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Well I certainly dispute it.
Far too much emphasis on the current share price - that can double in a week from these levels no problem. Sort some funding out, get the PFS and PEA out and we’re in the 30s and 40s . Then this talk of 50 to 70 looks silly.
As always, it depends on multiple bids/interest. But who doesn’t believe that is the case ?
No , I believe a quid and over is well within our reach.
Japanese need copper gold and silver as they expand and cut off supplies from China
Don't dispute any of that Sean.
Sean
I think if all goes well you may well be in the right ball park.
The world is in a bit of a mess but your expectations don’t seem unreasonable.
Lots of i’s to dot and t’s to cross to get there though……….good luck
Colonel, can I just correct a few things in your 1212 post.
They are pre-emption rights not presumption rights.
Its Mitsui not Matsui.
Henry is CEO of BHP. Bristow is CEO of Barrick.
Good afternoon Zoros BHP would never buy CGP as it's a fragmented strategy.
The drop in the SP yesterday makes me shake my head in amazement. One shoe has dropped and all we have to do is to wait for the other. Yes, it was costly, but the way ahead is now clear. BHP is no longer the only way forward.
In my opinion, the only question is whether our BOD (and advisors) can seize the opportunity.
Fair enough Bozi, I'll take your word for that and won't mention it again - and I apologise.
But my basic retort to all the negative things you are saying is - yes, you may be right, but we have paid the price. From the PFS release to now, we have gone from 37p to 17p. We've been punished. All the negatives are factored in. The casual buyer is not interested right now. major news allowed all the recent bargain hunters to escape with a 20% profit.
Yes, we are still in a hole. But we are in a much better position after this week to climb out of it. the Japanese interest - big news in itself - was completely drowned out by the merger news.
The days of hoping for a £1.36 or a £1 bid are behind us. LTHs need to get used to that. 50p is no longer lowball. It took us 5 years to get into this mess and we have only ourseves to blame. But there is still a huge upside to where we are. If we were just sitting at 30p I doubt you would be so concerned with the things that suddenly look life threatening at 17p.
I don't see a quick recovery, but I do see a 40p - 50p exit sometime fairly soon. Anything above that is gravy.
Sean, let me tell you for the last time you are completely wrong.
I haven't sold anything. I've been a continuous holder of SolGold shares since 2013.
I just don't subscribe to the whole notion that everything I say about SolGold has to be Uber positive all of the time.
It's no more complicated than that.
Absolutely Addicknt - I'm not saying more money won't be raised. In fact, I'm confident they'll do even better than what our minimum expectations might be.
I'm just saying how I think the market is viewing it. For want of a better analogy, I think yesterday's news was the keyhole surgery yet the market is still consumed with where it makes the incision. As such, I think a resolution on the funding now sees a much more positive reaction that would be expected.
It could be the solution that Lunch Money has flagged from DJ Crisp.
Also remember, that the AGM is fast approaching and could be as early as end of November. At this AGM, SOLG will IMHO be putting new resolutions to the vote. One of which could be to issue shares without the same presumption rights as before etc etc. In simple terms, the shareholder base changes dramatically once the CGP deal is done. NCM and BHP drop down to just over 10% each. SOLG friendlies (inc CGP) increase to nearly 45%+. That's almost a shoe-in for all resolutions assuming shareholders understand the reasoning behind them.
Suddenly the handcuffs are off and SOLG are no longer backed into a corner or being bullied by their super major shareholder.
SOLG pretty much secured all BoD's future by bagging the bulk of the votes.
Valuestone, Matsui, Boliden... loads sniffing around with interest. Darryl told you months ago... funding is not a problem. We have plenty of options. Looks to me that BHP's attempt to play hard ball may have just cost them a lot more. That will teach them. Losing to Wyloo no doubt still smarting. Lose solg to someone else and BHP shareholders are going to think Bristow is looking a bit old and tired for the future of BHP. Biswas also looking weak after getting a wyloo shoeing on GGP.
Love it.
Bozi all the negative points you keep hammering away at are valid. That's why we are currently at 17p and not 37p like we were a few short weeks ago.
I'm pretty convinced you sold up recently hoping to get back in lower, but even taking you at face value, it's worth reminding you that all the current problems can be fixed and s has been pointed out CGP and the likes of Irwin would not have been up for a merger had we looked (behind the scenes) like we are going to crash and burn with no funding in a few weeks.
The only way is up from here.
This isn't the "market value" today by any means, we are just sitting in the sin bin for the dire performance of our board.
Bozi, I understand your position but would mention one thing: CGP are fully aware of the funding need and I'm pretty sure they wouldn't be doing this if they felt the money couldn't be raised. Either that or they know a corporate deal is already being worked on.
I'm equally sure that if they do the deal and things get bad, they'll be on the receiving end of legal action from their shareholders for gross negligence. Remember, when doing a corporate deal there is an all embracing disclosure process, so they'll have access to whatever information they ask for. This gives me comfort.
As I've said Tesla1 - there is a new narrative. "SOLG is now at market value".
You keep beating that drum mate.
Addicknt - IMO it's because the strategic review is happening from a position of short term weakness and the concerns over cash won't go away.
We're sort of putting the CGP merger on the credit card right now and in these market conditions that will not be well received.
It's completely different from being well cashed up, pushing out a robust PFS and announcing a strategic review immediately. In that situation the reaction would be completely different.
Those who ridiculed me when we opened at 21p yesterday won't be so chipper if there's any wobble early next week.
