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Is it at all possible that seeing the share price running away forced the Chinese into the low offer simply to keep a lid on the price ?

Fort I agree

Keep it under control so the next bid looks like it’s at a premium.

Last one blew up in their faces ….with the potential news flow backing up this could easily happen again ….

AGM 30th …. Get your votes behind the BOD

There’s a reason the market is currently valuing this 10%+ what the Chinese offered

This will go again soon

As soon as the market knows something else we don’t

Just been sent voting form for AGM ….

Cont …

To meet the copper concentrate requirements for the aforementioned smelting capacity, Zijin Mining, Luoyang Molybdenum, and Minmetals Resources would need to collaborate, let alone Jiangxi Copper. Therefore, the company needs to purchase large quantities of copper concentrate from both domestic and international sources, making its profitability far less competitive than its peers.

Related data shows that over the past five years, the gross profit margin of Jiangxi Copper's largest main product, cathode copper, has consistently fluctuated between 3% and 4%, even falling below 3% in some years.

Especially in 2025, with the continuous decline in TC/RC spot prices, and spot quotes even falling into significant negative values, the operational pressure on copper smelting companies facing insufficient raw material supply further intensified.

Against this backdrop, Jiangxi Copper has begun to strive for breakthroughs in its resource endeavors.

On the one hand, it is tapping into internal potential, promoting resource upgrading and deep exploration at existing producing mines; on the other hand, it is seeking strategic investment opportunities externally.

This proposed takeover bid for all of Sol Gold's equity is a significant step in Jiangxi Copper's external resource expansion.

While Jiangxi Copper has not disclosed Sol Gold's potential production capacity to date, according to industry sources such as Asian Metal and Mysteel, Sol Gold is accelerating the Cascabel copper-gold project, planning to start early-stage engineering in 2026 and achieve initial production in 2028.

According to the 2024 pre-feasibility study report, the mine is expected to have an operating cycle of up to 28 years, with an average annual copper production of 123,000 tons, gold of 277,000 ounces, and silver of 794,000 ounces. At peak production, annual copper production is even expected to exceed 216,000 tons.

These projected production figures are already quite considerable within the industry. Western Mining's Yulong Copper Mine, even after the completion of its third phase of construction, will only produce 180,000-200,000 tons of copper annually. Jiangxi Copper's core mine, Dexing Copper Mine, is projected to produce only 155,000 tons of copper in 2024.

If Jiangxi Copper successfully acquires all of Sol Gold's shares, the company's long-term copper production could potentially double. This would likely alleviate the company's low raw material self-sufficiency rate and insufficient profitability in cathode copper, significantly enhancing its overall industry position.

Furthermore, besides its stake in Sol Gold, Jiangxi Copper also indirectly holds an 18.47% stake in Canadian miner First Quantum Mining, maintaining its position as the largest shareholder.

First Quantum is one of the world's top ten copper producers. Whether Jiangxi Copper will further increase its stake in First Quantum Mining

Cont…..

Following the aforementioned takeover offer, SolGold's share price surged, rising from 20.1 pence on November 21st to 30.77 pence on November 28th.

This means that Jiangxi Copper's potential acquisition costs may increase. However, whether a formal takeover offer will be launched and whether the offer price will be adjusted upwards may not be known until the end of this month.

As of the time of the announcement, both of Jiangxi Copper's non-binding cash offers have been rejected by SolGold's board of directors, and there is uncertainty as to whether the company will subsequently make a formal offer.

Currently, Jiangxi Copper and SolGold's directors and related stakeholders may be engaged in a power struggle.

"According to the UK's Code on Takeovers and Mergers, the company reserves the right to offer other forms of consideration or different combinations of consideration, and reserves the right to make offers to the target company on terms no more favorable than those set forth in the potential acquisition in certain common circumstances," Jiangxi Copper stated.

According to the Takeovers Code, Jiangxi Copper should issue a formal offer announcement for the aforementioned acquisition or a clear announcement regarding the abandonment of the acquisition before 1:00 AM Beijing time on December 27th.

Seeking a Breakthrough in Resources

This acquisition is another step by Jiangxi Copper in seeking a breakthrough in resources.

In 2023 and 2024, Jiangxi Copper's self-produced copper concentrate containing copper reached 202,000 tons and 199,700 tons respectively. All of this copper production comes from the company's five self-owned mines, including the Dexing Copper Mine and Yongping Copper Mine.

