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No one is preparing to buy us.
No one is looking at us, with a view to buy.
No rumours exist to that Solgold will be sold.
It is only certain individuals on here that say these things with no evidence.
Their only evidence is well we wouldn't say anything.
Well the reason we don't say anything is because there is nothing to say.
If there was, then even with a rumour the share price wouldn't be what it is now.
Let's discuss the strategic review and the way forward for Cascabel as Solgold.
That's what's happening, not any bid rubbish, which I have heard here since 2012.
It got boring years ago, it's certainly boring now.
Quady. The true facts. Put far more eloquently than I ever could.
As I said the other day. People on here are spending their whole lives discussing what's not there.
Solg is and has been up for sale for several years. It's the only option open to us. Unfortunately nobody wants us.
Despite adickt and other desperayely, pinning everything on this ridiculous data room hope.
It's also surprising how all of the gang who told us to vote for mather at the agm. Now distance themselves, and profess they voted to oust him.
Complete morons. I think adickt and Co know who they are
Quady,
Those first two lines of your views, may I just say what a ridiculous thing to say in my opinion.
Are you on the board of Solgold? Are you privy to inside information?
Solgold sit on a fantastic find, a find that is seriously needed, you really believe no one is interested, no one is looking at Solgold?
Then why do some very well educated and very knowledgeable companies have shares in Solgold?
Not the wisest reply you have ever made Quady, just because a company doesn’t say talks are in progress is that they need to be sure of facts before spouting them.
Atb
Good morning Mathersfinger.
Your missing my point.
I think Solgold is a great find.
But for one minute pretend I had posted this ten years ago.
You would be saying the same thing.
My point is we should be discussing the way forward for Solgold.
Not trapped like a bunny in the headlights of a car, saying if no one buys us we are doomed.
We are not.
We must take Cascabel forward and build it.
Quady,
Your reply to me regarding your that post makes no sense, reread what you have written.
For you too come out with those thoughts, then you are no different from the one's who spout it will be sold soon. Why not just wait for the company to release RNS’s, we will be told one day, time lines are getting a lot tighter, so maybe we are coming to a final solution soon whatever it may be
Atb
What is 'final' about a new mine plan? Strange statement.
Lots of arguments here about 'facts', that then turn out to be people's biased interpretations of tid bits of information. If we look at what we can know for sure, Solgold has not received a TO bid, despite lots of important work on cascabel since initial discovery. So, besides sitting and waiting for a bid, all the company can do is plan to make the most of the asset. Data room parties, benevolent bids from state-backed conglomerates, unprecedented bidding wars for a LatAm jurisdiction... It's just wishful thinking at the moment. But rampers have to do their job, I suppose
Good morning Mathersfinger, just reread my post.
It makes perfect sense.
You say wait for a RNS.
We have waited over ten years, every week someone on here saying a buy out is imminent.
It's just not true and my position is not the same.
I have continuously been proven to be correct.
We await the strategic review which the so called experts on here say isn't going to happen.
Q, one of the biggest issues with your argument is that if no one is interested in buying Cascabel, as you allege, then funding it is going to be equally problematic, particularly as we are such a small company.
I have yet to see anyone provide a compelling description of how this might be funded without massive dilution or ruinously expensive debt (assuming we could even raise the debt). I know you've now shifted your opinion to favour a jv, but again, I'm not sure why you think that would work for us. If we are on the back foot, as the Aussie poltroon suggests, how are we in a position to negotiate good jv terms with a large multi-national, who are not exactly known for their benevolence?
Btw, as you know, I agree with you about the SR, although not necessarily with your view of its conclusions. The one thing I would like some clarity on is a statement from the company about about the reference to funding in relation to the SR being available for consideration by the end of H1. It strikes me that it's a fairly legitimate to ask the question 'what's happened?'
Morning Quady, I think the problem is the amount of time some people spend on this board obsessing about Solgold. It is an addiction for some.
Just crack on with life.....its not infinite! I like everybody else want some nice news to land, but what we wish for and what we get are different things.
That's my drop in done for a couple of days. Nothing has changed for weeks.....back to reality.
Good morning addicknt and Copperpot.
Hope you are both well.
The problem we have is that if we don't construct Alpala then why would anyone bid for us.
What's the hurry.
They just sit and wait till they can pick us up on the cheap.
We have a strategic review coming and it's purpose is to find a way to advance Cascabel.
That doesn't mean sell.
It means what it says.
Lastly good morning Copperpot.
Copperpot has called this correctly for all the time I have been here.
He is the most accurate poster here.
He was correct over a decade ago, when he said we were in for the long haul, and he got to the JV position before I did.
Plus many other calls along the way.
As I have always said, we may get a bid, but the facts, evidence and what the company says doesn't point to that.
People on here take one line out of a whole presentation and keep repeating it, and ignore everything else.
That's just mad.
Add: what percentage did we have to give up for $50m? What has changed since, aside from 100% ownership?
