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RCGL - good point and I would imagine that the presence of the two Majors on the register was an important factor in their due diligence - adds a lot of confidence knowing that two big guns have gone in ahead of you!
Makes sense
Z
Listen to what Paul Brink the CEO of Franco Nevada said in that recent interview:
"It will be a block cave, but you've got BHP and Newcrest invested in the story"
He just casually mentioned that as if it's no drama, their involvement is a plus point... I realise that it doesn't really matter to FNV who builds the mine so long as it gets built, but to me that implies that it doesn't have to be a zero sum game between Solg and a major. It's not takeover or go-alone as binary outcomes. Highly likely a collaborative approach could occur, either earn in, formal JV or whatever.
Quady - "Companies don't lay awake at night thinking, oh dear if nobody buys us, then we are not viable."
I think that might be exactly what's keeping the Cornerstone board up at night ;-)
Excellent point (your 07:23) theIceberg.
So some think the finance package and streaming offers are a myth or lies?? So if there is no take over Solg grinds to a halt at Cascabel? Sorry that is stupid or at best wishful thinking.
Quady, sorry, but that simply isn't how they work. They are not the Petrofac of the mining industry, they are the worlds biggest miner.
Agreed Jerry, you have cracked it. I would not be invested in a company, that I thought was lying to me. The big question, is have you cracked the wine, and what is your opinion on the price paid. Is the wine, as good as Solgold. All the best.
We shall see addicknt, they own a share of Solgold. Solgold has to issue more stock at some point, for proving up, other concessions. If BHP, were favoured in this way. Part of the price, maybe bringing Alpala to production. Solgold has many ways to bring Alpala to production. If BHP wants further equity, then they need to talk to NM.
Morning Quady, I think I have cracked it. The major difference between your opinion on the outcome, and mine, is that you believe NM and I dont! Everything falls into place now....
You're correct Dbw, we are not mining anything yet. But make no mistake, we are now a mining company. When a mining company is setup, it doesn't stop being a mining company, until we are pulling ore out the ground. We are every bit a mining company.
Quady, that's not the way BHP work. They are not a sub-contractor.
“ But this is now a mining company, with a major find.”
Ehmmmm no it’s not Q , it might be one day but I don’t recall us mining anything yet.
I wasn't on about a jv in the typical sense. I was on about Solgold hiring the service's of the likes of BHP, and paying them.
One of the reasons a takeover is becoming more unlikely is time, everyday that passes, with no takeover. Is a day that gets closer to government dates, on how Alpala progresses. We only have so much time to get the DFS out, so much time to get to production, otherwise we lose our concession. The problem is a friendly takeover takes a lot of time and resources. A hostile takeover, that is defended, takes more time and more resources. Everyday that passes, makes a takeover harder.
Yes, a jv with BHP would make perfect sense, a win-win. Certainly less risk than solo development.
Events will overtake the sp sluggish soon, anyway.
The company will extract value by proceeding with mining of the this globally significant resource. It will not give itself away and rollover without a fight. It is just that some want a buyout to cash out now, they are nor prepared to invest for the longer term. This dies not affect the company though, this will get mined regardless.
Agreed allthatguff, the market doesn't think a takeover will be launched, for all the reasons, that a takeover hasn't been launched so far. BHP, I don't believe will agree a price. They won't go hostile, for all the reasons I have outlined before. They will collaborate, with Solgold, to bring this to fruition. When you think in this way, the share price movements make sense. No need for any conspiracy theories. We are progressing towards production. Yes we will get fluctuations on news, but the big RNS, will be on the day, we are open for business. All the best.
iceberg - That's not the point I am making. SOLG is punished (poorly rated by equity investors) because it operates in Ecuador. The only way SOLG is able to extract material value from its quality assets is to sell itself to the highest bidder. We will never enjoy a re-rating, ever. Our location is this company's Achilles Heel
Sell the company Mather when appropriate to do so
Good morning Schlemiel, couldn't disagree more. I don't know if you have worked for a company, or indeed yourself. But this is now a mining company, with a major find. Companies don't lay awake at night thinking, oh dear if nobody buys us, then we are not viable. Solgold is a highly viable company, and companies like Solgold defend takeovers, they don't capitulate. This has been stated many times before by NM. Nobody can build Alpala quicker than Solgold. Because of the governance. Yes another company could acquire the licences, but they would have to meet the governance, laid out in ENSA. Solgold will obtain value, when we are producing, and we have cash flows, for debt repayments, NSR payback, future exploration and proving up, and not forgetting dividends. We are at the start of something exciting.
A major is far far less likely to get local approval, Lundin has done quite nicely in ecuador!
" market is punishing SOLG for operating in Ecuador"
Simple solution, Solg must then punish the market by getting the conditional finance and proceeding with mining itself. Smack the market in its chops. Ridiculous at the moment.
"what the market thinks"..
That is the issue, the market is not thinking at the moment and is a bit thick. What does Mr Market expect to happen in October ..nothing?
Local referendums cause uncertainty, increase risk and damage investment. A major is far better suited to operating in Ecuador. SOLG will never enjoy a rerating of the kind we all would like to see simply because of its geographical location of its assets which are of course first class. If SOLG's assets were in Australia we'd be 50p+ now. Mather must sell SOLG to a major or else shareholders will suffer poor returns due to jurisdictional uncertainty..the market is punishing SOLG for operating in Ecuador
I agree with you iceberg, but the problem is not what you or I may believe, it's what the market thinks.
INV clearly feel it's worthwhile informing the market and I think their approach is correct. We had to wait an age before NM decided to inform us last time around and the delay caused much uncertainty.
A simple statement would be most welcome.
By the way, there's always an assumption that if a referendum was held, mining would be rejected. Is this really the case? We all know the economic benefits to the locality are huge and would people really turn down the opportunity for stable and long term employment; plus all the associated community benefits?