Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I think it was Ingo, a few weeks back, said that "they" were going to contact all holders over 10,000 shares. Anyway, my wife received her letter today. I am jealous, I haven't received mine and I have 4 times her shares! My daughter hasn't received hers' either, but she only has 1,000 shares! Mrs Frog has her account with HSBC, as do I, Baby Frog (aged 18) has hers' with HL. Anyway, we have all voted for all the resolutions.
Frog
How can NM issue an RNS after 12th November, which was the date of the Notice of Meeting for the AGM? If he were to, then people who had already voted could, and probably would, cry "foul" as they probably would be unable to reverse their vote if they felt cheated in any way. So as I see it, no news now until the AGM, then loads of it. This is the time to trust NM!
Frog
I think you are all misinterpreting NM's intentions. He is seeking these new powers, eg increasing share capital, issuing shares, increasing directors' pay, etc., in case of need so that he does not have to call an EGM every time he wants to, say, issue some new shares to a third party, ie not the whole lot permitted at one go, or perhaps he might issue them to us, the pi's, as a defence against a low ball takeover. He just wants the powers, but not necessarily to use, at least to their full extent.
Frog
As an ANTO holder since the nineties, I would go along with that. They would be an ideal partner as they have built some big mines, but also operate a feeder railway to other mines as well as their own, and supply water to their own mines and the area around Antofagasta from their desalination plant.
Frog
Re Liisting Requirements
The rules of LSE and TSX apply equally so that the more restrictive rule in either one applies. It's a good thing that we only have two listings, otherwise we wouldn't be able to do anything!
Frog
If BHP and NCM were to join to together in a bid with CGP, then it might be game over. OK CGP is anybody's at the right price, but as BHP and NCM are arch rivals, even enemies as far as copper/gold mine wars go, joining together in a bid is unlikely. So with a diverse book, to quote my friend Q, a bid is a) unlikely and b) would not be successful.
Frog
Having been out for most of the afternoon, then in a meeting (virtual) this evening, I missed all the fun, but just ploughed through 8 pages on here.
This share issue to the Chinese does make the share register more diverse, if at this stage by only a little bit more than before. In my opinion, this does make it less likely that a bid will succeed. However, NM is clever and able to do things that surprise us, so it is a case of "watch this space and something will happen" but probably not what any of us are expecting.
Frog
For Solgold to be taken over, it needs the three largest shareholders, excluding Mather related companies, to join together in a bid. Cornerstone will join with anyone for a price but I can't see NCM and BHP joining together, they are arch rivals. More likely to me, is BHP (with Cornerstone) supported by Mather and his related companies in an agreed takeover. To get NM to agree then it must be an offer that pays the PIs good value such that he can recommend it. I cannot see this happening in the foreseeable future. For the present, therefore, this will be going to production.
Frog
NCM are not likely to sell their 13% to BHP or anyone else. BHP are not likely to sell their 13% to NCM or anyone else. NCM and BHP are not friends; they are arch rivals! BHP have pending options, but they only amount to about 1%. CGP will sell to the highest bidder. NM holds or controls about 20%. BHP and NM and other potential buyers may pick up shares in the market, but I would doubt that would be a great number. Depending on the price, I would doubt if more than 20% of PIs, etc would accept a BHP or NCM offer, most will follow NM, i.e. if an offer is recommended by the board. All in all, I cannot see how a bid will succeed. Obviously it would all depend on the price on offer, but an offer price to be successful will have to be unaffordably high to be acceptable to NM and the majority of shareholders. To me NM has most of the cards.
Frog
My knowledge of JVs, although rather sketchy, is that a major takes over as lead and the minnow only gets the crumbs. I would be very nervous if we went into a JV in case we, the PIs, lose almost everything. I believe NM is nervous about that happening. As I mentioned on Sunday, all our tenements can be developed and financed separately, obviosly the security is the ore in the ground. They can be progressed at their own pace without reference to the other licences. However, again as I mentioned on Sunday, if all the licences are developed and are producing at more or less the same time, I'm talking of say 14 blocks, we would be flooding the market with copper, gold and silver which would depress the prices of the metals. Surely it would better if they could be spread out a bit so that we, and Ecuador, would be earning money well into the next century. This approach would need the agreement of the government of Ecuador, also, of course, as we haven't produced our first wheel barrow of ore concentrate, these ideas are a long way off coming to fruition. I will be pushing up the roses by 2050 at the very latest, so I will not see the long picture.
Frog
We have to develop Alpala inits current time frame otherwise Franco will charge us penalties. I don't know the terms but I'm sure there is a time limit before it starts receiving its royalties.
However that doesn't stop us developing Porvenir at the same time and if it gets to producion first sobeit. I would be happy with that.
Frog
Hi Quady, Happy birthday. At 59 you are so young. I don't post very much on here so you might not think much of my posts; I don't spend all day looking at the board and by the time I come to look at it someone else has said what I was going to. I was a little disappointed about your comments about serious investors the other day as I neither own 1 million shares in Solgold nor have £1 million invested, but I do regard myself as a serious investor! In general, however, I do respect your posts which are usually well argued. So Happy Birthday again and I hope you had agreat day!
Frog
People on here may know that I'm for holding all the way to production and beyond. I had presumed that each licence would be treated in the same way as Alpala and be financed in the same way, especially as all to date are owned by separate subsidiary companies, except that as things move on we may be able to do some cross funding ourselves. However, as mentioned by Viable earlier, with so many tenements to develope and run especially if many of them are tier 1, it may be reasonable to sell one or two of them. The question to consider, not just by Solgold but by the government of Ecuador, is do they wany upto 14 mines, perhaps more, producing copper, as well as gold and silver, at the same time? The longer the copper lasts the better it is for Ecuador also the price won't become depressed due to over supply. A shortage will keep the price up. NM will have to consider this with the government of Ecuador if it shows sign of becoming an issue, in which case I am sure they will allow Solgold to delay bringing some tenements to production.
Frog
Of course we can bring all our licences to production ourselves. I agree with Smickster that Franco will probably not be able to finance bringing all of them to production at the same time, but spread out they might, alternatively there are others out there who can provide the cash, either by streaming or a loan. I am sure the big boys employ contractors to build their mines and I see no reason why we should not do that ourselves. It is probably not a good idea for all our mines to be at full production at the same time as the market will become flooded with copper, gold and silver and the prices will go down! Start with Blanca and Alpala, then Porvenir, Hueca then Rio Armarillo followed by some of the other licences. I guess this what NM is planning anyway .
Frog
I have been reading all the posts so far this weekend and I hope we don't have the nastiness that happened last week. It was the first time I filtered someone!
I know NM has always said that he does not want a JV and I believe it is the correct way to go. However, I do accept that in certain circumstances he might choose the JV route, on the right terms of course.
Frog
As I understand it, if a bidder makes a formal offer to NM and he rejects it, then if they want to they can either improve it or go hostile. It is that simple.
With regard to Solgold's offer for Cornerstone, NM's hands were tied as he had no cash to offer as the Franco money is tied to Alpala and the placing money is earmarked for proving other licences. To provide cash for the offer, NM would have needed another placing which would probably be unpopular and therefore likely to fall.
Frog