Member Info for Bozi

Jerry - how do you feel towards Newcrest now? You seemed happy to have them on board at GGP but I'm guessing that's changed recently after their stunt there?

Fortissimo - you are welcome to ignore me. Just know that when you make an argument that is open to scrutiny then I will do just that.

I'm well aware of the two royalty deals. Only a minority portion of these can be bought back and within a set timeframe. We must be half-way through the Franco buy-back period if it's similar to Osisko's.

You're right on one thing. It's time to move on. Just be realistic in your reasoning because you do make some compelling arguments. My snipey nature as you put it is simply giving you a bit of what you put on others back to you. Other posters will note I don't snipe at them

Fort @13:50

55p would be the absolute maximum that I think Maxit would be able to extract and if I'm being honest I think their rather public riposte has made that job nigh on impossible from the big two shareholders. They will not appreciate being told where to go in the press.

55p is going to be in the region of £1.5bn based on post merger fully diluted share capital. The only companies that will spend that amount will be those who can finance the initial Capex from existing cash resources. Anyone else who needs to borrow simply won't pay 55p/share.

Your point about Norges/BlackRock et al rejecting an offer at that level is an interesting one. It's not inconceivable to assume that certain parties may reject offers at various levels given the return on their investment that represents.

That sounds like a diverse book in action to me.

The suggestion that SOLG can just carry on doing royalty deals is another Fortissimo brain fart I'm afraid. Each royalty deal is a drag on future profits as you know. Why would SOLG continue to keep shooting itself in the foot like that. It makes zero sense as what happens is a tier 1 asset ends up with a very marginal return on investment due to the cost of debt and the project then relies on very high metal prices.

Every royalty deal SOLG does now is SOLG ushering potential buyers towards Filo, Solaris etc etc. It's self sabotage on a ridiculous scale.

Be very careful what you wish for folks,and think this through before you recommend Fort's posts. He's creative, eloquent and articulate but by golly he's also a little naive.

Fort - re your 8:57 post

Why would SolGold distribute close to the full sale consideration upon an exit of Cascabel only to then go and raise funds for exploration?

That is possibly one of the most absurd suggestions I've heard this year, if not ever, and I say that in all seriousness given we've seen a few things differently of late.

If you're going to give regular commentary for the benefit of others, and some of it clearly is of benefit to others, then you'd acknowledge that SolGold could be expected to distribute somewhere between 30-50% of the consideration to shareholders - basically a fairly standard dividend policy. Personal opinion is they'd land close to 50% because the optics of the lower end of the scale don't look fantastic but you can bet your last shilling that the company would retain 50% of the cash paid.

The challenge then for management, as a cash rich junior explorer again, is to control treasury tightly but ensuring that Porvenir gets an allocation to bring that to PFS, DFS etc and have a pot from which the 4 subsidiaries can all operate on the highest priority projects.

I'd imagine budget could be in the region of $100m per year with many work streams in parallel so on the assumption Cascabel is sold for $400m we have a couple of years runway before we then have to process the next cab off the rank.

Well you have all of us fooled Fort.

You said there would be a royalty, and there was, but not with a tier 1 company, with Maxit's mates, likely bungled in through the back door.

With this and today's news, can we assume that Darryl was leading the raise which would let BHP get a foot in the door at a cheap price. Mather and co stop it and then with CGP entering the fray turn to your royalty deal. Darryl sees this as the final stra and walks out in disgust? Plausible to me.

The problem is Fort, you got the royalty right but it was a needle in a rather large haystack of Fort calls and predictions. I fully respect your commitment to dine out on this win.

Bit rich Fort, calling someone green.

At the end of the day you don't know how BlackRock works.

Haha Addicknt. You nailed fiduciary at this early hour and then made then slipped in the very next line.

I hope you're right. I really do.

My thinking on the fiduciary duty is that stops when the merger completes. CGP management will point to a successful exit at a premium into a more liquid share that can be easily traded via a major market. I don't see how CGP management has that responsibility towards us. That rests with SOLG management and we've seen in recent weeks just how willing and able they are to deliver shareholder value for us.

