The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
SP going the wrong way for holders, the market wants it down...
My God...look at all the autobots again...55/60 most recent trades...
Thanks Fort for your reply
You right about nest feathering
It would seem we are paying I high price for them based on that although it's probably our best bet
Agreed...and surely they would need a "We have received an approach that may lead to a bid..." RNS.
My assumprion is that any battle if it happens will be fought out between possibly org(s) that approach and some that don't...
Unless theres a knockout bid to start with that is higher than any other prospective bidder would contemplate...
Bm3121uk
That was an unnecessarily long and unhelpful response.
I now have no contacts within the company except Fawzi.
My reference was simply that he has lost that amount of money on paper sincew April.
Of course I myself haven't lost any money in cash until I sell and nor has he...
I will judge NM and any proposals on their merits when the appropriate time comes.
Red …. Judging by the fact that the merger was kept so well under wraps and even caught the market napping I’d say it’s unlikely anyone is talking at the moment….. a good thing in my view
I have no inside information...
I just join up the dots of the facts and form an opinion
You know what...?
Gold is down 3% in 24 hours of trading;
Copper is meandering around $3.40 ($7500/tonne)...
But the SP refuses to lie down...
Bm3121uk
Tell us again exactly which crime Nick Mather committed against your family?
Your view on him is rather extreme. It doesn't take into account that buying junior resource companies is all about finding needles in haystacks and unfortunately the vast majority of them will lead to poor returns. That isn't specific to Mather. That's the whole of market.
Your aim as an investor is to get in low and get out high. Its as simple as that. If you can't do it there's no point blaming anyone else but yourself. There have been numerous opportunities for good gains at SolGold and Nick's other interests. You've just got to be careful with the oilers that you're not holding a full position into a drill result on a wildcat exploration well. A duster will never end well.
It's going to be interesting to see what happens here over the coming months. We're one happy family now and we're marching on to the PFS and PEA at Porvenir. A little £500-700m NPV there would certainly be very nice for starters.
Rednight, your comments as usual indicate you have special access to information that the rest of us do not. Certainly you have continued through the viewing of your rose coloured glasses concerning Mather's ability to fairly and properly lead SOLG over the last decade or so when long term holders have seen their investments plummet to current levels. Remind you to do some additional research on how his other directorships/chairmanships and CEO positions through DGR are fairing. Most are selling at 90 odd percentage points down......a few down to 0.001 cents (Aus) levels to further example his abilities. Refer to above column "SOLG Directors Deals" if you want verification of my assertions. Suppose your reliable source within SOLG organization.....possibly Mather himself, helps with your supposition that Mather is the only possible king/ringmaster and savior of all the private investors. Your assertion that SOLG's share price would need to go up by 150% for Mather to recoup his losses. Maybe, but that assumes Mather has paid an average of what 17p X 1.5 = 25.5p for his shares. But in reality, Mather collected most of his 4+% of SOLG's current shares by giving himself options, bonus shares and shares bought on the market when he strategically allowed share value to collapse from 50p inception price to 2p and the highest he has paid is around the 25p was a small bundle a year or so ago. He was forced to resign from his US$600k CEO position of which he was owed @ $400k and then arranged for another $475k (total of US$875,000). He certainly lost big time when his allocated 50 odd million 40p and 60p options which they expired last year but believe he has a bucket full of the 36p (?) options which are still valid. Don't forget the $5 million loan allocated to him by the company to use to buy SOLG shares and/or options when the time suits him. After encouraging BHP to buy in, together with Newcrest, and then fighting with everyone it is no wonder that they all hate him and wanted him removed from his autocratic leadership positions. I acknowledge Cornerstone has recently accepted a merger deal.....but what were their options otherwise. And now we are in the position we now find ourselves in.....huge dilution, poor share price, none or little communication, late in everything promised and when something is released it mostly turns out to be inaccurate, incorrect, very costly to repair or repeat process and again more delays. What a brilliant leader he has turned out to be! Come the AGM he must be removed permanently from any directorship or leadership/management role. The timing for an actual takeover will never be poorer than now, other than for a very low offer.
Having seen what happened with Noront...
Any takeover of SOLG will value the business on what the successful bidder has to pay to get the whole ball of wax...
23c to 110c in a matter of weeks...
Furthermore, any major who wants a strategic foothold in Ecuador OR one that already has a footprint, would pay more than you think to get Cascabel (in advance of a structural deficit in the copper market and with at least a 55 year flow of copper, gold and silver...), Porvenir, the other mak=jor projects and even the lesser projects with the resource to srill and assay them properly in a mining jurisdiction which could come to rival or even eclipse Chile, Peru, Brazil, etc...
You care sharket that's why you keep bothering me...
Honestly...?
Nothing...why would a major be interested in 15% of ENSA with no control over direction and required to contribute to the costs to develop...makes no sense...
But by a similar token you want 100% of ENSA because of gthe nuisance factor of a minority holder, so...
I believe SOLG and ENSA are collectiveluy greater than the sum of the parts, but only when realised...and that is either when Cascabel is in full production or one of many potential suitors buy the lot...
Franco paid $100m becuase 85% controls the entire project, hence CGP's requirement to contribute their proportionate share...
No one cares, and no one thinks you have any clue about the direction of the share price, given you were on the sidelines for the big news of last week. Must have hurt Ray, calling it so wrong!
