Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
You should check out the 50:50 Zijin Mining did with Ivanhoe for the Kampala Kakula project. It is not the only example of 50:50 success with the Chinese. I have been seeing several such success stories, and they arise primarily for one reason. The Chinese are willing to take jurisdictional risks western entities won’t, or won’t pay a lot for. And country risk is a real thing in Ecuador. That accounts for a lot of reticence on BHPs part.
Far more shares had been gifted, and will continue to be gifted if the company pressed on with DFS and vague ideas of development and so on. A sale may or may not occur, but there will soon be no more of this will we, or won't we nonsense that has plagued the company for two years with BHP quite happy to see ever more dilution to help them make up their mind. As long as it is not them being diluted.
You are not getting it. The reason why a bid never came in was because BHP and NCM were always felt in control. They could bide their time and dilute every else into oblivion, and gain control of the company without paying the takeover premium like Rio Tinto did to Ivanhoe Mines at Oyu Tolgoi. There has to be competitive tension, and that was always missing. Please don't suggest that potential competitors could have bought shares on the open market to compete.
For now it is definitely the issue of 180m of new SOLG shares. Hopefully those shares will be cancelled post merger. This is however quite different from what DC said last time which was that CGP would place out their SOLG shareholding and loan the money to SOLG.
I think he assumed it was the issuance of 180m new shares. To be very sure, because the RNS does not make it clear: 155m of those are CGP's existing SOLG shares, and 25m will be new shares? That announcement really is unclear. And the money from 155m of CGP's shares will be loaned to SOLG? Since the merger has not occurredyet, SOLG does not own those 155m of its own shares.
No, they're not. While the West has been asleep at the wheel for the past decade, China had been working hard putting its reserves to use on the BRI and buying up copper assets everywhere it could because a government that expects to be around for 50 years, looks 50 years ahead. Ask Robert Friedland who he'd rather be in bed with, the Rio Tintos and BHPs, or the Chinese? And many of you in the West may be very shocked to hear this, but the answer is exactly the same if the question was posed to heads of states in Africa. I am a bit uncertain about South America (because it is an ocean away from China), but when the Chinese sniff a bargain, they don't wait at all.
You have answered the very question you and some others have constantly posed on this very forum.
Why is no one buying the shares (thereby propping up the share price) to make everyone feel better?
Because this is not going to 5 bag from here, that train left many years ago. 2 bagger? Maybe, possibly even likely. 3 bagger? Doubtful but I would not mind being very mistaken at all. Look at how much BHP paid for OZL, and people here still want to hold out for ÂŁ1.
And all serious money in the world has heard of Solgold, and if they wanted in, they have bought in already. Unlike hopeless retail investors all over the world, they don't keep 'topping up' every time the share price goes down.
The current share price does not necessarily suggest all the nefarious possibilities that many of you like to suggest. It simply reflects how the market is pricing the company's possible reward relative to its risk.
I am glad to see the back of value-adding activities like DFS because it adds no value to this company. What exactly is the company supposed to do with a DFS if it's not going to develop the project?
The question is not whether there is a buyer for Cascabel. Of course there is, probably several. Individually or jointly. It is only a matter of price once interested parties are dragged to the table, something NM never quite managed to do for various reasons, but maybe CGP can. They certainly aren't being coy about their intentions, unlike NM.
I would agree with you if he had been trying to flog 15% of an established operating long life low cost copper mine, and failed. 15% of a potentially long life low cost copper mine, mired in development uncertainty (with shareholder disunity in the controlling party) and no ability to influence that is something else altogether. Can you think of any entity in the world that will pay good or decent money for that? Emphasis on good, they aren't interested in selling for complete peanuts.
Why do you assume that it is either OZ or Cascabel? BHP can certainly manage both, and they will have a decision to make on Cascabel soon. The DFS has been put on hold (cancelled more like it) not because it does not add to project value, but because that uplift in project value does nothing for shareholders because a company like BHP is certainly going to do its own project uplifting.
I appreciate your healthy scepticism Bozi, but it is not appropriate to compare selling a pre-merger 20% economic no influence interest in Cascabel to a 100% fully in charge interest like it was a simple sliding scale.