We would love to hear your thoughts about our site and services, please take our survey 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.
So you want someone who will show even more desperation? Sorry, but this is amazingly naive.
Eloro - what does JVing regionals achieve now? Zero.
See my previous reply to Fort. It should have been a strategy 3 years ago but now there is zero point. None whatsoever.
An end date on the SR is also a folly when you have a crucial project plan upcoming in the next 3-6 months.
If folks want to see this through then they need to wait for the new PFS to come out in the wash and back the current team to get that done.
I'd say things have gotten pretty desperate, no?
Fort - some of what you say is fair and you won't find me disputing but there's some further context required in relation to some of your points.
1. Cash spend - It is without doubt that SolGold became a rather bloated organisation and one of Caldwell and Maxit's aims was to get back into shape. We booted the CEO, merged, started making swathes of employees redundant and kicked off the SR.
Unfortunately, with that will come a fair chunk of capital wastage. That industry leading exploration cost per lb will have taken a beating, but it's a consequence of taking a large block of licences whilst the cadastre was open, employing the geologists to start getting about them and basically building a company that could morph into a medium sized miner with room for growth.
Ideally, that strategy should have been put to shareholder and stakeholder consultation back in 2017. Had it, Mather would likely have got the idea that most were happy to flip Cascabel back then for £500-750m and we could have saved ourselves a few years and lots of pain since.
2. They could have farmed out the regionals but there are a number of other considerations in play here. The key one being that one of the major stakeholders vehemently opposes joint ventures and is quite publicly on record saying such. It also created a convoluted structure that is less optimal if you have ideas about selling the company. Does an acquirer want a load of 50% stakes in projects with partners that could be AAA or F rated?
It boils back to point 1 and the empire that was being built. I've gone on record many times in discussion to point this out as it's a point of due diligence that any shareholder needs to be comfortable with.
3. They've played a part is destroying the price. As the company has shed it's timber the share price has reciprocated. Part of that is due to the strategy which was to mothball all exploring (thus removing excitement for investors) and effectively do desktop work whilst it talked to stakeholders and suitors.
Add to this a fairly stale ans desolate market for commodities and juniors amongst the backdrop of the wider markets where people can get 6% on their cash and yeah, it's only us lot that are happy to take the risk on SolGold right now.
As for arrogance, I'm not sure what gives you that feel. I've not had any direct dealings but from what I've heard on the grapevine there's no arrogance about this at all. They just don't have a bazzing news release that they can share with everyone to pep them up ahead of voting time.
This AGM is all about recognising the corporate dynamic in play, seeing through the noise to get a feel for what management have achieved and could achieve with 12 more months runway.
If we got to this time next year and we were no further along it would be a different matter entirely.
Kapil, 'we need someone who will show some desperation'...have you taken leave of your senses? That's the very last thing we need.
Red, firstly, I have not been trading in and out such as your good self.
Secondly, you and other folks keep talking about the SP falling. 8p to 0p is not as bad as 40p to 8p. So how worse can things get? Scott certainly oversaw the SP falling from 20p to 7p through his failure to deliver.
What would I have done? I would do what I said I would do. Scott said what he will do, and hasn't achieved much except for the falling SP and a never ending SR.
-Jv the regional.
-Repair the relationship with BHP rather than always reminding everyone that they voted against you.
-Put an end date to the SR.
-Auction the lot rather than wait for it to be nationalised.
End of the day, we are all here guessing. I feel terrible watching the SP going from 40p to 7p. So, I won't feel any worse if it goes from 8p to 0p.
Scotts a pathetic leader, all talk no action. His corporate speak about resets and focusing the company on creating shareholder value is just that, talk! Shareholder value has been utterly destroyed under his watch. We need someone who will show some desperation, someone with a bit of gumption who is prepared to scratch and claw their way to a result. End the strategic review and start some corporate action in play (or at least threaten to), show we have other options than just sitting around waiting for a bid.
Scotts not really living in Ecuador btw. He lives in Canada and just flies down every now and then for a holiday. He's filling in time until his retirement, totally the wrong man for this job!
Btw voting Scott out doesn't mean BHP just assume control of the company, that's obviously not how it works.
You are absolutely right Eloro.
Definitively, DC persuaded the Board (but not Ingo or Ayten) to go for a cashbox raise, against their own advisors.
It was a catastrophic failure and they had to go cap in hand for money.
That was the start of the slide and Berry Street liquidation was the final straw...
"Too much about this company is reduced to guessing because we are not properly informed. "
So please tell me Eloro what we are not being properly informed of.
We have been told all the actions that Scott has taken to streamline the comopany.
We have been told PFS3 is coming in Q1.
We have been told there are 20 companies in the data room and 5 have done indepth site visits.
