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Big move up for Mather's DGR.
https://www2.asx.com.au/markets/company/dgr
Last time DGR were near the 0.7 cent level was mid to end of June 2022. Which aligns with SOLG's sp move to test 35p. Aligns with Blackrock buying and Norges. So something was lined up around 3rd week of June as DGR and SOLG were both looking strong.
Fast forward a few months and DGR / CGP looking lively yet SOLG dragging its heels. Might be due to ARB trading but get the idea SOLG should be mid 20's in no time especially as initial market reaction on Friday was to nudge it toward 22p. After sellers of the cheaper stock (acquired at 13p/14p levels) exit, then it should get a motor on.
The CGP deal effectively stitches up BHP and NCM (although I think the latter are ready to exit at right price). So in theory, the best BHP can do is offer CGP an alternative. That in turn then triggers the likelihood of a bid for SOLG as a whole as 15% ENSA is not worth much to BHP without the other 85%.
Far safer for BHP just to wait it out and once SOLG have 100% ENSA (about 3 weeks time post CGP meeting) then make a dart for the business.
At the moment, BHP and NCM are on track to see their SOLG control and ownership drop to just above 10% and even further if SOLG issue the 6.7% CGP shares to Mitsui or another.
IMHO BHP might well offer SOLG shareholders a 'better deal' and throw that out there to scupper the CGP deal.
Exciting times ahead and SOLG firmly in driving seat. IN Mather we trust. I said he had a plan and he's not going to let his baby go on the cheap. Not going happen.
I doubt you were complaining when the price was inflated when BHP and NCM bought majority shareholdings/
The fact is the management have been grossly incompetent over the past 12 months, nothing to do with greedy majors.
They thought they had outsmarted 2 of their major shareholders but in the process have left the company extremely vulnerable due to lack of funding.
As for for BHP seething……..that’s hilarious….
All that’s happened is 2 cash strapped companies have formed a partnership to try and get a better deal in the future potentially , hardly seeething inspiring news.
rcgl, yes, that was it. Thanks for reminding me.
Exactly
They have a common cause. To maximise the value of their shareholdings ( and ours by default) and not have it destroyed by self serving, greedy majors
Irwin made some interesting comments on Twitter over the last 48hrs.... looks like Cornerstone, Nick and SOLG are all aligned to block any destabilising tactics this year with realising value a common principle. We could do with a RNS for the DFS like we had for the PFS, that states when it will be delivered to the markets as that will be the start of a strong run for the SP. Not long now, the foundations are laid. C
https://twitter.com/bigdude6669/status/1578261273367961601?t=b_eCceBU7MC2WP0rNJsKBw&s=19
https://twitter.com/bigdude6669/status/1578505269088509952?t=TnF5ulUxNDR4LapcPR9D-A&s=19
Morning RC
I’m fully expecting the same sort of thing again this time round. After the last few days I imagine BHP may well be seething.
Probably targeting our few remaining Solgold stalwarts . Each year there are fewer aligned with pi’s. It’s vital ( as far as I’m concerned) that Nick Mather retains his place on the board, along with the lines of James Clare, he will make sure we don’t bow to bullying.
Add are you thinking of Twigger's letter to shareholders where he explained why they wouldn't be putting the whole board up for re-election?
What's interesting looking back is not only that only a majority of directors had that view about directors elections, but also it seems to say only a majority of directors thought the company was undervalued. Wonder if that was deliberate?
"Factoring in the significant positive changes over the past year, I am pleased to confirm that the majority of my fellow Directors believe it is not in the interests of Shareholders for the entire Board to be put forward for re-election next month. Among the concerns expressed by my fellow Directors is that a further destabilisation of the Board will have an adverse impact on the CEO search process and also further undermine the significant value generated by the Company across SolGold's licence areas throughout the Ecuadorian sector of the Andean copper belt.
As your Chairman, I acknowledge the great support your Board has received from Shareholders both large and small over the last 12 months.
