Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I wonder if it's a thank you for all you done bonus and we are selling solgold to highest bidder giving you a nice thank you return ,bid comes in later in week maybe let's see
Gino
Colonol on ADFN now ......
Ecuador open for business....remember we present Monday and Tuesday in Quito
https://www.bnamericas.com/en/news/the-mining-potential-of-ecuador---round-table
With production way-off -maybe performance awards will be linked to the number of fish or chicken farms they open for locals or how well they pi55 off BHP - no chance it will be linked to share price as will never be paid out - always dubious if awards are 200% of salary -would have thought salary was good enough for more people - incentive for directors should perform and get paid a salary or get sacked -just usual lining off at pockets
CD (where is he these days btw?) was posting recently that before any real SP action commences, the Directors and Senior Staff will have their 'Performance Related Remuneration' updated.
As DBW says - 'another box ticked'!
Hi SM, thanks for the ALL example which I haven't really paid any attention to. Obviously opportunities exist in the market due to shares being incorrectly valued, going back to the original tweet the question is whether this is one of those cases. I think I agree Solg in undervalued, any way you look at it that seems to be the case... However the market hasn't really begin correcting that undervaluation in a sustained way. Yet. Let's hope the right catalyst occurs soon to kick off that process.
DBW, I think the rationale is that this is more in-line with standard corporate governance stuff and that the company wanted to get it out of the way asap.
It's interesting that the benchmarks for performance and therefore remuneration, were not detailed - at least not that I could see, although I'm happy to be proved wrong (I admit, my eyes glazed over after a while). It will be in the hands of the remuneration committee to establish those metrics, which is normal, and although some companies provide full details, we appear not to have done so.
RK, they are nominee holders.
"The Plan is a discretionary plan that provides for the grant of performance bonus awards to employees and
executive directors of the Group in order to retain and motivate them. Awards can be paid in the form of cash
or shares, or a combination of both"
Would be nice if this was somehow directly linked to the performance of the share price.
Surely this is all fairly standard stuff that should be dealt with at the AGM ....... why would they need to get these incentives in place now......this is not Extraordinary business ?????? .... I know what I think, another box ticked
Redknight.....Bell Potter been there for quite a while .....I think there's some sort of overlap with the holdings shown
Nobody picked up on my Friday 15.28 post that Bell Potter hold 12.5% according to DBWs link...
Well back to work Monday then disappointed if that's all it was hand outs to the board again!!:(:(
Ha, ha, ha! Oh well, it was fun whilst it lasted!
As to the motions themselves, what do people think?
No retreat, no surrender Solgers.
£1 Cascabel - £1.50 the lot. We all own a wee SLICE OF ONE OF THE GREATEST COPPER ASSETS IN THE WORLD - this is a fact. Cascabel is the greatest WORLD copper discovery in the last 10 yrs.
Fcuk 60p / 80p. Min. - £1 Cascabel NO COMPRIMISE.
Study the facts.
Damers.
Time to go to sleep again!
zzzzzzzzzzzzzzzzzzzzzzzzz
You have to laugh. Time to switch off again.
So after all the speculation the resolutions are to approve directors remuneration, to approve a new incentive plan, to approve a new bonus scheme and to approve a new articles of association...
Ha.
Haven't had a chance to look through the particulars yet, but director renumeration changes might even be more mundane than some here had suggested
Late RNS
Notice of EGM out
rcgl2, there are a whole host a reasons a company (and by extension its assets) might not be accurately valued by the market at any given time. I will give the example of another share I am invested in, ALL, formerly IronRidge Resources. For months this share was undervalued because the investment case wasn't clear. They had a strong lithium asset that showed huge economic promise in Ghana with the potential to be in production by 2024. They also had gold prospects in the Ivory Coast and Chad that would clearly require greater capex and more drilling. They spun off the lithium assets and the new company almost doubled in MCAP within two months, because the market knew what it was buying in to.
