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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.
What a top guy…
How many shares does he hold …….🤔
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.”
DBW, the difference is that he paid for these experts to visit. I wonder why he did this now?
Good question
On the plus side he’s clearly encouraged by the results
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.
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.
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?
Eloro, that was the conclusion I reached. I wouldn't have thought he did it just out of curiosity.
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.
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?
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.
Mogg, his exact words were, ' I had some very smart guys visit the site...'. Seems pretty clear to me.
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.
Maybe I’m getting confused with Chris temple visiting cascabel, or I’m just getting too old for this 😀
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
Sorry, it was 'very smart mining experts'.
Overall his tone was positive and he said he'll be keeping his large holding until the asset is sold. However, there's no mistaking the fact that he's as frustrated as we are. He knows the value of what we have and he's optimistic SC and Sangha can deliver. Let's hope he's right.
1984, it's here to stay, but it will be substantially reformed. The direction of travel regarding sustainability has been more not less for the last 4 decades. Younger generations - the future fund managers, institutional investors - want further progress and faster.
I don't see how or why we'd reach a tipping point whereby people would suddenly start thinking "let's destroy the planet faster".
ESG isn't just about environmental issues... Solg could have done with a bit more focus on the G (governance) considering they were defrauded out of several million dollars and managed to lose a CFO after one month, amongst other things...
Isn't it strange adikt.
You emailed WI today. And low and behold, his lengthy reply mirrored almost word for word what you've been telling us and posting.
What a coincidence, not one sentence that doesn't back up your views.
Then how strange that eloro, another avid mailer, immediately turns up to congratulate you.
Strange that all these mysterious emails always support the fantasists narrative. And never utter a word of negativity.
Fantasists impressing fantasists
I emailed WI yesterday, to ask wtf was going on.
To my surprise he replied today.
To summarise, he said he's sick to death of the malaise in solg, and has sent a couple of the boys over to chivy them up, when they got there they said it was like a deserted wild west town.
They made some local enquiries, to be told no one has been seen for weeks.
They further discovered, the equadorians have run out of patience with solg, apparently they've lined up a Chinese company and are going to stall solg till they disappear up their own ars""es.
He said he is now personally on the case, and there will be changes.
He said he will keep us informed through
Adikt and eloro. He said they seem to be on top of things.
SM, trust me on this one it’s a busted flush. Vanity projects always go out of the window when it comes down to making money.
Governments have borrowed ruinous amounts of money hijacked by the left for this kind of rubbish but there is an uprising already.
This weekend could be a very interesting blue touch paper being lit for the massive pushback
And please, “destroying the planet faster”
Just as covid and the destruction that followed was built on a total lie (that a sniffle is going to wipe us all out of we don’t comply), so to is climate change.
It is nothing more than a hoax to rinse people of their money to keep them poor and compliant.
You can be sure of this. If a problem is “global” and requires concession of money, freedoms or lifestyle then it is absolutely, categorically, 100% of the time a hoax
Not to Labour a point SM bit on the covid issue, the propaganda managed to convince the common garden idiot that their immune system could be replaced by washing their hands, sitting down in pubs, keeping two metres apart and accepting experimental gene therapy
In the face of that kind of gullibility, is it any wonder that they’re trying to tell us that the weather will kill us if we don’t stop eating meat, driving cars, putting the heating on or going on holiday abroad???
The utter stupidity of mankind always amazes me. Then Quady pipes up and it all makes sense. Most people are actually really bloody thick!!