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I have difficulty understanding why a company, BHP, Chinese related, etc., would want to spend enough money to develop Cascabel and enough to keep a lot of posters on here happy by starting a bidding war. Surely, they would want Solgold to obtain the finance and build the mine before making a move. To me a bid now is likely to be low and not likely to result in a bidding war. I would be happy to be proved wrong, so I will just have to wait patiently to see what happens. Of course, I might be dead before anything meaningful does happen to the share price!
Frog
I have not contributed for some time.
I have tended to be in the “this will go to production” camp with the proviso that it might be sold along the way. Unfortunately, there has been rather a lot of procrastination along the way and currently we are getting nowhere fast with the share price recognising this.
As everything has stopped pending the results of the strategic review, we can only wait to see what it contains. My view is that we need to start, subject to the receipt of the necessary extraction licences, open cut mining of the near surface deposits in the Cascabel area which would provide income towards building the main block cave mine, i.e. it would improve Solgold’s credit worthiness such that lenders would be more willing to provide finance than is, perhaps, the case at present. Also, moving the mine to production might add interest or stimulation to companies who might be looking at Solgold but not been going any further.
I would also like to see Porvenir taken forward as, potentially, that would be another source of finance for Cascabel.
Unfortunately, everything has stopped pending the result of the strategic review so that we need to see what the company’s view of the way forward is. However, I don’t believe sitting around waiting for someone to make a bid is an option!
Frog
Quite right Shipright, but I will be dead by 2050, if not sooner, but I do worry for my daughter who should last to the end of the century! I accept that the world needs copper and lots of it, hence the reason why I am invested in Solgold. However this is a Solgold board not a global warming one.
Frog
The share price is only 16p. That means there is little demand for or interest in SOLG shares because the ‘market’ does not believe that anyone is about to bid for the company. This does not mean that a bid won’t happen sometime in the future, just that one is not imminent. The ‘market’s’ view is a good indicator of such things.
Frog
Obviously Warren Irwin and co by refusing NM’s bid for CGP rejected the opportunity to monetise their shareholders simply by putting them in a position to sell their SOLG shares. Now, of course, it is desperation stakes. It would not surprise me if CGP made the approach to SOLG. However, we will never know.
As the directors of CGP were unable to sell their company even with big “For Sale” notices posted, why do they think they will fare any better trying to sell the enlarged SOLG?
We will see, but I have to say that I am not convinced that they will be successful, and, if they are, then the price realised is anything above about 30p. I hope that I am wrong with this prediction!
Frog
People, please, please, please think what you are doing. If you put the "For Sale" notices up now, we sell Solgold cheap!! We have been sitting on our piles of Solgold shares for a long time now, some longer than others. We should all be saying Alpala is going to production and be supporting the Solgold board with that which is their stated plan. Now we are funded, at least we can carry on towards that goal, If we are taken out on the way at least it should be for a decent price. If we stop building the mine and exploring we are not adding value to our share holdings, therefore we are basically saying "We are having a closing down sale". Is that really want people want? Do we really want to Solgold's assets for next to nothing? Let's build the mine, and at some of our other sites, and if someone wants us let them pay a decent amount for us! The share price will grow and if people want to leave on the way that is up to them, but they should get a decent price. Remember you nay sayers, the share price has been to 40p several times over the years so if you really wanted to take your profit you should have done so then!
Frog
After the announced merger/take over with/of CGP and the presentation I think we need to look at things in the cool light of day. What has changed?
You might say everything has changed now, but I don't think that is true. I think we are still proceeding to production. If we say that the 'For Sale' signs are up, then we are saying we are trying to sell Solgold cheap, i.e. it is a forced sale. I don't think any of us want that. Things might have changed to the extent that all options are now open, but I think we are still working to taking Apala to production and should someone come along with an offer we can't refuse, so much the better.
I am presuming that CGP allowed the merger/take over to go ahead now is probably that they no longer had to deal with Nick Mather, but I guess that , for a long time that joining up with Solgold was the one act that would give CGP potentially decent value, and they knew it. Of course the CGP shareholders may turn the deal down and then what happens?
