The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Fomad - a JV with Jiangxi is a fantastic outcome. Will BHP types be happy? No. BHP types can make a suitable offer or bugger off
Fomad - I believe a successful bid for Solg (should it take place) will be in excess of the NPV figure of 3,2B. So 100p +
So the share price increased 30% during the week prior to the effective date of the technical report, being 31 December 23.
Coincidence? Insider buying?
Lets walk back to mid 20's before any rns arrives
Yes, the last 24 days didnt deliver much:
- the Ecuadorian Government signed off on our $3,1B commitment to fund Cascabel
- we delivered a reduced capex bill.
Can you calculate the value of 1,436,000 units based on a 120p takeover?
Pleb
We don't need to sell ENSA.
We just need to create some form of non dilutive funding for ENSA that demonstrates we are going to develop it ourselves. Its clear we can achieve this through offtakes, NSR and debt financing, and all from one source being Jiangxi.
Once this has been announced, the SP will fly and you can give the Chinese another 5% in Solgold at 45p a share which will keep the lights on at HQ for several more years whilst we sure up the regional portfolio and define a plan for Porvenir.
I'd love for this to play out a few more years in order to receive maximum bang (200p +) but I doubt any major would allow us to remain in such a dominating position.
Last weeks commitment to fund 3,2B spells a deal has been done so this will be announced obviously soon.
SP is set to fly
In the absence of a bid and without diluting shareholders, I believe either scenario below will help us achieve a quick ascent to a £1b market cap.
1. A 'JV' covering ENSA + Carnegie Ridge which includes commitment to fund capex requirement at Cascabel, and allows Solg to retain ownership/control.
2. Porvenir sale
Based on what we heard last week at PDAC, scenario 1 above is already lined up and about to be announced.
The question is, do we get to retain Porvenir, will it be sold or included as part of a wider deal that involves scenario 1.
Newcrest was trying to sell Telfer for years. Its a dud asset - no one wants it. Tom will need to accept a write down if they sell it.
Eloro - I actually agree with you.
Last week we announced a funding commitment for ENSA's Cascabel.
If this 'package' (to be announced shortly) doesn't involve BHP/Newmont, they will be moving their backsides into M&A mode as we speak.
BHP has wanted us to drown in dilutive financing since they arrive however that has blown up in their face.
Henry = Muppet
Mather = King
Solgold has the resource and concessions to replicate Fortescue's journey - even supersede it!
I truly believe that Mike Henry and Tom Palmer's position as CEO's will become untenable if they do not secure control of Solgold.
Newcrest had a couple of nice assets but Tier 1 copper is what Newmont wanted, and I am certain that one of the MAIN reasons they acquired Newcrest was for their interest in Solgold. Like BHP, they've watered down any discussions about Solgold and Ecuador - you won't see either group mention the words.
Tom seems like a smart guy however Mike Henry on the other hand is a muppet in a suit. He is more an administrator than a visionary.
Will the West sit back and watch the East pick up an entire mining jurisdiction that will offer so much prosperity and wealth.
We have played a blinder and last week Solgold confirmed that more news is on the way.
Exciting weeks ahead
I like Paul Harris.
You mean 140p!!
Anyone wanting this is going to fight for it - £5B sounds about right
Agree Orthen.
ToS1963 -
You have completely misunderstood my point.
Majors do not want Governments to have ownership of their projects. Ask any major miner. I have asked two in three days and they have both confirmed this.
Ask Rio whether they are happy with the Mongolian Government's 34% participation and ownership of Oyu Tolgoi.
That has been a nightmare.
It will not be the case for us as Cascabel or Solgold will be sold and we will benefit from that event
Agree Adieuk however I am not concerned if the SP moves much today.
Interesting Q is, when will the signing in Ecuador take place because between now and the signing date, we can potentially expect corporate activity from anyone not wanting the government involved!
How would the SP react on Monday if say BHP releases an offer this weekend
Novice - agree
Addi - I will look him up. Sounds like a character
Question - could it be that Mr Liu is incentivised to define a deal with Jiangxi ie. he will be remunerated based on a % of the total amount of capital contributed by Jiangxi
Tesla1 -
I'm 39, self-employed, have no debt, and I invoiced €740k last year.
I have 1,436,000 shares more than you, the average is below todays SP.
Come over to our telegram group, i will show you my tax return and account details.
I didn't say first bid will be 100p
I said in order to achieve 100p, you need to accept a lower bid in order to start the auction process.
If we crawl back to 20-30p by default next few weeks, first bid will come in at 100% premium.
NO ONE IS VALUING OUR COMPANY BASED ON OUR MARKET CAP - THEY ARE VALUING US BASED ON OUR NPV.
This has been proven multiple times:
1. through previous nsr funding
2. capital commitment of 3,2b signed with ecaudor. 3,2b is the exact figure of our NPV in the current co presentation
Addi
I dont agree that we are "Trying to negotiate from a position of weakness"
What is weak about Solgold?
We control significant assets and have just coordinated a strategic review. We know what everyone is willing to potentially value us at, and who is interested.
This is about starting a process which you dictate.
By accepting the first bid which is subject to not receiving superior bids inside 30 days, Solgold would be highly confident that other bids will arrive.
If 40-60p arrives as first bid, I doubt many retail shareholders will be upset if we accept that bid.
this is how Scott manages our expectations (60p is great considering where we are, lets accept it) and then pushes any interested parties into an auction process. FOMO then kicks in