However, it has come to my attention in recent weeks that one of SolGold's significant shareholders, BHP Group Ltd., has been actively canvassing certain shareholders and members of the Board seeking to persuade the Board that each Director should stand for re-election at the upcoming AGM. For the reasons set out above, the majority of my fellow Directors believe that putting the entire Board up for re-election next month would further destabilise your Company, undermine the advanced process to secure a new CEO and otherwise is not in the interests of all Shareholders.
I strongly believe that it is in interests of all Shareholders for the Board to be comprised of directors with a cross-section of views and skills who can collaborate to ensure that the interests of all Shareholders, large and small, are represented and looked after at the Board level and not just the interests of certain large and vocal shareholders seeking undue influence at the expense of a control premium you should enjoy.
The intention of your Board is not to maintain its incumbency, but rather to ensure a re-rating of your Company is achieved without compromising corporate governance best practice. The majority of your Directors consider that the Company is undervalued and therefore vulnerable to opportunistic corporate activity, which is why stability in the Boardroom - given the significant amount of positive change over the past 12 months - is highly important and in the best interests of all Shareholders."
anyone recall which corporate event only received a majority of board votes in favour I.e it wasn't unanimous.
I remember being surprised at the time, but have forgotten what it was about.
*sides.
Anyway, let's see what next week brings. We've had an interesting few days. Hopefully we get some better behaviour from the wider market as BPhil indicates.
There's undoubtedly more to come.
Smickster - at no stage have I said SOLG has no legs. If I thought that I wouldn't be here myself.
I think it's important that everyone knows both signs off the coin. The good and the bad. Would you not agree?
Nobody should be buying shares on false pretences, and if we disregard the challenges and headwinds, then we're not investing effectively.
medar"If only cascabel is sold, and Solgold continues exploration, what will happen to the 600+ workforce? will they go all with the new company?the remaining firm cant justify 600+ persons?"
It's a pretty big community , I think it's near 900 now so it's an infrastructure that would benefit not only the potential buyers of Cascabel but the only requirements of the other interests in the area.
This is now a viable town with potentially a long future ahead, certainly not a shanty town scenario.
What's better for group of companies who need to facilitate their ongoing concerns than to have a functioning society for their workforce as well as enterprising folk who will stock and supply them without the need for their investment.
With hindsight, whether by luck or design, it's turning into an asset not a burden.
Can't be many board meetings between now and the end of the year Add?
Unless there's been a pact formed that is...
I think this bb is a small representation of the private investors.
Most people who frequest here are traders....that's my reading of the board.
Yes I can take it or leave it but I wouldn't want someone looking in thinking this share/company has no legs so I choose to challenge certain views when I can.
Ithere is risk here of course but one that could pay handsomely for us all if things align in our favour.
Haven't appointed myself to represent anyone Smickster.
Just have a read around you. Gauge the sentiment. The views similar to ours are the minority and there's a few reasons for that.
My opinions can be taken or left. Just know that's all it is. Nothing more.
One other thought. CGP have a strong animus towards NM...board meetings should be fun.
Bozi
My problem is you seem to have appointed yourself to represent the ageing, fatigued investor based on a few conversations with a few investors.
Let's say private investors make up 10-20% of the shareholders, could you see the benefit of Bhp wearing them down?
So my problem is that you are possibly jumping to conclusions about what people might be willing to accept.
That's not too say it doesn't go for 30,40 or 150p but I'm in until the end 1,2 or 10 years.
Bozi, thats absolutely fine. Nothing to apologise for. I didnt take it as a slight, just a fact.
I wonder if the merger has been prompted by a third party? Discussions were taking place and the bidder said they would only move forward if they could be assured of the 15% interest held by CGP and the only way that could be guaranteed was to do a deal first.
Btw Bozi, yup, I fit your description. I've been holding here a long time and want a return asap.
If only cascabel is sold, and Solgold continues exploration, what will happen to the 600+ workforce? will they go all with the new company?the remaining firm cant justify 600+ persons?
BPhil - interesting post with some good points.
You're spot on about us not being the major players, but at the same time, we're thinking about our individual investments, our exit points, etc. We're not thinking about Mather, Irwin etc although we do acknowledge them as major players and ultimately the controllers of the company's destiny.