Look at the facts. Strategic review on a tier 1 asset and look at the SP reaction. I think you said it yourself at the time Add.

I hope. I really do.

That's all you've got Fort. Noront, Noront and Noront.

They have board and management harmony and that allows them to defend any unwelcome interest.

We, by comparison, are in absolute chaos at management level. CEO and CFO not driving company and financing strategy. Major investors whinging at every turn.

SolGold is the turkey a fortnight before Christmas and you all seem pleased about this.

Addicknt - they've wanted an exit for years. They've had to pivot from their own company into SOLG to make that happen and took a premium for it.

I've seen nothing to suggest they're willing to fight it out for a fair price. Have you? Irwin himself has been talking about getting out and into new opportunities.

They're virtually distressed and will sell to the first bidder.

What's your view to back up your logic?

I take you dumped the First Tin shares you already bought Redknight?

Yes I do remember you saying you'd bought some.

Spot on mister meister. That's the crux. It's a shambles.

But the rampers will tell us it's good news.

What is the market telling us in first half hours trading? Ahhh.

Course he is Quady. Like Fortissimo, mentions every eventuality in his posts and then as soon as something comes to fruition he claims the win.

The board room and management chaos here is no good thing. CGP now in the driving seat which is frankly frightening.

We're all going to be selling our pound coins for 40p and some will be happy about it. They'll have conveniently forgotten about it when whoever buys it is raking in hundreds of millions of pounds down a year down the line.

Redknight - you know this how?

Plenty have called out your "research" on here. Maybe take the message from them.

You think a company that can't retain a CFO and has a CEO that can't stay in position for as long as it took to appoint him is going to end up with a result of the type you have been advocating (80-100p)?

No chance. No chance in hell.

We're not coming to the sharp end of a few years of manipulation by our major shareholders. They can't agree on anything with our board and management, to the extent we have a revolving door at SolGold towers.

40p, max, it pains me to say.

Bad news this.

A shambles at board and management level at SOLG. BHP no doubt wading in and CGP exploiting the situation. Wouldn't surprise me if they're stitching Mather up personally.

40p is the maximum we're getting from this now. It'll likely be less.

Fort - it's the cost of the debt. Work out what 0.6% of metal sales from the project could amount to.

I suspect they'd much rather have been able to maintain their 13% stake of the post merger issued share capital via equity.

Something about having their cake and eating it.

You're right Smickster. A compromise would be fairest and I believe the same about cheap equity being the preferred finance route, hence why I was so worried about it.

Yes, we are reading between the lines, but would I be being unreasonable or illogical if I said I don't think there's been any conversations(at least of a hostile nature), because had there been, SolGold could have told the market that it was in discussions which would have sparked new interest in the stock and gave us a platform for raising money at a higher price if we needed it?

The opposite could also be true. I accept that.

You won't find me arguing with that Smickster.

What would your view be though if you held stock in a major miner on the look out for assets?

BBG - that may well be the case but I think you can be assured that NCMs opinion won't change with the CEO, and why should it?

That's not a bad mantra to live by Stackhigh but it's worth considering how SOLG are going to raise capital going forwards, assuming BHP are as disenchanted as Sandeep Biswas is.

Alienating those (relatively) early investors can work two ways. It either stifles our equity funding potential going forwards, which some would say is the plan anyway, or it gives their peers confidence to join the register, be that in an investment capacity or with aims to challenge the apple cart somewhere down the road.

It is now time to ask ourselves how much longer this can all go on for. One royalty deal was plucky. The second, particularly in the face of what happened in the aftermath of the 2020 AGM, will either prove a masterstroke or a hindrance if the strategic review doesn't deliver the value we all hope for.

Stackhigh- make no mistake, this BB has been a bit premature pushing for a sale.

However, all signs now point to this. SOLG has gone back on it's olive branch of Q1 2021 where it promised to work collaboratively with it's major shareholders by doing this CGP/maxit brokered royalty. They've now cut ties with their main supporters over the last 5 years.

SolGold has now taken it's gloves off. Come and get us if you want us.