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I agree addicknt, but it makes sense.
BHP or NCM are never going to bid for Solgold.
That was never their plan.
The plan was to acquire a bigger percentage as fund raising went on.
This is why Solgold have played a blinder and kept the book diverse, so no one entity has enough to make a bid that is hostile. As the other parties would have to sell up cheap.
Each time a offtake or royalty is enacted, Solgold get funds and the value is reduced for bidders.
I can now see something like a ten percent offtake for a billion and loans to support most of the remaining money with minimal dilution. Just as Solgold have always said.
We await the strategic review.
Lastly how about Solgold can reduce the ten percent offtake by half over the first five years with a buyback.
Add I think the sentiment was along the lines of
Go **** yourselves and stop trying to **** us …. And I heartily agree
There was a recent presentation where it was stated that if the likes of BHP wanted a greater stake they were free to buy shares in the open market like any other shareholder, those were clearly shots fired and this has been smouldering away for years.
They’re like vultures circling over a wounded animal it just so happens this animal has made a miraculous recovery and they’re being denied their free meal.
Nice insightful summary.
I prefer the plain speaking, and also endorse the sentiment.
everyone else I'd love to read the mining journal article, but I'm too mean to pay for it. Assuming the snippet we can read is accurate, I find it extraordinary that a person who runs a retained advisor would use such language about a major shareholder of the company he's representing, particularly as you would expect the target of his abuse to be a potential bidder. I can't see Citi resorting to such behaviour - at least not in public. I've never seen anything like this before and it doesn't strike me as being very professional.
Having said that, I understand the frustration and am not in any way supporting BHP's behaviour.
I suppose the key question is how will BHP react? Will they walk away, or will they respond aggressively?
One thing's for sure, the run- up to the AGM is going to be absolutely fascinating. Bonfire night was last week, but I reckon we're going to have our very own fireworks. Funny how all the action here takes place just before an AGM.
RichBetter - it's hard to say with certainty given the strategic review taking place rignt now. I think all options and proposals have to be considered.
I'm not against anything. I would have a preference for the company still having control of it's assets coming through the other side of the forecasted downturn because that is when copper prices will start to bite as you say and that is when SolGold will be at it's most valuable. It'll be transformed from where we are now at 18p/£420m anyway and there will be a buegeoning spot price to support it.
However, if we have to move Cascabel on in 2023 and there's both a decent offer on the table and a way to mitigate an excessive tax take then it's going to be worth looking at. I think there's some merit in sellimg Cascabel off, letting an acquirer buy back as much of the royalty deals as they can. SOLG then starts developing Porvenir and exploring the regionals with half the loot (other half back to shareholders via a special dividend.
That should give holders a nice cash kicker and it should provide some sort of exit from the stock for those who want it.
I'd then be looking to Porvenir as an asset where SOLG can become a producer in their own right. It makes much more sense than Cascabel. The regional work would involve capitalising the 4 subsidiaries and setting them to task to find the nest top assets.
Bozi ignore him I've filtered him
Cornered rat, my hole, sounds like a film I once saw….
Covgaz - he's just asked if BHP are a "cornered rat". Yet you like that analysis?
You and 13 others. It's ridiculous. Cornered rat my hole.
It's going to be pretty interesting to see the reaction on this board if the strategic review doesn't yield the outcome plenty on here want, and with SolGold hiving off future profits in favour of cash up front, it's more likely SOLG will be the cornered rat, as we have been for much of this calendar year. Only next time we'll end up flogging a stake in Cascabel to someone like Mitsui for much less than fair value.
There's not much thought going on in terms of what impacts our actions now can have on our future outcome. Everyone just seems to think it'll be an easy sell, as they have for the last 5 years. Well we're still here, unsold and propping ourselves up with deals that have prompted war across the boardroom table.
That isn't something to crow about.
Novice is just angry and bored and wants to cause drama and disruption for the board thats all...
leave the guy alone. Pretty good insight , lots here liked the input.
I do not have access to this article but it seems to express a popular opinion:-
https://www.mining-journal.com/m-amp-a/news/1443202/maxit-bhp-and-newcrest-can-go-k-themselves
How about we try this, this weekend. Let's show everyone how grown up we are and not start a needless argument?
It will be a first but lets give it a go.
No Novice, let's not
Do you mean the slug in the room NoviceHunter?
Yes, Nellie is sat in my living room making a trunk call on my phone.
Is anyone going to mention the elephant in the room this evening ?
11.18% up on the week - I'll take that. Copper on a good run too... let's get some more positive RNS's out next week which you've been sat on for ages Solg to keep this momentum going.
Thanks for bobbing in Daryl, Scott... I hope you brought a For Sale sign to your first day at work?
Have a lovely weekend ladies and gents. C
Well said Fortissimo.
It's actually very embarrassing for Henry and BHP as majority of the city will say ...."disappointing high-cost" finance option vs what Mr Henry?? Vs an equity placing which sees BHP gain another 3%+ in a junior at a low cost?? And at what cost to 'all' shareholders is that Mr Henry?? Dilutive cash raises via the market that line Super Majors pockets with cheap shares is the way to go isn't it Mr Henry?? Well, perhaps it is the world class calibre of Alpala that makes getting a royalty deal done in the first place as there are many Juniors out there that can only dream about that and instead have to succumb to cheap placings.
What I dislike most is the arrogance of Henry and BHP. It's like he doesn't understand that bulk of shareholders do not want the high cost of dilution. And as we've discussed already, it's only high cost if you offered SOLG a better deal Mr Henry. It's just a shame that you couldn't say.... yeah well... look mate, we offered them $25m at 45p and they took the high cost royalty option or more like... yeah look mate... we offered them $25m at 18p so I guess they took the right option with the royalty deal.
If I were Lasso, I would be thinking about other players like Fortescue and Rio or Anglo as potential partners in Ecuadors mining future. Not some arrogant self interested tools like BHP.
He makes a good point.
I would imagine in the corporate world it is not the done thing, for a CEO to comment on the actions of another company. Even if they hold a small stake.
Is the CEO of BHP allowing his mouth to betray his thoughts
An interesting comment from Mr Irwin:-
https://twitter.com/bigdude6669/status/1591153771484413953?s=46&t=ddOuVHaRXKUZiQ_eqNYt_g
Why Darryl was shown the door?
Jerry - how do you feel towards Newcrest now? You seemed happy to have them on board at GGP but I'm guessing that's changed recently after their stunt there?
Bozi,
Sounds a little bit like a threat.
Be very careful what you wish for folks,and think this through before you recommend Fort's posts. He's creative, eloquent and articulate but by golly he's also a little naive.
I for one would happily see more royalty deals if that's what we need to do.
It's totally in Bhp hands to do the right thing amd plenty left there for them if they want to settle this properly.
What they might not understand is someone else may have designs on Ecuador and giving Bhp another slap across the chops.
Not sure why you seem so against this being a solg holder?