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Steve I would hope the SOLG that may emerge from the sale of Cascabel (if that's what happens rather than a full takeover) is a company that has learned from the past utterly wasted 6 years.
Our current predicament - with the SP way, way lower than where it should be - is the result of us making the wrong enemies at the wrong time and all too often cutting our noses off to spite our faces. Plus the "going into production" talk has been a self-inflicted disaster worthy of Liz Truss.
To take cash worries off the table mister...and its redeemable if theres a takeover...
Steve,
Where there is demand for the materials mined, then a fair price will follow as sure as night follows day. Why wouldn’t you locate all the gems by using geologists like Solgold has for quite a while now?
The Andean belt is a source of rich mineralisation, the future is clean electricity or as clean as it can be, copper is the solution hopefully Solgold has much of the answer.
Atb
If the infrastructure is built for Cascabel then it should be easier to pass on any other discoveries without all this drawn out grief !!
Steve, I guess some people think we will get a fair proce for the assets.
Can someone explain to me why some say we need to explore other areas costing x amount of millions and find great assets which nobody wants to pay a fair price for and have the same problem we have now
Medi ….. I tend to trust gamblers a lot more when they stand to lose their own money …. These guys certainly do . The point I was making is any bridges with BHP and NCM are now irrevocably burned, not what would give you the confidence to do such a thing?
Spin off the four subsidiaries, which NM has interest in to fuel his further exploration ambitions, and sell what is left of SOLG, which is the big slice of the cake, satisfies the CGP gang and takes us PI out of our misery once and for all.
If a deal is being worked out, this is the most obvious outcome.
if they dont back it up, we go to a penny stock. Hope they are responsible investors/managers and not gamblers.
Medi too late now for reconciliation
“BHP & NCM can go f**k themselves “
Followed by
“It’s all about taking these big companies down and embarrassing them”
Really hope they can back up this stuff ….. it’s like trash talking before a boxing match …. It fuels the fire
the key thing in the game forward is what alternative they have at hand? with the tough wording already used, wonder how the AGM would go? better to do it via Zoom to avoid ending up at the police station.
“For six years the biggest liability on SolGold has been Newcrest and BHP. They’ve talked down the asset,” Sangha told The Australian Financial Review. “This is a case study for junior miners as to why you wouldn’t want these guys involved in your project.”
- FROM THE ARTICLE
Note those words - "they've talked down the asset". Their own asset! And it's true.
There is a mysterious poster who has appeared on "the other channel" called Lowtrawler whom I am convinced is a paid shill for one of the big boys. Admits to being not invested with no intention to buy - but is somehow obsessesed with SOLG. Here, he says, "just to educate myself" and to "help others".
His spiel is basically that of the big boys, his weasel words always talking down SOLG, ****ging off CGP, and dismissing the value of Cascabel.
The other channel is really low value in terms of debate (slug never gets banned there!) so this guy stands out as someone who knows exactly what to say to spread negativity, doubt and fear amongst retail investors. He only appeared when we fell to the 14p level and has been hammering away with very detailed deramping ever since.
The gloves are off and the dirty tricks department are getting to work.
That's why we need the 0.6% royalty deal to take us to DFS to obtain a larger percentage on our NPV.
I cannot see any scenario where we could sell 30% of Ensa for anywhere close to 700 million.. just my opinion.
I think if we do manage to hold on to any of Ensa, as a minor JV partner, it won’t be more than 10% we simply can’t afford the finances attached to a large percentage… and from everything we have read from Sangha, they want a payout, not financial commitments over the next 8 years, and so do I.
If BHP were going bonkers over a 0.5% royalty deal then they'll go batsheeet crazy if SOLG sell 25% or 40% of Cascabel to a competitor or players like Gina or Maxit.
It's all very well saying we want to do this and we want to do that... but at every turn you are either going to see a bid or alternative presented by BHP or you'll see BHP walk away. That event has yet to unfold but it's coming as you can't cut the Alpala cake up and expect BHP to just sit on their hands. So any move to monetise Cascabel, whether minor or larger is a provocation and likely a deliberate one by the new SOLG team.
BHP don't have to do anything until the new SOLG team present the results of the strategic review or a part sale deal which will have completion and get out clauses etc to allow BHP to counter offer as that's all part of the plan/game is it not?
BHP can't really bid until they see what's tabled. The question is...if they dropped an offer onto the table tomorrow for CGP then that potentially scuppers the Merger and AGM plans. That's the only spanner that could be thrown into the works. Or... NCM could make offer for CGP. Trouble is, once you end up with 15%, you've declared your intentions and the other 85% could get very expensive indeed... so I think it unlikely.
