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Has just occured to me. This announcement says the company has $24m in cash. At year end it had $13m. It then borrowed $25m. The statement implies a very high cash burn and suggests it would have run out of cash had it not borrowed the money. I'm posting this from memory , so it may be wrong, but I don't think it is. If I'm correct it's pretty worrying, although I can only assume the very high burn went on commitment fees and advisors expenses.

earthling, yup, I agree - he really has played a blinder so far. And if he wants to achieve legendary, super-star status, he'll know when to sell.

Degsie, I agree and I know the figures. But the fact remains, it's all about financing - the ability to get it and its structure.
I really hope he can pull the rabbit out the hat, because this is a project that deserves to go ahead.
Mind you, I'll never forgive either him or Cannacord for their disastrous mistake.

KB, has he? His net worth may be at those levels, but it's still in paper, not cash. Until you've got the money in the bank, it's not the same thing.
Mind you, I can certainly see why someone would want to be like the Rineharts...who wouldn't?!
Personally, I don't like investing in empire builders, I like those who know when to take the cash.

degsie, he's right about the 'disconnect', but only if the stuff can be got out of the ground. And to do that he needs the money. Until, he's got it, the market will not buy into the story.
Sorry, but as I said earlier, I simply can't see a re-rate without it. Of course, this is only my opinion.

Lotto, as BBG says, they don't need us and in any event, I just can't see NM having his life being dictated by two mining giants.
Think about it: someone comes along an offers a deal that will net you £100 -150m, or maybe even more, which gives the opportunity to secure your families future for generations to come as well as being able to enjoy what remains of your healthy life, which in his case is only 10 or so years (it goes very quickly at our age)
Surely, this is a bit of a no-brainer, isn't it?

newboy, yes, I don't have any regrets, particularly as I sold half at 74p...pity I didn't sell the lot at that price.
He talks about 'closing the value gap' soon. Well, that will ONLY happen once the financing is in place and until it's done, the sp will continue to languish. In other words, I can't see the market suddenly re-rating the share in the absence of finance. Indeed, until the full details emerge, existing shareholders have no idea of how much of the pot will remain theirs.
I remain wholly convinced this will come good, but the timeline doesn't tell me I should be re-investing for a while yet.

Yes, I agree with you, but I'm not sure we'll be allowed to do so.
If BHP and or Newcrest do bid, they'll want the whole thing, as they'll see the remaining tenements as their 'upside' in the deal. NM will argue for value, and some will be paid, but by no means all of it.
I just hope he doesn't get too greedy, although he's astute enough not to .

Sorry, one final thing...thanks for posting Schlemiel...a very good find.

By the way, I think the article also points to the realities of life with regards to actually developing the mine. It is a simple fact that SOLG will not be able to do it and anyone still harbouring the belief that NM intends to see it into production should think again.

I love the way he talks about the asset as if SOLG as a corporate entity is irrelevant. In other words, he's making the assumption that it's an absolute given that SOLG will be taken out (which is what we also believe) and it's only a question of when, not if and also whether it's a j.v with BHP, or not.

"anyone know why Nick cancelled?"
Yes, he's busy explaining to BHP that the price is five quid.

Personally, I appreciate you posting L2.
It has no bearing upon my decision making and is irrelevant to the longer term, but is interesting, none the less.
Thanks.

Not yet.

Qalibashi, I assume you realise that tracker funds don't invest based upon share price? It's market cap that determines the decision.

Well spotted, Dallas.

I'm really sorry to say I take no comfort from this article.
Companies normally give interviews for one of two reasons; to give a covert message that something will be announced soon or, to overtly announce their needs in the hope it will attract someones interest (Rothschilds are particularly guilty of doing this). My fear is that this is a case of the latter.
Sanderson is a respected commentator on the lithium industry and people read his stuff. But having said that, it's almost beyond the imagination to assume that everyone who may be interested/suitable has not already been contacted.
I really hope I'm wrong, but this does feel rather like desperation.
On a much brighter note, I see our wonderful MPs are pushing for an earlier cessation to petrol/diesel cars. That's all fine and dandy, but if they get their way, someone has to really press the button on the roll-out of charging points.

I wonder if BHP hope to end up in a position whereby they regard SOLG as their out-sourced exploration arm.
As we know, all miners massively reduced their own in-house capabilities and are, to a large extent, relying on companies like ours to do it for them. What better way for them to achieve this than by making the investment they've done here?
Although they are far from having it their own way, they are now obviously front-runners for our developments. So, post-PEA, they buy Cascabel, we get a huge divi, and, with cash in the bank, we move on to the next phase of discovery...with BHP's full support and continued backing.
This works well for us and gives BHP the capabilities of exploration without having to fund it themselves.
Who knows, we could then venture elsewhere in the world acting as their proxy exploration team.
By the way, I can't see a situation whereby nothing happens until post-BFS. A mining company doesn't need one; indeed, because of the different way in which it would be financed, it would be largely irrelevant.

schlemiel, indeed and you're right, they must have spent money on political risk consultants and engaged in discussions with politicians.
But, as we all know, politicians are a fickle and generally pretty useless bunch of barstewards and should never be trusted.
You'd also have thought that a poor country like Ecuador would have the begging bowl out for inward investment and job creation, but the mining industry is littered with failed businesses who jumped to that conclusion.
By the way, I don't want to over-egg the pudding on this issue, it's just that I think all investors should think carefully about risk and keep an eye on it. There are far too many private investors, and many on these boards, who, due to their inability to accept it exists, choose to ignore it and end up losing their shirts.

schlemiel, indeed and you're right, they must have spent money on political risk consultants and engaged in discussions with politicians.
But, as we all know, politicians are a fickle and generally pretty useless bunch of barstewards and should never be trusted.
You'd also have thought that a poor country like Ecuador would have the begging bowl out for inward investment and job creation, but the mining industry is littered with failed businesses who jumped to that conclusion.
By the way, I don't want to over-egg the pudding on this issue, it's just that I think all investors should think carefully about risk and keep an eye on it. There are far too many private investors, and many on these boards, who, due to their inability to accept it exists, choose to ignore it and end up losing their shirts.