We have been told there is enough cash to last until June 24; that Operational cashburn is $1/month and that of necessary we will sell the former Cornerstone holding.
But on top of that we can do another modest streaming deal any time we want.
We have been told two of the Directors are leaving and a new one joining.
So what are we not being told.
The company is on hold pending the PFS3, which a Director has told me will substantially derisk the project, that we are not a mine builder and that the company/or Cascabel plus over 80 projects are available for sale or JV.
What else is there to know?
Add, the only person who replied to my email is Bob. Scott didn't bothered to reply. Bob is pretty much saying the same things as you have posted. However, Scott is the ceo and I have lost confidence in him. The 3 years is how long I have been invested here. Yes, I had my chance to leave at 40p, but believed that with the new management team, we would be sold. That hasn't happened. Worst of all, even Warren has lost his previous enthusiasm. Just watch his body language these days whenever solg is mentioned.
So Eloro...tell me precisely what you would have done to arrest a slide which, albeit accelerated by the Berry Street capitulation, mirrors the savaging of so many other mining companies...
I have shares in a Canadian mining company producing a million ounces of gold a year and its flat on its ass...
Be careful what you wish for..
Scott is doing a good job. He's cleared the decks for a better PFS3 and a sale. There are 20 parties in the data room and we know at least one is excited by what they've seen.
The fact is that Junior Miners are bombed out left right and centre and the M&A boom is only just getting going.
Also becauses of inflation, uncertainty and high interest rates there is no chance of a minnow like SOLG funding Cascabel...
Unless...they do a big streaming deal like Luminex...
Scott may have a very generous package but only $200k comes by way of salary...and he's moved to Ecuador.. He may have share options and shares but he won't get anything like the reward you are jealous of unless he engineers a sale.
And then we all win.
And I also think we should vote for Mather. He may have made errors in the past but he has huge skin in the game and has only sold a modest amount of shares for tax purposes.
Trust me...he Scott are the best people to protect our interests. Sangha and the CGP crew also have a vested interest.
And I will say this...if I get a sense that a lot of you and the institutional shareholders are going to vote out most of the Board, I will be reducing my holding substantially before the AGM...
If you dread a forced sale or liquidation the best way to get it is to boot the Board...watch the SP collapse then...
Eloro, I suggest the best way to express your concern is to ask questions at the AGM and to email the company as they have outlined in the Circular. I admit their track record in this respect is not great, but they'll certainly get your drift, particularly as you will not be a lone voice.
I'm not sure where your reference to three years comes from?
As previously stated Add, I appreciate your pragmatism. Like Fort eloquently stated, they've burned through the cash with little to show for it. I have lost count of the months, if not years, since the company indicated that they would look to do something with the other concessions. They have done nothing to bring money in and are taking us for granted that we will vote for them and accept raise after raise. I am disappointed that we have had no news leading up to the agm. As far as I am concerned, things cannot get any worst than they are already and they are expecting us to vote for more of the same.
I feel that if we don't show our displeasure, we will still be here in 2025 no further a long. All of the reasoned arguments put forward when Cornerstone took over hasn't led to any meaningful outcomes. I would rather see things get shaken up than passively wait another 3 years for more of the same.
Eloro, you say we're 'comfortable' waiting - we are not (or most of us aren't). However, we are realistic and understand this is taking much longer than anyone hoped. We also understand that if we loose our CEO it would be a raging disaster. It's a matter of pragmatism.
Bozi, of course it's not easy as big price tag asset require more intense levels of due diligence as witnessed by the near 12months it apparently took Franco before they were happy. And they were happy... the asset is prime time stuff. But as a management team, you sit down and do an SR... that doesn't need to take 3 months nor 12 months... it could take a few weeks. But even if it takes 8 to 9 months... by then the reality should be made clear to all. We are going to need to get 'exploration' back underway as ENSA sale will take time.
That's the it. That realisation should have been acted upon. Instead Scott and team thought it best to conserve cash and render the company a zombie in investment terms. No development ... and no exploration. Zero. But the reason why I've come out punching lately is due to the following:
1. They've burned through nearly $70m and delivered zero
2. They could have and should have done deals on regionals to get some 'free' plays on a number of targets. Eg cash carry on % earn in etc etc.
3. They've destroyed the share rice due to their poor management decisions.
That's why they need voting off. No management team would be arrogant enough to think they can do that and swan into an AGM and expect to come out with loads of votes.
Most management teams would be doing their best to deliver 'growth' catalysts for the business and finding alternative ways to fund that activity that does not require cash raises/cash burn. Free carry deals etc.
They 60 odd licence blocks we hold are costing about $6m a year I believe... what's the xxxcking point ???
