Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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What will be your net cost of capital while you wait 10 years for your £3 and dividends...?
You're kidding yourself if you think that NM, WI, Bob Sangha, Brooke MacDonald and even most people on here want SOLG to take Cascabel to production...
And you're missing an important point...
You may be prepared to hold a big chunk of SOLG for years to get a dividend which may be 1/2% and then opnly in 10 years time, but..
I want to put the proceeds of a successful takeover bid into a whole echelon of bashed down high yielding FTSE stocks such as Persimmon, on a historical yield of 18.75% and with a full order book...but I expect to buy them even lower when I cash our chips...that way my £1 would be £3 with dividends in just over 5 years and I'd still have an annual income of at least 18.75%
Give it a rest RK with your obsession about the share price, Day in, Day out!
Z
Exactly Red .... that's what they were shouting from the rooftops until recently
Sure Copper .... all about opinions
My opinion is that there will be a rerate soon , more news out of left field and we maybe be able to obtain decent shareholder value sooner than we think
The true live spread in Normal Market Size is 18.17/18.452...NOT 18.02/18.50
And ~I'm still bid 18.1254 for 300k...
DBW, it depends which side of the fence you're on. Maximising shareholder value for me (and probably others (including NM etc) is .......production and a share price of £3 -£5 in 5-7 years time. Some here would be happy with less than a quid within a year.
Like I said.....it depends what shareholder value means to the big boys, and not us minions here.
Good luck matey.
Full text below, if you can't access it
"Brisbane-headquartered SolGold has secured $US50 million ($77.3 million) in royalty financing as it looks to advance its flagship Cascabel copper-gold project in northern Ecuador.
SolGold, which has BHP and Newcrest as big shareholders, said on Tuesday that it had struck a deal whereby Osisko Gold Royalties Limited will provide the funding in return for 0.6 per cent net smelter return royalty.
The latest deal under chief executive Darryl Cuzzubbo comes after SolGold confirmed it was in talks with potential partners in Cascabel as part of a strategic review of the giant copper project.
Perth-based SolGold chairman Liam Twigger said the funding removed the financing overhang that has encumbered SolGold.
“SolGold can now devote its complete attention to the strategic review process which is currently underway to maximise shareholder value,” he said.
SolGold, which is listed on the London and Toronto stock exchanges, had to withdraw a potential capital raising in July.
The company then parted ways with former Oil Search executive Ayten Saridas, after her short stint as chief financial officer, and two directors. It has a prickly relationship with BHP, which owns 13.6 per cent of the stock, and Newcrest (13.5 per cent).
The financing deal with Canada’s Osisko includes an option to buy back a third of the royalty, which covers returns from the Cascabel licence area.
Osisko chief executive Sandeep Singh said SolGold had one of the best copper-gold discoveries made in the past decade.
“SolGold was a first mover in Ecuador and we view the broader Cascabel property as having the geological potential to support significant further discoveries,” he said.
In October, SolGold unveiled a deal to simplify the ownership structure of Cascabel through a friendly tie-up with co-owner Cornerstone Capital Partners.
The deal would see Cornerstone, which has a 15 per cent stake in Cascabel, emerge with a 20 per cent stake in SolGold and at the same time dilute the BHP and Newcrest stakes down to just over 10 per cent apiece.
SolGold would then own Cascabel outright and become a more tempting takeover target
In announcing the deal, SolGold confirmed the strategic review aimed at securing enough longer-term funding to see it through to a final investment decision on Cascabel."
Yet another excellent find DBW...
And for those who are STILL convinced this is going to production, please reread this:
"“SolGold can now devote its complete attention to the strategic review process which is currently underway to maximise shareholder value,”
Shouldn't he be saying:
"“SolGold can now devote its complete attention to the development of the world class Cascabel project"...?
Look at that wide spreasd asgain...defensive?
I suspect that one MM has a big buy order that they are still working, because...
I'm bid for 300k at 18.14 against a market quote of 18.02/18.50...
https://www.afr.com/companies/mining/solgold-gives-up-royalty-slice-to-help-fund-copper-project-20221108-p5bwjc
Perth-based SolGold chairman Liam Twigger said the funding removed the financing overhang that has encumbered SolGold.
“SolGold can now devote its complete attention to the strategic review process which is currently underway to maximise shareholder value,” he said.
Writing on the wall
RK - I'm talking about actual asset values rather than those capitalised on the balance sheet. I can't speak for Noront but clearly only a fraction of the value of the project was being recognised.
So you take a starting valuation, be that a NPV for Cascabel or EBITDA multiple, discount it to account for the level of remaining risk and then subtract the outstanding debt at asset level being the two royalty deals.
