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The battle is about to begin for solgold. Hold on ladies and gentlemen
https://www.afr.com/street-talk/fork-in-the-road-looms-for-bhp-newcrest-s-copper-play-solgold-20220814-p5b9oo
“…. some analysts suspect, then we could see a pair of Australian heavyweights in a ding-dong battle.”
Neil Hume on Twitter (he posted the Refinitiv confirmations of the fundraising fail last week...)
"This looks like a company in crisis - SolGold
CFO has resigned, head of exploration is off and its independent non exec has stepped down. What a mess."
And this is what he posted on July 28...
https://twitter.com/humenm/status/1552546766494523392/photo/1
https://www.miningnews.net/leadership/news/1437608/more-signs-of-unrest-at-solgold
I agree SM but NM implied in the past that he wouldn't sell for less than £2...DGR can't pay that...
So here's the thing...
At 31 December 2021 CGP had Net Working Capital of CDN$7 million...
Their annual operations cashflow was negative $6,6m...
They 'kept the lights on with a $5.6m fundraise...
By now they should be down to less than $3 million, and...
They don't want to sell SOLG shares as they have done in the past...
And...their SP just hit a 27 month low...
At AUS$0.50 DGR is at a 29 month low and if you leave out the short blip in March 2020 to 0.40, its at an all time low...
At 31 December 2021 DGR had AUS$2.5 million net working capital and...
Their net cashflow FOR THE HALF YEAR from Operating (-$2m) and investing (-$2.1m) totalled negative $4.1m
And they 'kept the lights on with $4.7m financing. They also don't want to sell SOLG shares...
Their net cash position might now be almost zero...
So it seems to me that neither has the cash to participate in either a cashbox or a rights issue, so NM might be angling for a further streaming deal. That won't happen...
So why is Irwin so quiet and Mather so relaxed?
Simples...their MUST be something going on in the background...
As always I'm happy for someone clever than me to challenge my workings...
A question to those of you more clued up than myself on corporate governance.
If we assume Nick Mather is going to be ousted as a director at the next AGM, is there anything within the rulebook to stop him from either selling ~2% of his personal holding to DGR, or instructing DGR to purchase more stock to move them above the 10% threshold. At which point (I think) DGR would be entitled to a seat on the board, and could put forward Mather to be their representative. Aside from the obvious governance concerns and p*ssing off BHP and NCM, is there anything wrong with this?
DGR has been selling its position down in ALL recently. There was an excellent post on the ALL board summarising their situation by DGRInvestor1 the other day, speculating that they are moving into oil & gas and away from EV metals. But I'm more interested in DGR's intentions here, as if their stated strategy is executed correctly, the payout from SOLG could be enormous (I.e. sale to a major at a significant premium).
Maybe I am reading between lines that don't exist, but I get the impression that Nick puts SOLG on a pedestal above some of his/DGR's other investments. He isn't going to go down without a fight.
Orthern you cannot do that.
Sorry for the duplicate post guys..just checking in since Friday pm...
Meanwhile I'm loving this post by our resident key influencer DBW...
"help the aged with learning difficulties??"
Announce an invite to every global, mining major, of our intentions to enter in to a JV of the whole Cascabel site with the most competitive, attractive offer.. This would clearly have the backing of the Ecuador government to get he process expedited… ensure BHP would have to compete fairly, rocket the share price to somewhere near where it should be.. and get the bloody thing moving… stop all the cloak and dagger crap..
SolGold boss Darryl Cuzzubbo says the in-demand copper hopeful has enough cash to get through at least the end of the year, playing down the impact of a stalled capital raising effort on the company’s future.
Shares in London-listed SolGold dipped sharply last week amid rumours some of the company’s shareholders had baulked at proposed capital raising, aimed at funding the next round of work at SolGold’s copper project in Ecuador.
Speaking on the sidelines of Kalgoorlie’s annual Diggers and Dealers conference on Wednesday, Mr Cuzzubbo confirmed the company had “tested the market” on a raising, but had not gone ahead amid tension between shareholder groups over the structure.
SolGold has had somewhat a fractious relationship with its two biggest shareholders – BHP & Newcrest Mining, who each control about 13.5 per cent of the company – for much of the last two years after a falling out over the debt-focused funding strategy of former boss Nicholas Mather.
Mr Mather also remains a major shareholder, partly through DGR Global, and the company also has a number of activist funds on its register.
“BHP and Newcrest have a view on how we should be raising capital funding. Other shareholders have a different view on that. And we need to work through what’s best for all typical shareholders. But we have time,” Mr Cuzzubbo said.
Mr Cuzzubbo said SolGold had about $26m in the bank, enough to get the company through until the end of the year, but acknowledged the company would prefer to head to the market sooner rather than later.
SolGold is chasing big copper and gold targets in Ecuador and has been the subject of ongoing takeover speculation after both BHP and Newcrest took substantial equity positions in the company a few years ago.
Mr Cuzzubbo said that, despite the ongoing speculation about potential bids, his focus remained on the development of the company’s Cascabel tenement group.
“I’m not worried about getting funding through the definitive feasibility study. I’ve had multiple calls with investors. I’m not worried about it. And DFS, by the way, and the bankable feasibility study, that then opens up offtake options and funding related to that as well. So you get to that point, it opens up other options,” he said.
“When you talk to people they always ask him about the acquisition angle. But our primary focus is to optimise Cascabel and derisk it. That’s how you build value.”
Sorry Damers too many inconsistencies, If a deal was being struck, then Why the announcement on funding, also why the continuous spend and the announcement that we are funded for the rest of the year.
Interesting scenario but a stretch too far.
Think that's fair SharketMare
Quite a reach there Damers.
