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Sorry, it was 'very smart mining experts'.
ESG will be a thing of the past soon and I’m annoyed my money wasted on that tosh. When the s.hit hits the fan, plain old economics will finally return to the market and the additional bull will be flushed out.
Chinese don’t care as rcgl says, they don’t buy into this nonsense they invest to make money. We’ve been let down by dreadful management and waste
Maybe I’m getting confused with Chris temple visiting cascabel, or I’m just getting too old for this 😀
Just on ESG.. excellent piece in the FT today on UK plans to regulate the ratings agencies. Whilst (on the whole) I am pro-ESG and the value it can bring to society (and informing investment decisions), the current situation whereby methodologies are black boxes and the agencies themselves offer consulting services to improve ratings is patently ridiculous.
We need both transparency and harmonisation in terms of how ESG is calculated (and IMO we would be better off scrapping or serious limiting the 'S' factor) and it needs to be done on a global scale, not just in the UK, or EU or wherever. This can only be done through regulation and proper definitions of what constitutes E, S and G. At the moment we are at risk of it becoming (further) politicised and devoid of any real meaning. We should all want to live in a world where companies are responsible stewards of their operating environment whilst generating capital. Anyone who thinks otherwise is an idiot.
Piece can be found here, for those interested: https://www.ft.com/content/61a61fc5-fedd-4c01-bb24-99c1606d446d
add & Darren, thanks both for the information and thoughts.
Mogg, his exact words were, ' I had some very smart guys visit the site...'. Seems pretty clear to me.
Add, really interesting thanks for sharing.
Darren, good post, some clear thinking there. Hope it's good for better than 30p but who knows...
Slug, "Why? What were they thinking?" I'm guessing because they were thinking that BHP or NCM were the most likely buyers and they still needed to raise money from institutional Investors, and whether we like it or not ESG is now extremely important to western companies and investors. You pretty much have to tick all those boxes or you won't pass their screening.... Now they think that Chinese companies are the most likely buyers and I assume they don't care so much about ESG, therefore Solg has much less need for local employees. Also they aren't drilling anywhere, so they don't need all the local geo workers to deal with all the cores, samples etc.
I think your find WI has been to cascabel himself many years ago, it’s what he does before or some times after an investment
So not sure why HE has sent people there, just doesn’t sound right to me
Maybe a miss understanding?
Agreed Add. He had the opportunity at the time of the merger and didn't then. Let's hope that it's not long to wait now.
Eloro, that was the conclusion I reached. I wouldn't have thought he did it just out of curiosity.
Would be good to know actually Elro, might be worth asking him as he's a pretty accommodating guy... would be nice to know just how close to market value we could get. What was NAV again after the merger, 62p?
Perhaps Warren sent in his experts to carry out an assessment so that he can say what price he will accept for his shares. Kind of like sending the value surveyors before deciding what price to put the house on the market for. Positive take on why Warren would sending experts in when he had already visited Cascabel himself in the past.
Excellent post Add. Point 6 is indeed revealing. From that I can infer that Warren thought about getting out but wanted to reassurance before making his decision, hence sending in the experts. Clearly he has been reassured and continuing to hold. Not long yo go I think.
Good question
On the plus side he’s clearly encouraged by the results
DBW, the difference is that he paid for these experts to visit. I wonder why he did this now?
Evening Mathers ….. my opinion on why no one has made a low ball bid is simply because it wouldn’t fly
Hi
Do you ever look outside of Solgold and wonder why no bids at this ridiculous sp?
Have a read, woman’s loud and angry but tells it as it is, may shed a bit of light here
Atb
https://www.youtube.com/watch?v=asS13iqG-Pk
Great thanks add he did allude to point 6 earlier …. Sort of but it’s good to hear
“ I believe SolGold has an outstanding copper deposit and it keeps getting reaffirmed with every smart person I know who goes down there to see it. It is super cheap too. Lots of people are looking at it, at some point something will happen.”
What a top guy…
How many shares does he hold …….🤔
But I emailed WI today and have received a lengthy and helpful reply. The following is a brief summary.