Same exercise for Porvenir and a sum of the parts for CGPs other assets.
From there you can build out to a value for the corporation.
But I'm sure you know this.
Copperpot,
stop talking carp
SOLG will not be going to production. Ask Irwin and the CGP boys.... they have already told you where this is going and are so sure of it that they signed over their company and only bit of leverage in the matter.
These are money men. Maxit et al. They don't move over to another side unless that side is where the money comes in.
Now put your tackle away.
So try this one Bozi...you'll love it...
Noront's Total Assets at their last year end before takeover were $28.5 million
Their Net LIABILITIES were $38.4 million.
Wyloo Resources are paying $612 million...
They had $65 million of debt...
Please explain in the following context...
"That's how it works Fort, all debts are subtracted from asset values when it comes to determining a company's worth, which is so you can be sure we'll pay for it one way or another."
We have a PFS for Alpala that reduces the capex massively.
Has anyone considered the updated PFS may reduce it further.
Add to that upon completion of the DFS, we have options to finance Alpala to production.
I think that the review is coming in parallel with the updated PFS for Alpala.
Copperpot. If you are thinking about mine construction, you may end up with this being " the one that got away. "
Once we get that smelter on site - available from Amazon (see link below) - it's only a matter of first getting the low hanging fruit (the gold and copper lying around on the surface) before a couple of JCBs start digging the tunnel (or block cave if required) down to the good stuff, getting it in that smelter and giving Osisko their gold royalties in a briefcase each month (though watch out boys, that stuff is heavy).
Keen shareholders could be asked to come onsite and get busy with picks and shovels to help keep the cost under $50million per month.
I've heard tell that the first major gold vein is set to be christened The Quady Vein.
I love this idea. The market clearly loves this idea. Look at this morning. 30p by Friday.
We might even get 2 smelters if we have abnything left from our wages bill:
https://www.amazon.co.uk/VEVOR-Electric-Graphite-Crucible-Processing/dp/B09Q8H47XG/ref=sr_1_5?crid=37HYGO5ZVSGQA&keywords=smelter&qid=1667896041&sprefix=smelter%2Caps%2C82&sr=8-5
Onwards and downwards.... (downwards - into the gold and copper - get it?).
RK - Tesla was arguably the biggest bubble outside of crypto in the last couple of decades. Not remotely comparable with SolGold in any way. I certainly can't offer a rationale for how the market was valuing them but unfortunately I'm quite sure little old SolGold isn't going to be subject to anything like the same run, even with a positive strategic review outcome.
As Addicknt has pointed out these deals do come at a price albeit in a different form to equity dilution. As shareholders we will ultimately have to pay. It just seems certain posters aren't willing to acknowledge that.
Add - take your point. It did become a necessary evil unfortunately given the hole the company dug itself during the summer. I don't think I saw your posts on enterprise value but I likely would have agreed with them
Look at those big deals after hours...18.70 paid this am...
Bozi, I've mentioned the Enterprise Value thing on a few occasions, but it seemed few people were interested.
These royalty deals are all well and good but they come with a price. Having said that, as far as this latest deal is concerned, I'm not that fussed. We needed the cash badly and its source didn't really concern me - particularly as I believe it's only for the short term.
Net asset values...tablet all over the place this am...time to get up...
Copper....if you're going away again for a while, heres what you'll miss...
CGP SOLG stake sale at a premium to today's price
Porvenir update
Alpala Addendum
SP 35p by Xmas
Since when did not assert values have a direct effect on SP valuation...?
Explain Teslas valuation when they were only selling 50,000 cars...
Boliden, Fort?
They've been on a site visit and that's it. How can you use them to endorse the SolGold investment case?
Similar with Mitsui.
You've been pushing these names for weeks but neither have yet made an investment into the company.
You also fail to appreciate that this latest royalty deal isn't with FNV, Wheaton, Boliden or any of the other major royalty companies. It's with Osisko, decent enough in their own right but very much tier 2. A deal no doubt brokered by CGP and Maxit Capital, probably stepping into the breach to avoid their new investments in SolGold going down the swannee.
Oh, and you can bet your bottom dollar that somewhere in the region of $75-100m will be wiped off any proposed offer. That's how it works Fort, all debts are subtracted from asset values when it comes to determining a company's worth, which is so you can be sure we'll pay for it one way or another.
"All this "a sale is imminent" mullarkey has ceased thankfully. That rubbish has been going on for two years, mine construction will happen within 2 years and everyone will be praising Nick, DC and the team. The share price will be around the 75p mark, and all those that wanted (but didn't get) a quick sale will be well gone"
All that AND a 41lb halibut! Happy days indeed mate!