On your second point, don't fully agree. The asset is of course important but so is the management. Some investors will look at management performance over the last couple of years and have doubts as to whether they will achieve value. There's little doubt of the quality of the asset, but as I was saying earlier, the barometer now for the management is the deal they deliver for shareholders going forwards. For example, I hope Warren and the CGP crew treat their SOLG shares with the same pride that they did their Cornerstone ones and extract as much as they can from an acquirer as they have from Darryl and the company.
I'm not sure I buy the cabs off the rank policy. I think it was wishful thinking from Darryl. I have reservations about how well a Cascabel sale would work for SOLGs SP... for example, say SOLG have 3bn shares in issue fully diluted after the merge and someone buys Cascabel for $1.5bn, that's about 40p. Factor in any tax take by the Ecuadorian govt and budgets for Porvenir and the regionals and I just don't think it would be the blue touch paper many would expect. Happy to be proven wrong though.
Sorry Jerry - didn't explain myself well there. I'm talking about short-termism in terms of outlook from this point onwards.
You make a great point. Many have been invested here for 5/7/10 years. A long time. Many of the folks invested long ago in their investing careers, and such is the nature of the SolGold beast that we're still sat here waiting for studies to complete and wondering what the future holds.
Certainly not accusing you of being short-termist on your investment.
A couple of points there .
Firstly the PIs are weary but let’s be honest ; we aren’t the major players when it comes to company strategy and decisions on the end game . We’re just here for the ride. “We” might settle for 50p .... I doubt the likes of Mather and Irwin will
Secondly, as you rightly point out, the boards performance has been questionable to say the least. But , apart from having a low SP (which imo can change very very quickly with funding , pfs , pea) that is largely irrelevant . It is about the assets . Nobody is buying the past performance of the board , they are buying the future performance of the mine.
Having said all that , I am of the opinion it is cascabel that will be sold soon and Solg will continue the cabs off the rank policy . That in itself will bring a price multiples of today’s SP
Relevant also is the macro economic situation - that isn’t favourable to us but is not something that will stop the likes of the majors looking 30 years into the future and acting now
All in all , I’m much more confident than at any time in the last year. This weeks news re the Japanese and the merger should not be underestimated . If I had funds I’d be adding ...!
Smickster - I've got to ask you, what is your problem?
I didn't say everyone was of the older generation. I didn't say everyone was fatigued. I said that was the general position, i.e. there are exceptions.
There's a small and sturdy band of us on here who I think, given the choice, would be happy to see SOLG continue on the path for true value for longer than say, the next 6-12 months. Of the frequent contributors, I'm talking me, you, Mathersfinger, Rcgl2, FTJNY and Quady. Everyone else I'm either not sure or I'm pretty certain they'd be in favour of a quick conclusion. Your Redknight1's, SeanHunter's, SharketMare, Jezzoo, probably Addicknt and potentially a few others like DBW, Bubble, Shipright, etc.
Now I'm not saying everyone who wants out is old or wrong to think like that, but if you've been listening to what people are saying and have been saying over time you will have realised that of the SOLG PI base, there's an aging demographic. Moreso there's fatigue and that comes from what people perceive to be slower than ideal progress.
I'm not trying to offend anyone. I say it how I see it. I don't have any stats but I've spoken to enough shareholders both privately and within a group setting to have a fairly good feel on the make of of our collective.
Bozi, you have certainly defined me well. I would be delighted with 50p atm. I have been invested in Solgold for 4-5 years which is an eternity for me, and certainly not what I would call short termism, but its all relative.
Its still a great asset and they are still useless management. I cant say that I have enjoyed being a shareholder in this company. Maybe I should have sold when I first met NM. Anyhow we appear to be in the final furlong and I will glad when this donkey gets over the finishing line.
Bozi, you do have a terrible habit of having a negative slant on things though, don't you?
I'm all for reading views on potential pitfalls of solg bit in the last 8 years I've followed this board we have had a large number of posters who seem to post constant doom.
Tbf your posts are a bit more subtle than your impending doom that some others have been guilty of.