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I indicated the terms of the interim funding package would dictate whether I would continue to hold or not. My worry was that we may see a deal similar to that at BCN, which effectively destroyed any chance of there being a takeover and therefore removed any excitement in the share.
This has not happened. In fact, it seems to have been structured specifically to deal with this possibility - in other words, it does not tie the company's hands.
The absence of dilution is a masterstroke - again, reference BCN.
The company appears to have given a masterclass in how to arrange this type of funding and is excellent news for us shareholders.

element of the announcement was the very clear statement of just how much merde Cornerstone are in. They really are in a very weak position at the moment and it'll be interesting to see how they get out of it.

Very. A lot to digest, but this is excellent news.

It set out a two phase process - interim $150m and then full funding, which included off-take etc.
Admittedly, this got a bit confused later on when there was a suggestion they may be simultaneous. Personally, I don't see that happening.

Unlikely, but possible.
If there is a package put in place for full funding, it will be conditional and this conditionality comes at a cost in terms of Commitment Fees, which I'm not sure the company would want to pay.
I still see this process following the path the company recently set out.
For me, the structure of the 'interim' funding and who the investors are, is absolutely vital to trying to understand how this may play out and whether to hold or not.

TMT, indeed, they've very successfully taken advantage of the current corporate debt market. The money will/is, being used to redeem the near term debt the company had, which was on less favourable terms. But please note, it's not designed to provide a significant short term increase in liquidity...it was a debt re-financing.

schlem, agreed. He must have been able to paint a very rosy picture, particularly when weighed against the current general background.
As I said over on the SOLG page, I believe the level of liquidity, which appears not to be the $2bn originally talked about, will rule New out of the picture at Alpala. New have other fish to fry...or at least, it seems that way to me.

schlemiel, the new bonds were issued to re-finance the existing bonds, which were due for repayment. The lower coupon and long maturity dates will be very helpful.
It doesn't increase their immediate liquidity, but the lower rates will do so over time. I'm also assuming they were part of the overall funding package recently announced and therefore, the available liquidity is not $2bn, but closer to $1bn. Just about enough to buy out our 30%.

Interesting to note that $1.15bn of the recent Newcrest fundraise has been utilised to re-finance various loan notes and is not available for other purposes.
It seems likely the balance will be used for GGP and their other projects and not SOLG. I maintain my view they will sell their holding to BHP, or some other bidder.

Quady, thanks. There appeared to be some confusion from another poster.
Would I be correct in thinking you feel upbeat after the discussion?

watch the webinar and am grateful for people's observations. I've been trying to work out the overall tone, which I think is positive ?
Someone raised the question of licenses and the tardiness of their arrival. It was suggested that for Alpala may not yet have been granted and this was causing a delay in the interim funding announcement.
Surely, if this was indeed the case, the company would not have made what amounted to a definitive announcement that the funding had been agreed?

No revenues=no position in any index of top companies.

Surely, by now, we have all learnt not to believe timelines given by the company? Let's face it, the track record ain't impressive.
However, on this occasion, when they're in the hands of others, it's acceptable. The investment community is notorious for demanding timelines, but very rarely sticks to their own - especially banks, who are simply useless bandits.

schlemiel, as I think you know, I've been arguing the case for Newcrest being unable to take on Solg for some time.
It seems to me they are fully stretched, or will be, with Hav and their other developments. And they most certainly will get an earlier return here.
I see them selling their shares in solg to BHP.

Chartbuster, if you understood more of the nuances of what's happening at SOLG (and there's no reason why you should), you'd realise it's Newcrest who are in a tricky position, not BHP.
Second, Alpala is Tier 1.
Third, the infrastructure is there, or nearby - water, roads, electricity and, crucially, a deep water port.
I do agree that Equador is not the greatest location on earth, but in recent months there have been significant developments as far as mining is concerned.
By the way, I hold both and am equally excited about GGP. It's just my opinion that New will bow out of Solg and let BHP have first dibs. Alpala is a monster and that's before they've even really started on the rest.

chartbuster, that's one way of looking at it, but it's not the right way.

Richy, have a look at their balance sheet...they needed the cash - badly.

A$2bn to spend. SOLG, GGP, or both?

DBW, I'm sorry to say what's more likely is that they annul the existing options and re-price them at a lower price.
Perhaps that just the cynic in me.

my purchases last week are looking a bit sick. Am I concerned? Not in the least.