As for the staff cuts and cost savings??? Mmm... seems like we have 200 security guards protecting cascabel these days. Can't see the need for anyone else!
Rant over... but ias you can see t has little to do with wanting a sale done in 12months. Much more than it.
When is the AGM voting open?? I'll be getting stuck in early doors that's for sure and I am not the only one.
Bozi …… pretty much agree with all of that
fort, well done on outlining our frustrations (immense) of how poor the current management have performed over the past year! not much to be proud of, sorry to say!
yours truly also ****ed off!
At least SM, the SP falling from 8p to 0p is a lot less distance to fall than the 40p to 8p which we have already endured and none of the wise pontificating here arrested that fall.
Fort - you've given new management, i.e. Caldwell a year to produce an event bearing in mind he has started with a bloated company, a PFS that didn't really wow anybody and a geopolitical position thrown up into the air by questionable government practices.
Do you have any real appreciation for how long things take?
It was never ever a case of walking in here, putting a bow on the company and prepping for sale in 3 months. That just isn't realistic.
Communication to the market has been less than what we all want but the strategy taken meant that newsflow was going to shrink. Would you have rather he gone the other way and fluffed the market with news all whilst going round in circles in the background?
To be fair to Scott he is trying to break the SolGold wheel. With the monster that is Cascabel that is no mean feat but some investors are completely misreading what is involved in getting this from where it was to where we'd all like it to be.
Reading between the lines, I'd say we're closer than we (you) think.
TheItalian - resolutions 10, 11 & 12 are explained in the AGM Information Circular. Pages 13-16.
Re: use of funds, I don't think any chance they will elaborate on that. It is basically asking them to confirm their strategy and corporate events over the next 6 months. Doubt they know themselves!
There is little new in 10-12. Just the usual flexibility to raise funds, with flexibility to dis-apply pre-emption rights.
Always a good option to have. I just trust the CGP boys less with this option vs. previous management.
With BHP in control the share price would be decimated and we'd all be diluted to oblivion. So far the only alternative I've seen you present, Fort, amounts to 'sticking Cascabel on eBay'. I am glad you are not running the show.
Guys, if I was young, I perhaps wouldn't object to spending another 3 years waiting. So far, 3 years of waiting, late PFS, muddled fund raising, and now mudfled SR. I don't understand how some folks can be comfortable waiting and waiting? If everyone are comfortable waiting another 3 years while guessing here, then so be it. I should be happy to leave at my break even price. Sadly, that price isn't 8p.
I don't mind being called whatever label cones to mind. I don't believe that you are all happy with the terrible SP, aside from the long timers who bought at 3p.
TheItalian,
To be fair, Eloro is correct. Lets face it, you've been in touch with SOLG several times and learned zero. Why? Because they can't tell you anything that is new material to market. And as you are fininding now, be careful with cosy chats as it's a bit like snake eyes... you can feel comfortable when you really shouldn't be.
Management are to be tested and proven on what they have achieved over 12 months period. And SOLG new BoD's have failed miserably. They've achieved absolutey zero. Here's my summary...
1. They've achieved share price destruction
2. They have failed to deliver outcome of promised SR
3. They have failed to deliver a monetisation event
4. They have failed to deliver the promised cost savings
5. They have failed to communicate the business direction to the markets
6. They have failed to deliver any shareholder value or growth in the period
The worst thing of all is point 5. They have told the markets that we are not a developer. They have told the markets that we are a mine finder and explorer.
They have told the markets by mothballing all exploration that we are no longer a mine finder or explorer and also not a developer. So what are we Scott? We are a bunch of inexperienced SOLG shareholders who are trying to sell a world class Tier1 mine which quite frankly could be stuck on ebay and sold in a week for market rate.
You can't vote that incompetence back in?? You are out of your mind.
Pre AGM...in next 4 weeks) they should have outlined the plan to 'return' to being an exploration company. Outline the plan to sell ENSA... as result of SR etc etc.
These are the minmum commitments expected. Instead... it's just ... vote us in as you have no alternative (oh but we do Scott!) and we'll drag things out to Q1 and then do bit more dragging out to H2. By then we'll have the shareprice to 3p and shares in issue around 7bln of which CGP boys will have 30%. See how it goes? No way. Vote these idiots out and you'll be better off with BHP as at least the market would believe someone is in control and the asset is going somewhere.
Eloro - at this stage, I disagree.
I would guess that someone could make a move upon the publishing of an attractive phased development plan and the indication of financing being achievable.
If we sided with BHP then you'd have to wait whilst they pushed people into the positions that matter. More wrangling, more politics, more heave and more ho.
And that's without begging the question of how much BHP would buy us for.
If getting sold pronto no matter the outcome matters so much to you then you might want to review your position.