If we forget about BHP entirely (hard to do) then let's take a 30% stake sale of Cascabel as a starter. Let's go with $700m as example. Great... we have $700m in cash, value put on broader 70% but .... we still have $2bln+ of funding to sort. The market is going to crucify us for that potential debt burden. In fact, based on $3bln Capex, you could flip it the other way and say 70% sale and SOLG retain 30%. SOLG bank $1.3bln. $300m gets spent on exploration and $1bln goes to funding our stake share in Alpala/Cascabel. I'm sure there's advisors fees and tax implications that can eat away at $200m with ease, so really it's more like $100m for exploration post that event.
I can't see BHP allowing any of it... but for me, it only works if SOLG sell a large chunk of ENSA. Retaining 25% to 30% is just about doable but open to potential horrific cost overruns which as per Turquoise Hill debacle... can see $3bln Capex become $6bln. Block cave to that depth is not straight forward and the market will take the view that it can't be done until it is proven so rerate will be 5 years away. Not good for LTH's.
All SOLG need to do is deliver a deal that looks good value for shareholders and then see what BHP offer as a counter to that. The danger is, SOLG present a maxit/Gina style deal which is not great and BHP then just offer something minor above that.
It's either going to play out and deliver 50p+ (poor) or it's going to go Noront style and deliver 100p+. The assets are not in question and the PFS shows that 75p to 150p all doable dependent on which numbers you take on board... copper at $3.7 or copper at $6 makes a huge difference and lets face it, in 2027, copper is not going to be $3.7!
Morning all, I don't think NM has been silent on this matter - his comments in the recent DGR Global RNS indicate he believes the best way forward for SOLG to restore shareholder value is through further exploration across the portfolio.
The company is no longer talking about production. The word isn't even mentioned in the AFR piece posted yesterday. This is the key paragraph:
"It now seems far more likely that SolGold will sell part or all of Cascabel and use the proceeds to return to its core competency; greenfields exploration."
The above appears to be what Sangha and Mather want, perhaps Irwin just wants out altogether with a sale of the whole company. I guess there is a chance we retain a small stake in Cascabel which in several years time will be a nice little earner, but it's hard to see why a buyer would want us to have a seat at the table (we're not exactly in the best shape as a company, are we!).
Sorry DBW missed that one.
I have no idea, but I imagine that the people who comment on the companies do so on an honest basis.
They probably have no connection with the fund managers who run the funds.
Q good points well made ….. you didn’t comment on why they would consistently vote with an entity hell bent on getting the company for as little as possible therefore rendering their own shareholding much less valuable?
As for evidence there will clearly be none for obvious reasons, but let’s leave it here
Okay let's try and have a sensible discussion DBW.
Black rock is a fund manager, it trades Solgold in funds.
It is an enormous company and it will defend its reputation and fire anyone who doesn't meet its high standards.
They are never going to manipulate a share price or put out false information to control it.
It's just the selling and buying of units in those funds that determine how much stock black rock holds.
We have had our differences, but I don't label you as a conspiracy theorist unlike some of the nutters on here.
Do you believe Solgold are so important for the success of black rock that it would risk its hard won reputation.
They wouldn't do it for the biggest companies in the world.
Lastly on volume.
We are talking about small volume.
You made the point small volumes are easy to manipulate.
That's not true for the following reasons.
Why manipulate a company with small volumes. It makes no sense, the small volumes keep the price low.
Next people are on here obsessed by people borrowing shares.
Why on earth would black rock do that. It would just buy and sell on the open market to reflect the size of it's funds.
As you know funds are weighted and I am guessing Solgold is less than one percent.
If it was higher then the weighting would have a disproportionate effect on the whole fund.
These things are carefully calculated.
Tesla …. Either way you have to admit it’s fascinating watching this unfold .
Poor old Quady has been telling us for months to trust and believe everything the company says.
Now that they are basically telling us straight that "going into production" was just a bluff... he doesn't trust or believe anything the company says.
They've really crapped in his kettle.
2Luke, I think you're quite right. My mistake.
Tesla you may be right that’s what opinions are all about. You posted something about me putting inflated target prices on this …. I’ve always made a point of not guessing at eventual prices so I’d be interested to see where I did that? Having said that I do believe we’ll end up way north of where we are now … this looks all set up for a plain and simple takeover to me ….. of course there are risks and nothing is guaranteed but I like the odds …. If you don’t get out ….. assuming of course you are invested?
DBW
That’s your view, you don’t know what agreements blackrock have with any company behind the scenes.
Not everyone buys the’ this is the greatest mine discovery for decades’
Someone posted a press release about SOLG’s mine and if it was anywhere other there than equador the SP would be £1+
Therein lies the issue that most holders on here don’t get its 18p for a reason and no one is going to pay anywhere near the value posters on here think it is worth
Q, I know you place a great deal of emphasis upon evidence. As far as the $1bn is concerned, the company never provided any - from memory it was a comment made by Ingo and nothing more.
My guess is that he'd had meetings with various potential funders and they expressed an interest, but caveated that interest by saying "come back when you've got something tangible" i.e the BFS. In my opinion there never were any firm commitments - they would have released an RNS if there had been and expressions of interest do not amount to done-deals.