And that BHP and Rio aren't happening. But fort doesn't let detail ruin his fairytale: he's too deep in.
âI repeat... Alpala is the only Tier 1 copper gold asset out there right now that the majors can buy which has 100% ownership. There are no others. There are M&A ops that can bring in copper (like Newmonts deal on NCM etc). But that's becoming harder to achieve now as a few deals done this year not leaving much left.â
What an utter load of tosh, have you seen who already have a stake in Alpala BHP, Newmont, NCM
LOL Can get 100 % ownershipâŚâŚ.that is pure comedy gold to
DM, I'm afraid your response may be a bit too technical for him to understand.
Adickt, I fear it's yourself who is struggling to get a grip and understand.
You now appear to be allying yourself to every crackpot on this board who posts anything you can cling onto as positive news.
It's bizarre really, because in other ways you appear to be quite a pleasant bright person.
You just seem to be taken in by the crackpots.
Shame really because I used to read your posts with interest.
I'm afraid the cosy few who chat with Caldwell and fortissimos of this world, have turned your head
Nal, if further proof were needed that you're a total idiot, you've just provided it. Utterly clueless.
Add âŚ. No further proof required
Adickt. It's I teresting to see the two hunters, Sean and novice, have had their foul mouthed and child like threats removed by the administrator.
Let's hope they start to take similar action with the fantasists who mislead others on here with there ridiculous claims
Nal, so you think it's ridiculous to claim that we own 100% of Cascabel? If I were you I'd think long and hard about investing as a means of increasing your wealth, because it's patently obvious you really don't understand the basics - just like your mate Tesla.
Talking of idiots. I see your still responding to my posts dreamer. Just remind me, how many times have you told all and sundrie you've filtered me.
Oh yes 327 times. Yet still respond. Take over tomorrow and your filter fibs, add up to no credibility
Lol thatâs just sumantics.
If someone wants cascabel theyâve got to fight BHP, NCM and now potentially newmont, it just gets worse and worse for the rampers on here, no wonder they are getting desperate.
I know who is favourite in that scenario and it ainât the rampers on here.
Good luck with that
Now you know why BHP and NCM overpaid for their stake in SOLG
The only one with any sensible conclusions is Quady
I only reported the one who can't stick to his word and stay away. Hopefully he's been suspended AGAIN.
đ
GLA
Tesla - personally, I think NEM will withdraw from Cascabel once they get their feet under the table @ NCM. That will hurt the SP.
Z