Roundtable Discussion; The Future of Mineral Sands. Watch the video 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.
LM, "going concern" is an accounting term and is not in the same category as the others you mention.
In theory, to get a clean Going Concern statement from the accountants a company has to prove that it's predictions for the next 12 months are viable and that it will have sufficient cash to cover all obligations as they fall due. The discussion that takes place between management and the auditors around this issue are exhaustive and subject to a great deal of scrutiny.(once upon a time you could pull the wool over their eyes and they'd accept whatever you told them. Life has moved on since then)
The above explains my comments today. We do not have sufficient resources for the next 12 months, but very clearly the board has managed to persuade PWC that we will find them. Given that we only have three months of cash left, our argument must have been very compelling and PWC have gone along with it subject to the heavy caveating in the statement.
For one thing, the current share price of a company has limited correlation with the economics of a streaming or royalty deal. Being structured products that come in all kinds of styles and relate mostly to the future delivery form a mining company or one that requires the initial development like SOLG, they are more about the project, the resource, the location and related geo-politics, the management team and its ability to deliver.
At least that is my understanding, don't shoot me.
Where your buys red, no point in bragging without backing it up?
You know the saddest thing in all this is that plenty of people on here would probably sell their shares if BHP offered 30p right now...
There was NO BAD NEWS in that Annual Report!
Everybody already knew that we had enough cash to last until the end of December and that a solution would have ot be found...
But that didn't stop people buying in the 20s, so why sell now...?!
Oh and BTW novice you are a breath of fresh air mate with your continuing good cheer...
Have a look around you Redknight.
Do you think Boliden or Jiangxi would offer funds on the same terms as FNV in this market given Putin's continued aggression, the poor performance of multiple economies, etc?
To suggest they would is pure fantasy as far as I'm concerned.
I'm not Redknight. It's my opinion.
Tell me why a stream would be available on the same terms as the one struck with FNV?
Thanks
Fort - it would do no such thing.
The business' treasury position and funding outlook dictates that any strategic review is in fact dressed up as a fire sale.
Ask yourself why were fighting to hold a £300m valuation with Cascabel, Porvenir and a promising portfolio? Be honest. The market wants none of it until we fill the coffers.
Cazzubbo and the others have a lot to answer for here. Even in Padmaster's best case scenario any sale price would leave plenty offside.
Unfortunately, BHP could easily curry favour with Lasso and his government by firing them half a billion dollars for the Cascabel licences. You have to consider the dynamics of helping fund SOLG vs potential to acquire the asset by not doing the same.
It's very much up in the air right now and I'm not confident the coin will land on our side.
You make a very sound point Colonel.
Either "the Board has received an approach which may lead to a bid..." or
"The Board has decided to conduct a strategic review to consider all strategic options, including the possible sale of Cascabel or the company itself..."
Would have the share price screaming higher...
Anyone who is out or short of SOLG shares should be seriously fearful of such an eventuality...
FOMO drives markets...
BTW my trade is showing over there novice :)
It's OK little novice, you can call me Massive ;)
There you go again with stating opinion as fact Bozi.
"For example, even a small £30m stream is going to cost us 0.5%...."
£30m is now $33m because of the fall in the pound.
The previous FNV deal was $100m for 1% with the option of a further $50m for 0.5%
Why would the terms be any worse...?
I have no doubt that Boliden and Jiangxi would be prepared to offer a deal as well...but thats an opinion.
$50m would last us to mid 2023..
But I don't see this going beyond the AGM without significant external 'corporate action'...
And thats an opinion as well...
Getting close to 30 green lines here today someone clearly in need of soooo much attention diddums ;(((me me me look look look Lolzzz
Where's all this talk of 'bust' coming from?? Utter nonsense. If SOLG announced a strategic review with intention to sell assets or asset or entire offer for company blah blah blah... then it would be soaring higher.
SOLG can hoist the forsale sign whenever they like. Will it garner a great price? Well that depends on who's interested and how bad they want it. They could avoid sale of business and instead do a alliance deal with solaris / Lundin and Chinese.
Loads of options. Going into admin aint one of them. Anyone that thinks that's a possibility has not got a clue.
Any day now we could get that red dot we’re waiting for.
Either funding,
Or likelier - a bid to buy us out
GLA
Putting my m oney where my mouth is...
