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Hi, ho, hi, ho it's off with Quads we go............
Yep Jezoo what a great way to make investment decisions, by recommendations on this page.
Thanks BBG
“Analysts have been trying to identify BHP’s next target ahead of its FY22 result, when the miner’s expected to reveal a huge financial warchest for capital management and/or other expansion projects”
Bozi, excellent post and absolutely spot on.
Oh I get it Quady, you seem as sure of a higher sp as you are about going into production.
The only way to gauge the general consensus on here is by counting the recommendations.
I'll just leave that here.......
Good grief Jezoo, you really don't get this.
If we get a funding deal, the issuing of new shares won't be at today's price.
So 300m in new shares at today's Mcap would be approx 46% dilution.
I'm not surprised you didn't include it.
Agreed Bozi, I just didn't include the equity component, because I already answered that with minimal dilution.
I would like 300 million as opposed to half a billion, but let's see what Ingo comes up with.
Spot on Bozi.
Quady - as you know I've tried to lake a longer term view than many with SolGold. However, i must say that i can't agree with your outlook.
Any finance package has to include a portion of equity, particularly one in the mould of $2.5bn like Cascabel.
Quite conceivably we're looking at about $500m in new shares with the rest comi gfrom the instruments you mention.
However, world markets in the face of an impending global recession have swung into view. Going out to banks and other investors for the amounts we're talking in this environment isn't going to be sensible. The cost of capital will be very high and there's an increased risk that we don't get the money we need.
Whilst I'd love to be holding some stock into an organically achieved Alpala production story i can't help but admitting that this ship has sailed into the sunset. We needed to strike in this period of low interest rates and healthy equity markets.
After all, there's a reason that BHP have sat motionless in the background and that's because they know that there's a time where their capital becomes the most appealing. We're getting closer all the time.
Good grief Jezoo how do you think the oil and gas industry works.
The bonds are sold and traded with a date for maturing.
Offtake works by future production, so no servicing for this finance. Yes loans are serviced, but staged and interest rolled up.
Pretty standard.
Quady thanks Sunday reading up on things ATM
Tell how that will work Quady, loans have to be serviced, constructing it ourselves isn't free, no income for years, roads to build etc etc.
Bubble it was Ingo that said so and also reiterated it recently.
Which solgold said so theses lot now or NM?, Guess who's running the show now ?,there will be a bid inho
Sorry Jezoo that makes no sense, why would we be diluted if we construct ourselves. We are talking about minimal dilution and bonds, offtake and loans.
Jezzoo, yep.
addicknt >
"We'd be diluted to irrelevance and it wouldn't provide an attractive return for shareholders."
As would we be if SOLG decided to mine it themselves.
If that's the case addicknt, why did you write that I said it takes one or two years to do DD.
Q, I understood your post perfectly and I'm afraid it's you who fails to grasp the reality of the situation, as in due course will be proved. Sometimes it seems to me even you don't understand what you write.
Sorry addicknt we know we have no approaches. Solgold have said so.
So no DD started.
Please read what I have said as again you have misread.
I did not say one or two years for DD.
Hence again if you read what I said the bid has to be hostile, you will not get an agreed bid without DD.
We have constantly had a strong defensive position. ( I know you don't understand the diverse book ) but it's much more than this.
Maybe my reasoning is correct, as I have called this right, as we have had no bid, when you have said we will get a bid more than once.
Q, "one or two years for dd". Nonsense.
"You don't get a bid for a project of this size unless it's hostile". Double nonsense.
"We have a strong defensive position". Triple nonsense.
However, I do agree that a jv isn't attractive. We'd be diluted to irrelevance and it wouldn't provide an attractive return for shareholders.
You may be correct LunchMoney, but not at the moment.
Solgold have recently said that they are talking to no one. To me that means if they started talking to someone, we would be some time off due diligence, so if they started tomorrow on such a massive project, we are talking over a year, maybe over two. You don't get a bid for such a massive project as this unless it's a hostile bid.
So we have a strong defensive position, which people on here ignore and think that a bid will happen, even though the evidence says otherwise.
JV's . These are complicated, and I personally think Solgold would rather avoid these. Disagreement over various stages of build. Different approaches to problem solving, when problems arise. These things and others always increase costs.
So I see the cheapest most effective way to bring Alpala to production, is to build it ourselves.
One big hurdle is financing. However Solgold seems confident that they can raise the money, so I am relaxed.