Frog
Thank you, RK, for that info. IMO BHP has probably more available cash than most and therefore could mount an offer which would possibly have a large cash element and fewer BHP shares. Other possible bidders may not be so cash rich, even miners may not be so, primarily because of size but also focus, in which case they may offer a 100% share offer. Of course the problem with that is if shareholders come to sell, either because their share custodian doesn’t permit non LSE listed shares, or that they want/need to realise their new shareholding, then they may well find that the new company’s shares have halved in value.
As I see it, SOLG might well be pushed into a lowball sale because they are unable to raise suitable finance. This is my main worry at this time.
Frog
I think what I am saying is that there are not many companies out there that have vast amounts of cash available at the present time to make a bid for Solgold even bearing in mind the low share price. Also, I accept the diverse book argument, but the current situation, low share price and the difficult and expensive borrowing dilemma, will make large share holders nervous and more likely to accept a lowball offer than they might normally do so.
I believe that it is very much up to Darrel and co to pull something out the bag to prove me wrong. I hope they do!
Frog
First of all, I have to say that I have not read the full string on this subject.
I was very disappointed that funding was not arranged earlier in the year or late last year because it would have been available relatively cheaply and could have financed Alpala to Dfs and the exploration programme. Now possible finance will be expensive if it is available at all.
I fully accept that it is easy to make such a comment after the event. My view is that if all the ducks line up, one should “go for it” rather than put it off for a better deal in the future. Things in the world change so quickly these days and by not reacting at the time we are now in a very difficult position. We are desperate for additional funding, but we don’t want to pay too much for it, but in our current situation we have laid ourselves open to a low bid from whoever, but only a company with deep pockets would be able to bid so a bidding war is not likely.
I apologise for being so negative, but this is how I feel at present . I do hope Darrel and the new CFO can pull something out of the bag and prove me wrong.
Frog
Let us consider where we are:
We have one side that believes that Solgold is going to production. This is the default position as it is the one that has been reiterated by the company many times. The main protagonist of this view on this board is Quady, but there are others who quietly support this view.
The other and more vociferous side believes that the company will be sold tomorrow/next week/next month/soon. Since I have been following this board in 2018, this has been a continuing view of many.
Of course, there are those sitting in the middle who reasonably consider the facts as they appear. I would put Bozi in that camp, although he may disagree with my opinion of his position. I always respect his postings.
I have to say that I am disappointed at the recent developments at the company. The lack of a fund raise seems to me to be a serious mistake on their part. Way back in January, if not before, it was clear that inflation would cause an increase in the cost of any borrowing. Really and truly, we should have gone for it then: now any borrowing will be alarmingly expensive, whatever form it may take. You may say that it is easy to make such a statement with hindsight, but the signs were clear just that the actual amount of the rise in interest rates might not have been. It is disappointing that the failed raise, if that is what it was, resulted in the departure of Ingo and Ayton Saridas. We don’t, of course, know whether they went of their own accord, or were pushed. It is a shame that Ayton lasted such a short time and I would have hoped she could have survived at least one disappointment if that was the cause of her departure.
In any event, I am sure Solgold will recover and march forward to production, unless, of course, we are bought out in the meantime. One thing I am sure of is if that does happen, it will be when we are least expecting it, and, probably from the least expected source!
Frog
It is all very well rubbishing the diverse book theory, which of course means that there are several large blocks of shares in different hands that will make putting together a takeover more difficult. How much difference that would make in a takeover scenario is another matter. It could, in fact, force up the offer price as a bidder tries to get sufficient shareholders on board.
Frog
My buys of 15000 and 5000 today are also recorded as sales.
This is my first post on this board. I have been a holder since June 2020 and have been adding in dribs and drabs since then.
Frog
First of all, RK I would like to thank you for your efforts today and previously for me and other PIs. It is sad that so many complain. As for RNS s they do seem to come through regularly, but, of course, it is like sitting watching paint dry. We are sitting hear gagging for information, while people are working their socks off in very difficult conditions trying to fulfill our dreams. I am afraid we still have to be patient and not do anything rash, like sell up, before the news we are waiting for drops.
Frog