Bought another 206440 at c13.79...
Redknight - i think you need to be VERY careful. You don't want people thinking negative thoughts aloud...why? Because it will stop people buying the stock?
Lets not get drawn into all that.
It's about time management know why shareholders and non-shareholders alike think. Between us we all make the market. This management has got off too long having their egos massaged because of the quality of the asset. They've exhausted their credit in the bank.
I would agree with you that in a normal environment funding options are available. However, this is no ordinary market. Some options are so bad that you wouldn't consider them (talking convertibles from loan sharks here). Even the better options are going to look poor here. For example, even a small £30m stream is going to cost us 0.5%.
There's a real rabbit that is going to need pulling in the next 6-8 weeks but the SP will crater day by day regardless of what you or I say here. It might not be a Sirius in terms of the project financing obstacles but it's comparable in other ways. The good ship SOLG is running aground if we don't chsnge course in the next 2 weeks.
Fair enough medi...its RK by the way...
Possibly the worst trait of British people is to look for somebpdy else to blame when things go wrong, instead of taking responsibility for their own actions.
Right now I am down about 65% of the money I had previously made in Solgold, but I am responsible for my own decisions, including averaging down to just over 20p and holding so many shares between my wife and myself.
The only logical conclusion with the AGM fast aproaching is that there will be a takeover war.
With people panicking it wouldn't surprise me in the least if this share fall was being fed by one or more possible predators.
Looked at rationally, what we have here is capitulation.
As I said the other day, it is dangerous to try and catch a falling knife and even at this bargain basement price you'd have to be brave or patient to wade in.
Meanwhile the MMs are having a field day. They make their money by selling shares they don't own and buying them back cheaper, including hitting stop losses..
It would not be surprising now if people concluded that Darryl joined in order to trash the share price, making it cheaper for BHP to buy Solgold.
But I guarantee you there would be at leats one counterbidder, if not more.
Nick, DGR and CGP do not seem to be panicking, so maybe they know something we don't...?
What a complete load of BS, you have no idea whether they have access to funding and if so whether that funding is viable.
Of course they can go into administration, the lower the sp goes the more likely that could happen.
Check mate novice ??¿??
Not a bad day for a further little dabble, very nice thank you....
Only one way this is going from here ;))
We've been here before
Indigenous tribes anti mining vote 10p
Covid 12p
Russia Ukr ware probably 10p
But we have always recovered strongly knowing what we have in the ground and currently formulating a plan to extract it
ONWARDS & UPWARDS !!!
Oh dear someone is a little bit tetchy today, chickens coming home to roost at gamblers anonymous…..
You are a disgrace to this board, the only reason you post your alleged trades is to encourage others to follow in your silly footsteps.
Solg are in a pickle and it’s blinkered rampers like you that only have yourself to blame, moaning at other posters over spilt milk……
Solg have a serious cash flow issue and nothing you post can change that fact, allied to the shocking market situation the world finds itself in anyone chasing the sp lower like you have been doing needs their head testing……
The Board and Daryl have made a lot of changes with the result that we hve had massive value destruction since his appointment.
Ingo must be crying into his beer...
Try these for starters...
"Other key management personnel consist of the aggregated remuneration of (inter alia)... Ayten Saridas (Chief Financial Officer, appointed May 2022, resigned July 2022), Benn Whistler (Technical Services Manager-resigned), Chris Connell (Regional Exploration Manager, resigned February 2022), Peter Holmes (Director of Studies-resigned), Ingo Hofmaier (Interim Chief Financial Officer to May 2022, Executive General Manager Projects and Corporate Finance-resigned) ..... Geoff Woodcroft ( Chief Human Resources Officer, resigned 29 October 2021)....Karl Schlobohm (Company Secretary, retired in June 2021), Priy Jayasuriya (Chief Financial Officer, resigned in November 2020)....Nadine Dennison (Chief Human Resources Officer, resigned in March 2021)....Steve Belohlawek (General Manager Underground Development and Mining, resigned in October 2020) and Eduardo Valenzuela (Executive General Manager of Studies, deceased).
Ouch!
RD, I have a lot of shares. So i hope im very stupid as long as this is a good outcome (SP wise) for all holders. Thanks for being polite.
And the doubters can have a wee look at that trade yet to arrive on that board