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Worth posting this again. Non dilutive financing next up taking us above 20p. Then people will start realising the potential. All in my opinion.
RE: Great time7 Mar 2024 09:29
Roxi I agree. In my opinion the only risk with SOLG was their financial viability. Slashing their burn rate helped but to me, having a recent MOU signed for a Hydro-Solar plant with multiple multinationals to provide additional power to Cascabel, and most notably the confirmation of the $3.2bn commitment to actually build the mine has taken away all perceived risk. You simply do not get the President of Equador changing his diary to not only take the 8 hour flight to Canada but actually stay longer than planned just to sign a flagship history making deal with little SOLG IF he wasn't 100% sure the mine was not 100% funded and would be built. There are very exciting times ahead. 50p-£1 is realistic for this share, sooner rather than later. But, I'd emphasise its just my take on things. GLA.
SharketMare I have been investing for 43 years now
I don't need to work and can have anything I want in life.
That means I am good at it.
I don't think you understand what we have here.
This is not an investment where you run a slide rule over the figures and decide what is feasible and what isn't.
But maybe it's because I more positive about the outcome that I am more relaxed than most on here.
Yep something brewing
4m traded already
Nm
Non Dilutive financing = No cap raises necessary.
An NSR and Offtake arrangement can cover capex bill.
If we show Jiangxi that Franco can give us a $1b NSR - they will match it.
"A hybrid non-dilutive packing via Jiangxi"
Can you spell out what this actually means, with numbers next to it? Jiangxi aren't in the business of providing non-dilutive funding to the tune of billions to companies they hold a small stake in.
Separately, Quady, your leaps of logic have no bounds. Never has the word 'hence' been so misused.
Fortissimo what has been dragged out on GGP! Thats a bad example as name me one other jv that has moved so fast to get to production? Nothing is being dragged put there
A hybrid non-dilutive packing via Jiangxi allows us to control things.
it cannot be compared to GGP situation.
Nm
I think any JV outcome would be a starter gun for other bids. I don't think you'd see SOLG involved in a JV for very long. Just a means to an end.
There are plenty examples where you even see super majors entering into JV's only to sell out later on in the development process to another player due to a change in strategy or switch to different commodity focus etc. JV's always offer the opportunity to 'sell' your stake and I think should anything like that arise it will be a shortlived experience for SOLG investors. Someone would buy out our JV stake at some point. But I agree the danger of getting involved in JV's is that teh other partners can stretch things out which is fine for deep pockets but not good for minnows involved. GGP is a good example... Newcrest stretched that out and it's costing GGP more and more cash to keep in the game base don 30% stake and now NMM want to divest their interest, it's either going to Wyloo or another and they can simply squeeze things out again which hurts GGP further. So yes... JV's are precarious for juniors as the big boys know they have zero ability to generate cash until production and need to use their equity or asset interest or loans etc to get by.
fomad, some time ago, when we were taking pfs2 as the base case, i did a back of the *** packet calculation of what a jv looked like. as far as i could discern it didn't look attractive.
i'm not going to repeat the exercise as there are so many assumptions involved as to render it a pointless exercise, however, regardless of which sector a company operates in, i've rarely seen a jv ending well for the junior party in the relationship. bear in mind what the ex-ceo of glencore said last year; it's the business plan of the majors to exploit the juniors.
As always addicknt I can have a sensible conversation with you on here.
Part of me agrees with you on parties in the data room wanting clarification before bidding.
But then they would have had to be part of the discussion with the government.
That to me would imply only one party interested.
Next is would that be enough for the recent government announcement.
I personally think not.
I still believe Solgold are taking the project forward and we are near to getting the strategic review completed.
And I think yesterday's higher Offbook interest was largely down to Fund managers being back at work after PDAC...
But I also think a lot will be watchers for the time being, waiting for us to secure our cash position and then whoooshhh...
SOLG has been claiming Cascabel is a Tier 1 well back into the Nick days...nothing new...
But it fits BMO Caapitals definition...
Q, I agree, but the investment obligation is separate from any other discussions. Think of it as a liability on the balance sheet and it in no way implies anything about the ownership of the company.
Personally, I see all of the recent announcements as being part of Caldwell's determination to present the company as a turnkey project to interested parties (I know you have a different interpretation of the word 'turnkey', but we'll have to agree to disagree on that one). I also believe that the reason for this is that the interested parties in the data room have told us what they want to see delivered before they bid, and this is the work Caldwell's busy undertaking.
The past few weeks have seen a sea change in many respects - the governmental enthusiasm and commitment being critical - and we've also seen the result of many months of work by our team beginning to be revealed. It's all good stuff and confidence has obviously shifted in our direction.
Fomad - a JV with Jiangxi is a fantastic outcome. Will BHP types be happy? No. BHP types can make a suitable offer or bugger off
Quelle surprise ! Someone seems in a rush to push all the formalities out before the main course 🥘
9p in sights today then...
ONWARDS & UPWARDS!!!
Thanks, I understand the buyout potential but I've always been less sure on what a joint venture means for the value. I understand it's probably better for value in the long term (5-10 years), but I just want to manage my expectations if a JV is announced with a big name, what do my exit options look like. If the share price peaks at say 30-35p, I could have got that price over 5 years ago so wouldn't be an amazing outcome for me. I would be tempted to wait until the mine is built and producing to get full share value.
I prefer a quick buyout, but the way Solg have positioned themselves over the years, I have to consider the option of them self-financing and doing this the hard way. The middle ground to that extreme option is the JV of course.
I believe the 'tier 1' reference is advertising (For Sale sign has been hoisted) to prospective buyers. Almost the starting point for negotiations to buy Cascabel
Non dilutive funding next...
And I repeat...no Director/Insider buys means something is brewing...
They do seem in a rush all of a sudden don't they?
They had until April 1st to release the technical report, so releasing it now suggest in my opinion that they needed to get it out there before issung some other news... and we all know what that might be about.
Official signing of investment protection must be up next in Ecuador but not sure that can happen without evidence of the funding backers or partner deals. One thing is sure... Mr Noboa will be going for max publicity so I would expect a well documented ceremony as $3.2bln is Ecuador's most historic investment commitment to date and spells the beginning of major mining projects in the region. It will have super majors around world looking as well as neighbours like Chile, Colombia, Brazil etc. They'll soon have a new metal exporting powerhouse to contend with.
Https://www.mining.com/ecuadorian-government-releases-controversial-prior-consultation-manual/
Good morning addicknt.
Understand, however what we can say is no bid is on the table at the moment and not only was the undertaking taken, it was accepted.
Hence our current position.
Fomad - I believe a successful bid for Solg (should it take place) will be in excess of the NPV figure of 3,2B. So 100p +
Morning Q, yes, the corporate entity has committed to spending 3.2bn, but the question is, who will own that entity?
If the business is sold, the commitment simply passes to the buyer. I take it you can see the difference?