Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
Commenting on the Agreement with BHP, SolGold CEO Mr Nick Mather said: "SolGold is pleased to have entered this agreement with BHP. We believe that the Alpala project is one of the five best undeveloped copper projects in the world. SolGold is intent on taking an aggressive path to the development of this exciting project and BHP’s investment is welcome.
The strong premium paid and the US$59.2m in funds raised means we can get on with the task of getting to feasibility. SolGold believes that the terms of BHP's investment are favourable to SolGold in the context and will allow SolGold to continue to deliver value to its shareholders."
Under the share subscription agreement, BHP has the right to nominate one director to the SolGold board. BHP also has anti-dilution rights for a two year period to allow it to preserve its shareholding at 10 per cent.
Subject to certain exceptions, BHP has agreed not to acquire further shares in SolGold for a period of two years without SolGold’s consent.
For a period of two years, BHP has agreed to support proposed change of control transactions relating to, and capital raising up to a limit by SolGold, provided these
https://www.asx.com.au/asxpdf/20181016/pdf/43z8wppkrx7b09.pdf
Well had to do a top up at this price. Again!
Afternoon Shipright.
If I was looking for something like that I would look at a large general Investment Trust. Spreads the risk, can often brought at a discount to assets too. Yes will fall if there is a wider market downturn but are usually quite steady.
Either that a a manufacturer of tea towels, business looks like it’s going to be good!
As always Imho DYOR best Aq
What if BHP bid for Newcrest? This could be a big risk. They would gain block caving expertise and Newcrest’s 14% SolGold shareholding thus gaining a 20% stake and presumably a seat on the board. Always thought a deal like this would be too big but with the mergers in the sector right now maybe not. Any thoughts. GLA
Always worth a listen.
Rick Rule of Sprott Global “High Quality Deposits, Almost Irrespective of Commodity–Will Be Taken Out This Cycle”
https://www.youtube.com/watch?v=TPgwpxyurl8&feature=youtu.be
A premium is being offered over the 2019 copper price.
http://www.kitco.com/news/2018-10-01/UPDATE-1-Aurubis-to-offer-a-96-tonne-copper-premium-for-2019.html
Looks like the start of the copper shortage imho.
Whoever takes this to production I thought for fun I would try working out possible future dividends per share.
Happy to have figures corrected or point out what I have missed.
At 40MT per year at 0.6% Cu Ed per ton= 240,000 tons
Ave cost to extract of £3,051 per ton
Copper price £4,769 per ton
= £1,718 gross profit per ton
£412,320,000 or 24.25p per share per year assuming 1.7bn shares
Less admin and other costs.
Probably I have missed something, But worth thinking about if it did go to production and still a shareholder
Good weekend all, AQ