The immediate white noise is still irrelevant. We know we need cash in the coming weeks but providing that is secured we move forward with a consolidated Cascabel. That will open up the options you're thinking of but the market isn't looking further than the end or it's nose right now, and it's all being exacerbated by PIs trading it ferociously,adding to the volatility.
Sean
Uncertainty and hesitancy is the market value.
The figures bandied on here by certain posters are pie in the sky valuations that are nowhere near reality, maybe if the mine was in Canada, Australia etc but it isn’t.
BHP have bided their time because they can, the market has come to them if they want the company.
SOLG’s options since they were 37p have massively reduced, their fundraising options are severely limited now. The sp at 37p was heavily influenced by bid speculation and if you believe these boards still is.
IMV BHP hold all the cards, some posters just don’t want to, or can’t afford to, believe that.
There are posters on here who won’t sell for less than a £1, that’s cloud cuckoo land in todays environment.
First of all Solg need some cash, until that’s resolved the sp isn’t going anywhere north fast.
I do find out a little odd that BHP didn’t buy CGP though?
Z
Gino - well if one is to accept certain views on here, we will be going to production in some shape or form ergo funding will be in place and cgp will then be expected to cough up- no?
Z
Z - for CGP to renege on it's share of production costs, SOLG would have had to commence the development of Cascabel, presumably having arranged the finance to do so.
How do you see that having happened?
So Solg has:
Issued 500,000 shares to secure the deal.
Brought under its umbrella the CGP portion ($400m) off production costs.
Merged with a company that has only $4m in the bank.
Merged with a company that saw NCM leave them in January of this year at one of their operations.
Merged with a company that has had its Magdalena license revoked by the Ecuadorean government earlier this summer.
Diluted its BOD by 20% by adding 2 x CGP directors.
All because ENSA can be viewed as a “whole” rather than a fractional entity. (Remember- if CGP reneged on the production costs, we could have bought their rights to ENSA for a paltry $3.5 million anyway!).
Now I understand why so many Solg staff have left the building.
CGP must be in hysterics s they cash in their 35% rise in their investments yesterday!
DC needs to have a plan for this to have taken place, especially as they only have a 3 month financial runway remaining before they get sold off at auction!
I can suspect that previous funding attempts were thwarted by responses akin to: Get your **** in one sock Solg before We commit.
Z
Please... keep it to the point...
https://www.scribbr.com/academic-essay/length
some comments here are longer than solg site explorations ....
Good post redknight1, and may I ay, sounding like your old self.
That's how I see yesterday too - a bit of over excitement from a few (particularly over on AVDN) who thought it'd be an instant jump to 28p, then a lot of selling at 21p, then a lot - an awful lot - of ATs yesterday steadily walking the price down.
But some big buyers in there getting bargains.
I note too - on this board and ADVN - that posters have crawled out of the woodwork to explain to us that we are now at "market value".
This merger is a huge development. As things start to move, expect some foul balls and dirty tricks, misinformation and manipulation - particularly in the form of SOLG "experts" who have never bothered to comment before.
There is a narrative being built - "SOLG is now at market value even with a sale of Cascabel so you might as well sell up now and go away".
You heard it here first.
schlemiel, spot on - I believe that is the route from here, and it is the only route that will reward us smaller shareholders without waiting for decades.
I expect no more talk about "going into production" - I've been calling out that nonsense for months.
I have next to zero faith in the BoD but they have 3 simple tasks ahead of them:
Merge quickly and painlessly
Raise a little bit of cash to survive for a few months
Sell Cascabel to the highest bidder
If we can jump through these hoops the poor bloody infantry will at last get some reward and the chance to continue our investing journey with SOLG as it further explores our Ecuador concessions.
This isn't the end, but hopefully the first big sale of our journey with many more to come.
We should have been here 4 years ago, but that's water under the bridge.
GLA
Some interesting thoughts, thanks everyone.
One comment: we have been very focussed on BHP as being the most likely bidder (me especially, and I still think they are), but what we must remember is that the review process will involve Citi having discussions with a wide range of interested parties - in fact they wouldn't be doing their job properly unless they cover every base.
When you get locked into a process like this and if a decent number of interested parties emerge as buyers, it's sometimes easy to put other options on the back-burner, particularly if you know the other options involve doing something that will probably upset some shareholders...such as another fund raise (by the way, I consider another streaming deal as being a non-starter)
It's also time consuming and tricky to attempt several different things at once; in other words, running a disposal campaign is difficult to sell to potential backers of a fund raise if they think "what's the point of us getting excited about putting money in if ultimately you're going to flog the company?" The same is true in reverse i.e talking to buyers if you're intent on raising new money. The mixed message can be difficult to sell.
So I come back to my view that a smallish fund raise will happen whilst simultaneously Citi go flat out to find a buyer...and bear in mind, their fee will be a lot bigger if they flog the company rather than raising money.
Anyway, at least we've now got something concrete to discuss!
Tesla1
MCAP is currently £393million.
For what we've got that is undervalued as Cascabel is worth way more than that alone
The price the market is putting on the individual share price reflects our current situation re. funding and other issues - and the current price is STILL based on relatively low volume and a lot of automated trades.
Don't confuse uncertainty and hesitancy as "market value" in the absence of true, large buyers making a move.
When the share price was 37p just a few weeks ago - was that market value?
If so, it shows you that "market value" is a meaningless concept going forward - it is merey a snapshot of the sentiment of today.