1) He believes SC has 'saved the company' and is pursuing the right strategy. It wasn't easy to cut overheads and to move to Ecuador, but it had to be done. He also referred to the previous mismanagement of the business.
2) The whole board is under pressure and he's expecting some changes after the agm. (Twigger for the chop?)
3) Our holding is a long way down Newmont's list of priorities.
4) He doesn't think BHP are a likely buyer and will be happy to sit and wait for the buyout.
5) He thinks the Chinese are the most likely buyers.
6) He had some mining experts visit the site recently and they came back extremely excited about the project and the 'amazing deposit we have'. He referred to the significant disconnect between the asset and market value.
7) He also referred to how good Sangha is at his job and how his interests are so closely allied to ours.
I was surprised and grateful he took the time to give such a long reply. Point 6 was new information to me.
DG1
I think your post sums up SOLGs situation pretty well……..
DG agree with most and I’m fairly certain a JV is the last thing the board or any potential investor would really want.
I’m confident we’ll get there in the end and the only question for me is whether we hold on to a couple of the other licenses or get shot of the lot. I guess that depends on whether the bidder wants them and is willing to pay for them.
Just need to get through the next couple of months, keep ticking boxes along the way and stay patient
My bet for what its worth is this still goes to the Chinese
But they are clearly not going to be rushed
My hunch is we are good for 30p - circa £1b - but I'm not sure anymore if thats my head. heart or prayers to the big fella
And that big fella isn't Matther
AGM will probably be carnage - but dont really care either way anymore
All just my opinions and views - plenty more mths of arguing on this board I'm sure so lots for the majority here to look forward too
Ship sinks
Sitting on his hands whilst the dhip sinks
Here's my view for what its worth...
in no particular order....just as it come into my head
Previous Solg Mgt Teams have been pretty poor
Scott is doing a good job
He had to cut costs fast and took a hatchet to the company
Him / Maxit / Warren & Probably NM DGR - wanted it sold and once that decision was made the CGP team moved in
Once they had decided they wanted it sold it makes sense in my mind that the quicker the better
However its been tougher than they thought
Suitors will have been well aware that they wanted it sold
Suitors are indeed applying diligence and maybe this process was longer than many had hoped for
Its a massive resource
Its gonna cost a huge amount to get it up and out of the ground
There is the dilema of striking the balance to a price a sale everyone agrees upon
I dare say certain parameters were requested before a bid was placed
Its ok saying it can be extracted cheaper - lets say £1b
So suitors say - well go and prove it then
Hence we start PFS x 3
Its ok to say Ecuador will issue all required permits
So suitors say well go and get them then
Its ok to say we can sort out the tailings / have a pipe to ship the stuff to the coast
So suitors say well go and prove it and sort it out then
We probably do have a Franco or a Silver Wheaton - waving a big chunk of money
But I dare say the terms would be onerous
Maybe we use that as a carrot to speed up a bid from a suitor
But suitors are wise and say - your never gonna sign that deal - so continue on points we have raised above
Company cant release much news to support the price as not much new has happened
We get frustrated and say that the board will be toast at the AGM
But they cant magic up news or make it up
So the wait goes on
None of the holders mentioned above really want a JV - and what would we bring to a massive suitor in terms of our end of a JV - not a lot
The option might be there to split out Cascabel sell it and hold on to some other license areas
There probably is a belief that there are other discoveries to be made
But after X amount of yrs who has the appetite for it
A lot of the board are in their 60's now......probably want their pay day
Berry exited they had too as they were distressed and this smashed our price in a tough market
Nothing to say we wouldnt be down here anyway - but maybe we wouldnt have been hit quite as hard
Very little in the way of buying as we are rather binary now
We either eventually get our sale (crossed fingers for an auction to drive up the price to an acceptable level)
Or we dont - and if we dont we need some cash
CGP shares not worth much down here - so are we back to streaming deals
Copper price looks a little perky but hasnt really kicked into gear
Gold looks good to move up if you believe the gold bugs
Copper defecit is looming - if what I have been reading for 10 yrs comes to fruition
So all in all - we are in a tough spot
Not quite terminal and certainly no fat lady singing just y