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I would also bet the Ecuadorian mining ministry know this also.
I believe it would be a mistake to try and take this to production
We are an explorer, and a very good one
Production of a mine on this scale is a whole different ball game and I’m confident NM knows this, despite his preference towards production in the media.
At 22p we would be pushing it to get over 75p at this stage, which is what I believe NM has concerns about, hence Citi getting onboard.
Fact is though he couldn’t actually stop it happening if they went for it, which would also then free up BHP to counter bid, pushing the price up regardless.
It’s too big for one company so which two or even three will it be is the Interesting part for me right now.
Right. Personally I think £2 is higher than fair value at this stage of proceedings
Two majors could pay 50p each from here and get the lot and can’t see how NM and Citi could stop that happening even if he wanted to.
Most of us agree it would be very much out of the norm to make a bid before PFS, which he has said Will hopefully be with us before end of October, good timing with regard to BHP.
Good evening Earthling, just for the record, I have not said no one would pay 1 pound a share, I have always maintained, that no one will pay full value. As we prove up more, the value increases, yes some dilution, but I think because we cannot assign a value to the other sites, doesn't mean they have no value. The licenses and acreage we own, in my mind gives value. So if a bid based on fair value came in today, I would want to see just over 2 pounds a share. Don't believe we will get it, and NM has said he want's full value, or near to it. So he will carry on.
£1 won't look so expensive when we're back at 40p...
Good afternoon Earthling, I am not sure we won't sell. I am just listening to what NM is saying and doing. He has done, what most explorers cannot even dream of. He has discovered a world class resource with more to come. He has from the word go, tied in BHP, so they cannot do anything till October 15th. If we had not had Corona, then we would have been further along the curve. That as far as I can see, is the only thing NM has not seen coming, but to be fair, no one did.
We are about to finance the construction of Alpala, We have enough funding for 18 months exploration. We are not in the same boat, as other explorers. We are not distressed, and don't require any more money for the foreseeable future, apart for the funding to build Alpala, which I believe is in hand. Don't forget the book, the distribution of the various holding, make this very difficult to bid for Solgold, otherwise we would have had a bid by now. I believe it's going to become a lot harder to bid for Solgold in the future. What happens if as NM has said, we get very limited dilution. Well we get some dilution if the CGP bid is successful, but we also pick up a decent holding of Solgold shares, and own 100% of Alpala. Let's say we don't get CGP, that one of the companies that could bid for us gets it. Well NM could say dilute 25% and bring in another shareholder like Barrick, and give them a 2 year standstill agreement like BHP, that would make a takeover virtually impossible. In short this can be defended in so many ways, because we are not in a distressed state, and don't need the financing. Don't get me wrong, I wouldn't mind a fast profit, if we got full value, but we won't get full value, with a bid. So I believe NM when he says he's going to production, as we slowly see him building the team, to enable him to do it. All the best.
Rio have had a chance to take a stake, not out of the running as such but it looks at this stage like BHP, NCM and possibly Barrick will end up owing this mine, in a number of combinations of those 3.
Quady the reality is this too big for one major alone, let alone SOLG.
You say no one would pay £1, however between two majors this is still not big money, especially as BHP already have a stake.
yes, its the grades that will make the difference, already have one monster re volume of resource, and a rich core.
The chances of finding a ultra high grade resource are high in Ecuador, it's just time.
Thats why i'd like to see Alpala sold to a couple of majors who can mine it whilst we crack on and do what we do best.
If Carlsberg did explorers
production is a whole different ball park.
Earthling another titbit
“ the first project we will be drilling, Porvenir, in southern Ecuador, has an outcrop on it that is nearly twice as long as the outcrop was in the creek at Alpala and is significantly richer”
I know you're in the production camp, but you an't be sure the majors won't pay a decent price for us.
If they want us , they will get us, it's that simple.
Sorry DBW, that's the point, no one is going to bid that high. We are going to defend against low ball offers, if successful, we won't even get a bid. All the best.
The more you listen the more it’s clear he’d sell
“We are aiming to set Solgold up an independent major copper and gold mining company in Ecuador, and if someone wants to buy us at some stage the price will become so high that it indefensible “
They bit I enjoyed
“ the view majors have had about juniors up until recently is that juniors are the short term custodians of majors’ assets.
We certainly don’t see it that way.
It’s our asset.
If they want it they have to pay a fair price “
Clear as day he will sell for the right price and not less or this goes to production
Miagi good sign imho
Very interesting part about Craig Jones (16:20mins) - one possibility is that he leaves Newcrest and joins SOLG at some point in the next year. Watch that space.
This interview is pretty recent as they discuss Newcrest purportedly wanting to sell its 13.57% stake.
One of the better interviews by NM that I've seen. Plenty of meat on the bone about financing.
Equity portion will be done at Project level (i.e. based on NPV) - similar to the streaming then. They did project level equity issuance at KEFI, a much smaller gold project admittedly, which seemed to work pretty well (notwithstanding the political issues in Ethiopia which have resulted in delays).
Yep Q he was still talking about Newcrest with regards to cave design
Let me add my thanks sjn1980, it looks older, but dated today.
Was this new or a couple of weeks old ?
Thanks sjn
thanks sjn1980 ;o]
Thank you for the link sjn1980 well worth a watch .....well done NM
Pinot
:0)