I don't think that ENSA and its potential is currently valued properly by the market. I think that the PFS we produced was fairly conservative and has done the job of demonstrating to the market that 1) Alpala is economically viable and 2) the management team are capable of delivering what they promised.
For BHP and NCM, the investment case for Cascabel will be very clear, and they will be aware of its yet untapped potential. This is why I think they will be paying far more than the £700m you suggest.
Good points Rcgl. So undervalued or not, selling the Cascabel would leave us almost with a shell, unless they have enough drill results to show that the shell is full of jewels, which is unlikely at this stage. As such, it would be a strategic mistake to get into such a transaction and run the risk of becoming a shell company (for some good time). From a portfolio approach, package everything. Of course, there is a risk-reward tradeoff and a less risky approach would not deliver the highest value.
Hi Sharketmare. My concern is mainly about valuation. Right now Solg is pretty much valued on Cascabel with very little attributed to anything else. So if they were to sell their stake in ENSA, doesn't that raise the question why should we expect it to be worth more than what Solg itself is currently worth?
If 85% of ENSA is worth more than ~£700m, then why isn't Solg worth more than that now, given that virtually no one seems to believe Solg will actually mine it themselves, i.e. a sale is likely. If 85% of ENSA is only worth £700m and that cash was received by Solg how will that help me as a shareholder today? I'll still be holding Solg shares that are worth around 32p which is mostly attributable to the cash they would be sitting on. If they keep some back to fund exploration and dividend some out, I would assume the value of the shares would decrease by the amount of the dividend. So where does that leave us? We've disposed of the most advanced asset, a proven tier 1 target and looks like economic mine, and are left with a load of assets that may or may not become economic mines and will consume a lot of cash to get to a state where value might be released. And some cash on the side. Admittedly the remainder of Solg would then be cashed up and require much less new equity funding which should mean avoiding dilution for holders as those other assets are proved up.
But I guess that brings me back to the question, is Solg undervalued right now and if so, why? And what if it's not undervalued, in which case would selling off the jewel in the crown actually be sensible at this point rather than trying to increase that value by securing funding or JV to build it and retain an interest, locking in future revenue streams?
There's no free lunch here. I feel like we need to avoid assuming that Solg can just sell its main asset and expect to receive more for it than it is currently valued at. If so, why would that be the case.
Not being negative here, I'm just trying to wrap my head around the possibilities and make sure I've thought through all the outcomes properly.
Porvinereal - there's a reason for that though isn't there? It hasn't always been the case. In fact, it was never the case prior to January 2022.
rcgl2, would love to hear your own thoughts to the 3 questions you relay on here. The one around financing is the one that really sticks with me - hard to feel we're not now at a juncture whereby financing for further exploration and mine development around Cascabel simply has to be hived off from the rest of the portfolio. Which is again why I feel that a sale of ENSA is the route we ought to take (I think a spin off poses more problems than it solves).
Bozi, your point on cash rich companies being undervalued is a fair one, but I would hope the asset sale would at least result in a rerate that would allow some LTHs to exit or at least cash in on some of their holding. That is certainly what I will be doing, even if we were only around 60-80p.
Finally, and perhaps this is slightly too tin-foil-hatted, but, our new CFO starts on June 27, 3 days before the EGM. If a deal has been hashed out over the last however many weeks, the last thing you want is a decision maker coming in to the fold late in the day who might have their own opinions about how things should be structured (you would either end up in a situation where she was CFO but not calling the shots, undermining her authority long term, or a CFO forced to make decisions from a position of relative inexpeirence on a deal that she wasn't privy to from the outset). Joining 3 days before the AGM she can quite reasonably watch things unfold without expecting to be on the hook for anything. Perhaps a few steps too far with this one...
Cracking day of racing up at Huntingdon today, my first time at the course. Plenty of hardship before the tide turned and Aiden Coleman landed a tidy gamble on the lucky last. A good omen for Monday I feel!
Bozi, they got 800 employees and one drill rig active that we know of.