Member Info for addicknt

RK, I don't have a view - I was merely posing the question. I don't know if they've signed something saying they won't attempt to renegotiate, or not. Do you know?

Since the deal was announced CGP has become more valuable whilst we have declined in value. I wonder if the CGP directors will want to renegotiate the terms i.e the number of SOLG shares exchanged for theirs.

Great! Missed the deadline for submitting questions!

Bubble, sound advice. Do you happen to know of a gold/copper explorer that has vast reserves, is massively undervalued and is currently up for sale? Let me know if you find one.

I should have added that both LNG and tanker rates are still very high...unsurprisingly - normally, if a recession is on the way tanker rates fall much quicker than anything else.
So, the picture may indicate that prices of consumer goods will fall, but energy costs will remain high, and certainly much higher than the government has gambled on.

indices are not that good at predicting the the future, but one that has a better track record than most is the Baltic Freight Index.
As we know, one of the key elements of the current inflation has been the post-lockdown demand for containers and the short supply of container ships. Freight rates reached record highs, however, they have now turned emphatically in the other direction and have declined significantly. Indeed, some brokers believe a complete collapse is on the way, although current spot rates are still marginally above pre-pandemic levels.
This indicates two things: the probability of recession is almost guaranteed and inflation will fall. The key question is; will inflation fall quick enough to avoid a recession?

DBW, ha! Didn't spot that!

appears to be having different reaction to the deal and strategic review.Both Solg and Cgp up again.

RK, I mentioned it the other day in the context of their inability to raise new monies to take part in a fund raise.
The names you mention clearly are not worried about the dilution for the simple reason they don't anticipate this going much beyond the merger.

MR, the people who post here are mainly long term holders and are not interested in minor daily trades. Frankly, I'm pretty sure no one's interested in whether you make fifty quid here or there, they are focussed on the implications of Friday's announcements and what they mean for the future of the company. Statements such as the one you posted this morning are quite simply irrelevant and if you'd been here for more than three minutes you'd understand just how regularly BR increase and decrease their holdings by a fraction or two.

Quite right, Quady. We could have predicted MRs response as he doesn't really understand much about this share.

slip below 5% again.

rcgl, yes, that was it. Thanks for reminding me.

anyone recall which corporate event only received a majority of board votes in favour I.e it wasn't unanimous.
I remember being surprised at the time, but have forgotten what it was about.

One other thought. CGP have a strong animus towards NM...board meetings should be fun.

I wonder if the merger has been prompted by a third party? Discussions were taking place and the bidder said they would only move forward if they could be assured of the 15% interest held by CGP and the only way that could be guaranteed was to do a deal first.
Btw Bozi, yup, I fit your description. I've been holding here a long time and want a return asap.

Bozi, I understand your position but would mention one thing: CGP are fully aware of the funding need and I'm pretty sure they wouldn't be doing this if they felt the money couldn't be raised. Either that or they know a corporate deal is already being worked on.
I'm equally sure that if they do the deal and things get bad, they'll be on the receiving end of legal action from their shareholders for gross negligence. Remember, when doing a corporate deal there is an all embracing disclosure process, so they'll have access to whatever information they ask for. This gives me comfort.

Some interesting thoughts, thanks everyone.
One comment: we have been very focussed on BHP as being the most likely bidder (me especially, and I still think they are), but what we must remember is that the review process will involve Citi having discussions with a wide range of interested parties - in fact they wouldn't be doing their job properly unless they cover every base.
When you get locked into a process like this and if a decent number of interested parties emerge as buyers, it's sometimes easy to put other options on the back-burner, particularly if you know the other options involve doing something that will probably upset some shareholders...such as another fund raise (by the way, I consider another streaming deal as being a non-starter)
It's also time consuming and tricky to attempt several different things at once; in other words, running a disposal campaign is difficult to sell to potential backers of a fund raise if they think "what's the point of us getting excited about putting money in if ultimately you're going to flog the company?" The same is true in reverse i.e talking to buyers if you're intent on raising new money. The mixed message can be difficult to sell.
So I come back to my view that a smallish fund raise will happen whilst simultaneously Citi go flat out to find a buyer...and bear in mind, their fee will be a lot bigger if they flog the company rather than raising money.
Anyway, at least we've now got something concrete to discuss!

Neither DGR nor NM has sufficient cash to take part in a sizeable fund raise. They are already being diluted by the merger and their influence will be further reduced by the placing of two new CGP board members, who I think we can assume will be looking for the exit door.
How likely is it that either party will be prepared to see further dilution? We will almost certainly need some extra cash simply to get us through the review period, but there must be a question mark over whether the company will seek a large enough sum to get us through to the end of next year i,e the production of the DFS. And even then that wouldn't be enough as we have a significant requirement for general working capital and exploration.
I understand why the company mentioned funding as one of the review options, but I'm struggling to see why it would be in any of the shareholders interests.
A disposal could take at least six months to complete, so some cash will be required just to keep the lights on, but would they really go for $100m now? It doesn't seem likely to me.
Yesterday was a very weird day. I can't think of any situation that I've seen where a company effectively puts itself up for sale, particularly one which is so undervalued, and the share price actually falls. What was in the minds of those afternoon sellers? I guess many of them will have been waiting for this day to come and yet when it does arrive, they bail out. How perverse is that?

Bozi, maybe it's just me and although I get your concerns I'm feeling far more optimistic. I hope that optimism isn't misplaced.