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.
Q, au contraire.
The only reason we'd head in that direction is if we can't find a buyer. If we can't find a buyer, we'll struggle to raise finance. If we can't raise finance, we're fecked.
Apologies if someone has already said this and I missed it, but I read this differently than what I see discussed.
There are two statements rolled into one, albeit that they are related: completion of deal, and confirmation that the board needs a shake up to remove such errors going forward, which leads to the other message; we are removing that which a future owner would not want, so that they can come in clean and garner immediate goodwill instead of bad will that would come from laying off workers and management.
I've been through a number of exits including one that looks very similar - potential buyer wants one asset for which they will acquire the company, but doesn't want to have to handle everything else, so the existing company is given the option of either ditching it all or spinning it out to a newco that is not in competition. In my opinion, this is what is happening here, SOLG is being prepped for sale including known asset (Cascabel), and the exploration side which is just a cost at the moment will be split into newco owned by existing shareholders if they want it. If this is the case, it will be announced shortly after 27th.
Here's the rub though - if splitting off newco, will existing shareholders see full benefit of current asset value? That's why I'm neutral at the moment - could be a massive buy opportunity, or it could be the death nell of asset value. I won't sell up, but I won't buy more either until things are set in stone.
Hi Monte could you provide the link please.
Jezzoo how on earth is going to production desperate.
It's the let's get it sold group that's desperate as they have been for over ten years.
Addicknt agree cheap as chips
Just think of all the new jobs to come once that ENSA block gets into someones hands with deep pockets. Must look forward, not just here and now, Ecuador are set to be transformed through mines like Alpala and others.
On a side note, assuming cash pile is $80m as of now and we have about $25m burn planned for first half. That leaves a decent $45m+ going into H2. I think their aim is to do some target drilling on regionals and hope to hit big while also doing the ENSA sale JV talks or full sale. If they hit big on Rio or another then it might force buyers hand to act more quickly but certainly strengthens SOLG's hand either way. That's why moderate exploration is always the best defence to low balls. As for the other 60 55 odd licence blocks... they simply have to get these buttoned down or lose them. So JV them to linden or sunstone or Gina or FMG etc... just don't relinquish them for nothing.
Over the next couple of months we know we're going to see a raft of announcements.
1. End Feb prospectus and merger completion.
2. Details of reorganization and cost saving.
3. Release of findings of SR, which has already been five or six months in the making.
All of this will be transformational - what's not to like?
Oh dear all those locals making bread, coffee and planting trees losing their jobs is not going to go down well with the Ecuador government is it ? but hey at least it should all give us a feeling of well being that we have supported them financially over the last 5 or so years ;((
You too skint.
:)
I agree the Bozi solution would seem the most likely right now ..
12p today
great...............
Got to be worth a further punt for a quick 50% shark, but that's pretty much it now, my 55p by Friday posts in jest are now looking like a distant possibility ;((
Have a great weekend all except TR xx
The smell of desperation of the going to production faction has grown stronger this morning.
Bozi @ 07.38 - bang on the money. I put the chances of a takeover at 5% at best at this point. We are gearing up towards the solution Bozi mentioned some time ago and again this morning, a spin off an sale of Cascabel, allowing SOLG to continue exploring across the rest of its portfolio. How the company decides to do this and reward shareholders remains to be seen. I hope it isn't through a joint venture.
It's nice to read some humility in today's RNS, a long overdue recognition that the company has been run appallingly from CHQ. Our interim CFO has been thrown well and truly under the bus today which I don't really have much of an issue about.
Good to see a firm timeline put in place for completion of the merger - I will (slightly reluctantly) add a few more here when I get paid on the 21st to for a 10/20% trade on news of completion.
Redknight, you seem to live in a dungeons and dragons type world, constructed of your own financial, fantasy make believe… endlessly creating new fantasy alternative scenarios.
Exactly Monte.
I told Twigger 18 months ago...just sell it!
Now you see why in Dec 2021 I was so set against the OZ Directors, especially including Twigger and Clare...
Now Nick has taken the reins again and it's a shambles...again...
Mind you...this is the opportune time for a bidder to pounce, sadly with a price lower than it would have been before the unholy alliance of Mather, Ncdonald and Sangha...
So let's hope it triggers a bidding war...
No wonder we couldn’t get a JV partners for any of the regionals… as a business partner, we must be seen as a total liability… who wants to partner up with a proven, known, incompetent company, led by a lazy, underachieving management?
Anyone think this thread header was a deliberate pump?
RK1, how many times have we "called their bluff" now? 12?
If you all except that the board have been utterly incompetent for years it makes things a lot easier to understand here.
You just open your eyes.
On reflection and irrespective of the regulatory process that must be completed..
I think they're calling the bluff of prospective bidders, probably Jiangxi...
Put up or shut up at a decent price, or we sell part or all of Cascabel to Mitsui...
We had an experienced and competent CFO but Darryl pushed her out.
But we lumbered Ingo with Coroorate Finance and CFO while the Board took so long after Priy Jayasuriya resigned (or was pushed)...18 months...
Certainly Quady
Look at the bit after the 2 comments where it say strategic review
About 3 down it say
The direct or indirect sale of a stake in the cascabel project
For anyone who remembers the old business chestnut, it's the 3 envelope job...
First envelope...blame the previous management...
Meanwhile...I suspect the prospective buyers that Maxit have sounded out fall into three camps:
1 Those that would buy SOLG, lock stock and barrel. Possibly including Jiangxi and the likes of Fortescue
2 Those that basically just want Cascabel, including Mitsui?
3 Those that would be happy with the rump portfolio, including DGR, CGP mark 2 and SOLG mark 2
The final deal will be the alternative that produces the best total monetization.
Monte it does not mention the sale of Cascabel in the strategic review because it hasn't been done yet.
Also in the announcement of the strategic review it mentions the best way to advance Cascabel, nothing about a sale.
However possible I have missed something, so please feel free to post were it says the strategic review is to sell Cascabel.