Not impossible by any stretch but also not the way you'd treat a CFO with a track record for litigation.
How does this story pivot if we get to the first market day of 2023 without a proposal?
Good article Dave thanks for sharing.
“Macdonald expects Cornerstone Capital Resources to be bought out within the next 12 months.” Article dated 10th August 2022
Morning Damers, I can't say I share the same view, and unfortunately think you're giving the company too much credit.
Cuzzubbo stated in a piece posted on here yesterday that offtake deals were possible post DFS and BFS.
If what you've written below is true, we can expect to see BHP and NCM vote to oust DC at the AGM.
I suspect he's trying to do the impossible and balance the interests of BHP/NCM and Mather.
Something has to give at some point to allow SOLG to move forward with a clearly defined corporate strategy, including how the business raises funds.
The current situation is untenable and renders DC relatively powerless. His must be one of the toughest jobs in mining at the moment.
Lots of interesting posts over the last few days following Cuzzubbos Diggers & Dealers statement.
My take on the subject is as follows:
I do not get the comments from various folk, exclaiming Cuzzobbo has failed the Co. thus far. What is not taken into account is that decisions are made by the collective.
In this case Twigger / Mather & Cuzzubbo hatched a plan, just amongst themselves.
Shortly after Cuzzubbo started Ingo was instructed to find a major streaming deal. I suggest this would have been for maybe £200m + (a large enough deal for majors to really take note).
He did so with Noront and Ayten was brought in to agree the final details.
Now Twigger / Mather & Cuzzubbo were fully aware that this deal would never finalise (bare with me please!).
SOLG announced to major share holders that the deal was going through - at this point the trap had been set. BP / Newcrest went bonkers - they would not stand for any further dilution of the asset.
So, Cuzzubbo approaches the Majors and says: 'look, I will withdraw the deal with Noront but only if we receive an offer (within a stipulated time pre-crimbo).
They agreed. It is at this point that Ingo and Ayten hit the roof - they were merely pawns in the Twigger / Mather / Cuzzubbo plan.
We know the rest with folk leaving the business etc.
Have a good Sunday.
Damers.
Fortissimo
I have been a continuous shareholder in SolGold since 2013.
So your "it's easy to see who is in and who is out" is nothing but pathetic paranoia.
The reality of the situation here is that some shareholders appreciate the brevity of the current situation and out of honesty and integrity with share those views with other forum members. It's not about trying to influence. I couldn't care if people bought or sold shares. I'm not here to knowingly engineer a herd in order to boost the share price and the value of my investment. I'll say what I feel needs to be said and unfortunately, at times like the now, this isn't met well by those who think the coin only has one side.
Its a "FREE TO JOIN, ANNONYMOUS" Bb and people can basically post whatever (within decency rules) they want. It is then up to all other members to read and laugh, agree, ignore, filter or report if they feel that some rules have been overstepped. Too many keyboard egos here who wouldn't say 90% of the stuff they post if face to face.
Other than that I still feel all the nonsense posted here some very good some extremely bad is irrelevant to where this stock ends up, which IMHO will be way north of here...
Unfortunately this LSE site is mostly twitter for shares with minimal filters. Just read and enjoy I say
ONWARDS & UPWARDS
Fair enough. I guess what you see as trashing the company I see a healthy discussion of the situation the company finds itself in. I don't believe that Bozi and Sean post based on their positions, I think that they (like me) simply don't share your unbridled optimism.
Enjoy your Sunday.
SharketMare, I have no problem with people trading their shares. My problem is that they seem to think 'trashing the company' is a good idea to support their trading positions. Just read twiggers paragraph below and think long and hard on whether you are supporting your fellow shareholders or doing them more harm with your trade inspired short term gains??
There's nothing 'core' about your view on SOLG.
By all means trade away on a daily basis, sell out, buy back in ... do whatever suits you, but understand there are shareholders here that have a genuine 'core' holding and they want the very best result for that so sorry if we/they/me defend the company against the doom mongers like you, Sean and bozi et al.
Like one poster said recently, 'it's easy to see who's in and who's out.
Read and reflect, as your short term negativity certainly plays into the hands of BHP and NCM.
“Ultimately, if a party wants control or to significantly influence the development of your company, the party should put forward an offer that results in all shareholders benefiting from a premium that reflects the value of achieving control or heightened influence,” Twigger said in the letter.
"So that's it. Talk of 'failure' to raise cash etc sounds like SOLG is unattractive and there's a problem with the assets or something is not right. When in reality it just comes down to the fact that two major shareholders don't like a royalty tap and majority of shareholders don't like hefty equity dilution. Nothing to do at all with SOLG assets or attractiveness - in fact you could say BHP and NCM's actions actually prove that they are very very interested in the asset."
But that is the very thing that isn't right, CD, the fact that our major shareholders have serious disagreements about the way forward. Yes, there is an upside to this conundrum, whereby SOLG shareholders receive a healthy payday as the company is taken over. Whether that's 60p, 90p or £1.32 who knows. I would welcome all three at this point.
But there is also downside to the above that involves considerable volatility if things don't go our way. Objectively, the news from the company of late has not been positive.
Under your previous moniker you were infamous for changing your narratives based upon your positions. I called you out myself for doing so as you're extremely good at writing a compelling story.
I still have a core holding here because I'm stubborn and have invested too much time and energy. But as stated several weeks back I'm trading this where possible and have no issue with people who choose to do the same.
Thank you for your reply, I thought my question acknowledged that casabel and regionals, were different. But hey ho, there is dilution in your scheme and streaming. However I paraphrase that to be ‘when we are stronger’, ie post DFS/BFS. Maybe 10 months away, at maybe a better rate. Nothing more from me this weekend.