Hi Quady, thanks for the kind words... appreciated buddy.
I'm not criticising anybody...but some just can't accept the status quo at present and try and put their own twist/desire/spin on things. We are all entitled to our opinions of course, but some need to be more realistic with their timelines/expectations. The company has never once hinted that there's a sniff of a sale, yet everyone was hysterical saying a sale was imminent. They're not reading between the lines!
Take care buddy.
AgArCu, that was a royalty deal and we were giving away revenue not a percentage of the company. They are not synonymous.
Q, as I said, I'm with you on the SR and the outcome will determine whether I continue to hold these shares or not.
Hi Q
With respect, why not just send an email to Scott/NM/other managers if they plan to go to production? They will reply
Interesting that both Add and DBW have made noises about dumping these shares if the outcome of the SR isn't what they want, i.e. a full sale.
I suspect they won't be the only ones if SOLG push some sort of JV. No other financing structure works. Further royalties will be expensive, will squeeze project economics and will be difficult to source without traditional debt that will come with a hefty cost of capital.
There's only one real option remaining and I hate to say that because I was open to SOLG pursuing production, but it's no longer realistic and it hasn't been for 12/18months now.
Fully aware it was a royalty deal, add. How much product did we have to give away for $50m? Aside from the copper price not performing as we'd like recently, what's changed? The terms of a similar, considerably bigger deal would be no more punishing today than I'm times of lower interest, because the sorts of companies paying royalty deals aren't involved in short term interest-rate linked finance. They are more akin to venture, and some have very deep pockets. So I ask again, what % for $50? And what percentage would we need to agree to for an installment-lead $2b? That ought to either get the diggers digging or the majors bidding. They thought the last round was 'expensive' - I doubt they'd like 25% written out of the equation.
Again, we make decent money in a few years even off a £60m a year income. We don't need the full billions.
0.6% AgArCu.
The point wasn't that royalty is interest linked finance. It's obviously not. But do you not think that SolGold's creditworthiness with conventional lenders changes if the company layers on 3 or 4 royalty deals?
There's obviously a multitude of factors that can impact the sort of deal that a royalty company wants to offer.
That line of credit is now closed IMO.
1) every previous creditor only gets their money back if the minerals come out of the ground.
2) the percentages they've acquired for their money are capped, so no future royalty sponsor would be worried about changing terms
We don't have a credit rating hampered by multiple credit cards. We have a f-ton of hard to get at ore with a fairly stable cash value that's only realised when it's out of the ground. Those who buy royalties have a little insight into how mines should be built. They will want a clear plan linking how their money is spent to how they get it back.
Is 2bn cheap for 25% of the product from cascabel? Yes. Would they get their money back if the mine plan is right? Multiples. If we mess it up and need more cash, can we go up to 75% and still get rich? Sure. We only need a tiny fraction of what's in the ground to see decent long term dividends. So long as you own a few 100k here, you're sorted.
Not particularly likely, but a more likely outcome option from the SR than 'wait for a bid'.
Next year things will look very different here
Bozi, further royalty deals are off the agenda.
In all probability I will sell if a jv is announced, although it will depend upon the structure. For me if we go down that route we fall into the GGP category and it would become a buy further down the road. The opportunity cost of holding until production occurs is simply too high.
Really enjoy it with you speak so decisively, add. Complete rubbish, but soooo manly 😂
Nice attempt to close down discussion. How many royalty deals have FN done where they weren't first to the party? Answer? The majority of them. They don't care if less than 5% is already sworn away- they know they will be majority investors and able to drive design. Look at panama. Deep pockets don't get screwed.
Not sure it is rubbish AgArCu.
With 1.6% NSR already accounted for, how far do you think SolGold could go?
Another 3.4% might fetch them £250-300m at a guess. That's incredibly expensive to shareholders over the life of mine.
Bonds and bank loans... forget them right now and for some time to come.
There's a good reason that Scott is looking for cost efficiencies now and it's because the runway isn't there for financing without them.
AgArCu, I guess you haven't paying too much attention. The company has actually said there will not be any more royalty deals. Aside from their statement, you appear to be unaware of the governments condition and the percentage of revenue i. e top line revenue. they will take. Just how much revenue are you happy to see disappear? Suggest you listen to what the company says.
Ecuador will say they want 50% right up until they realise they need fixed income and don't really want to be seen to co-sponsor private company investment. Hence FN example- look how much they've taken out of pre-conditioned contracts everywhere they operate. It's all just talk until the rock gets crushed.
As I say, we only need clear £45-60m a year to make very good money here. What that would equate to as a percentage depends on all reset denominators, obviously.
As I say- not likely but more likely than an sr that says we'll wait for a bid, which in the absence of a bid (and WI has put a nail in that) appears to be most people's preferred outcome?!
You should read some of the recent comments on this subject. 6/8 percent has been the level mentioned by the government.