Time to get back in me thinks, I see this running back into the 20's
I think the general consensus is that any takeover of SOLG will value the business on ENSA and the rest of the business will likely go for next to nothing if a full bid made. They are trying to add value to porvenir and boost value of ENSA through Tandy add ons but it's not going to be mega millions. They might add in £300m or so. Not bad.
Here's a question for you redknight. If you were a super major or a player like Mitsui - what would you pay for a 15% stake in ENSA (based on mid case PFS2)?
Franco paid $100m for a 1% royalty and that was based on 85%.
Morning Red
One could argue that Nick hasn’t lost anything yet.
You cannot be serious Colonel...
If that is true, why hasn't the SOLG SP gone up by 150% (the amlount necessary to recoup Nick's losses....?
And do you mean by sale of ENSA or development of Cascabel...?
If the latter he'll have to wait 10 years to start to get a return with massive dilution in the meantime to fund the project, even if its through part Convertibles...
Mark my words...the only think that makes sens of him supporting this deal is if it stimulates a takeover battle...
Simples...
"4 His, DGR and Tenstar holdings are being diluted by 18% by the merger..." END
Yes, but the value of his holdings will go up as SOLG will be getting 100% pay cheque for ENSA rather than 85% pay cheque.
There's dilution.... and then there's accretive value.
I would wager that the extra 15% ENSA is worth more than the dilution in SOLG ownership.
Willem Middelkoop is the guy to follow, as well Irwin, (although not his personal Twitter feed as its full of Ukraine stuff), because his Commodity Discovery Fund (basically him) owns a significant stake in CGP and he is trumpeting/supporting the deal on Twitter...
https://twitter.com/CommodityFund
https://en.cdfund.com/
"In June, 2021 the various parties ended a standoff over the direction of the project that saw SolGold’s then-CEO leave but an agreement reached to jointly advance the project."
Not quitew correct...
It stands to reason medar...
1 At Noosa he said Solgold had been acquired to be sold
2 Neither he nore DGR have complained or even commented on the price collapse in SOLG, despiet losing £10s of millions on paper...
3 He must be supporting the merger otherwise with NM/DGR/Tenstar/BHP/NCM it wouldn't stand a chance of goiung through
4 His, DGR and Tenstar holdings are being diluted by 18% by the merger...
Now who would allow all that to go through if they didn't know something none of us know...?
Stands to reason...
PLUS...if nothing else happened he would lose his seat on the Board at the AGM...
RK,
why do u think NM is happy with the merger? cant this be the only alternative available to stop BHP nuisance? or as you said does he know something big coming?
After four attempts, Brisbane-based but UK-listed SolGold has finally been able to consolidate control of the huge Cascabel copper-gold prospect in Ecuador.
But in doing so, could this mean control of SolGold and the huge potential mine could finally be grabbed by an Australian major?
The question arises after news on Friday that SolGold had finally got Canada’s Cornerstone Capital Resources – which owns 15% of Cascabel to SolGold’s 85% – to agree to an all-paper takeover offer.
BHP has a 13.6% stake in SolGold and Newcrest has 13.5% – that’s before the all-scrip offer which will dilute those holdings.
But with ownership of the huge project about to be sorted out once and for all, the two Australian companies are poised to grab control if they want – BHP more so than Newcrest, which is still digesting its Pretium Resources takeover in Canada earlier this year at a cost of $2.8 billion.
Pretium and its key asset, the rich Brucejack gold mine, is key to Newcrest maintaining its annual production at or above 2 million ounces at as low a mining cost as possible. Brucejack is a higher-grade gold mine that others Newcrest owns and that makes it a low-cost operation.
BHP has made no secret of its ambitions for more copper – launching a rejected $8 billion or so bid for OZ Minerals in Australia and looking elsewhere – Cascabel would not be a contender until the next decade.
The friendly deal is SolGold’s 5th attempt since 2017 to take over the Ontario-based explorer and consolidate ownership of the highly prospective Cascabel prospect. The offer values Cornerstone at $US108 million (or around $A160 million).
SolGold is buying Cornerstone by offering 15 SolGold shares for every Cornerstone share. SolGold has the option to pay up to 20% (around $A32 million) of the consideration in cash.
Cornerstone’s shares skyrocketed on the news, climbing as much as 35% in Toronto to C$3.69 before easing to end Friday up 23.5%.
SolGold’s shares closed down 1.37% in London on Friday at 17.22p, but were 8% higher in Toronto on the news.
SolGold said the merger will consolidate ownership of the massive project along with a strong portfolio of other projects.
The miner also said it is undertaking a strategic review, which may include evaluating financing alternatives and a spinout of assets other than Cascabel.
“This merger transaction makes sense for both sets of shareholders. The merger allows our shareholders to maintain exposure to the world class Cascabel project and is a step towards maximising value,” Cornerstone CEO Brooke Macdonald said in the statement.
In June, 2021 the various parties ended a standoff over the direction of the project that saw SolGold’s then-CEO leave but an agreement reached to jointly advance the project.
In August of this year, the miner announced a round of management changes, which included newly appointed chief financial officer Ayten Saridas stepping down after only six weeks in the job, after
Does anyone have full access - probably has an updated target price.
https://*********************/research/hannam-partners/solgold-solgold-and-cornerstone-announce-merger-consolidating-100-ownership-of-cascabel/95_4341d0f2-1704-48bc-b0b9-a2c5b9aa07e5/ae6fdac1-3cbe-4632-abf6-30d07f8a526f