A production of 200,000 tons/year is not insignificant. Although it lags significantly behind leading companies like Zijin Mining in the first tier, it firmly places it among the top-tier second tier of Chinese copper companies.

However, Jiangxi Copper's copper smelting capacity is enormous. In 2024, its cathode copper smelting capacity reached 2.3 million tons/year, and its Guixi Smelter is the world's largest single copper smelter in terms of smelting scale.

Cont ….

The main Alpala deposit of the aforementioned project currently possesses proven, probable, and inferred resources, including 12.2 million tons of copper, 30.5 million ounces of gold, and 102.3 million ounces of silver. Meanwhile, the Cascabel project completed its pre-feasibility study in 2024, and Sol Gold also has dozens of exploration projects at different stages in Ecuador and other locations.

Prior to this, Jiangxi Copper had already acquired 209 million shares of Sol Gold, and in March of this year, it acquired another 157 million shares for US$18 million.

At that time, Jiangxi Copper stated, "Through this transaction, the company will become the largest single shareholder of Sol Gold, and subject to an agreement between the company and Sol Gold, the company will provide technical consulting services for Sol Gold's Cascabel project in Ecuador."

As of December 1, Jiangxi Copper held a total of 370 million shares of Sol Gold, representing approximately 12.19% of its issued shares.

Besides Jiangxi Copper, SolGold also has major shareholders such as BHP Billiton and Newcrest.

Historical announcements show that as of the end of June 2024, BHP Billiton Holdings Limited and Newcrest International Pty Ltd held 310 million and 309 million shares respectively, each representing approximately 10.3% of the company's shares. The remaining shares were held by other shareholders.

On November 23 and November 28, Jiangxi Copper submitted two non-binding cash offers to SolGold's board of directors. The latest non-binding cash offer proposes to acquire all shares of the target company at a price of 26 pence per share.

There you go Med

Jiangxi Copper to Acquire All Stake in SolGold

December 1, 2025, 18:29 21st Century Business Herald 21 Finance APP Dong Peng

21st Century Business Herald Reporter Dong Peng

On the morning of December 1st, Jiangxi Copper, with a market capitalization exceeding 100 billion yuan, hit its daily limit.

An announcement the previous evening revealed that on November 23rd and 28th, the company submitted two non-binding cash offers to London Stock Exchange-listed SolGold Plc (hereinafter referred to as "SolGold"). The latest non-binding cash offer proposes to acquire all shares of the target company at a price of 26 pence per share.

SolGold's core asset is 100% ownership of the Cascabel project in Ecuador, whose mine is considered to have the potential to become a top copper-gold mine in South America.

Previously, Jiangxi Copper had already acquired a 12.19% stake in SolGold, becoming its single largest shareholder. Other major shareholders include overseas giants such as BHP Billiton and Newcrest. As of the date of the announcement, both of the aforementioned non-binding cash offers have been rejected by the SolGold board.

However, a reporter from 21st Century Business Herald learned from sources at Jiangxi Copper that similar situations are common in overseas markets and will not have a substantial impact on potential takeover bids. The company is currently still communicating with the SolGold board and relevant major shareholders.

According to the UK's Code on City Takeovers and Mergers, Jiangxi Copper should issue a formal offer announcement for the aforementioned acquisition no later than 1:00 AM on December 27th, or issue a clear announcement of abandoning the acquisition before that time.

Considering Jiangxi Copper's current considerable copper smelting capacity, if the aforementioned takeover bid were to be implemented, the subsequent development and operation of the Cascabel project is expected to bring significant resource increments to the company, thereby alleviating the company's insufficient profitability in cathode copper products.

A Mine with Tens of Millions of Tons of Capacity

SolGold is a mineral exploration and development company registered in the UK and listed on both the London Stock Exchange and the Toronto Stock Exchange.

The company’s core asset is a 100% stake in the Cascabel project in Ecuador, which is considered one of the largest and highest-grade undeveloped copper-gold mines discovered in South America in the last decade.

That’s the point Fort

Any other potential suitors can pretty much sit on their hands until a bid is accepted. The level of the first bid accepted only becomes an issue if it turns out to be the last bid

Agreed Mike but why would they go research… that’s not why they are here

When it said the release of the 26p offer went ahead without the consent of JCC what exactly did that signify?

Surely they have enough contact with the board to know it would never fly ?

I they really want it that badly all they need to do is make a sensible offer

Hi Med

I’m not certain but I believe in the case of a bid from a competitor they may still be allowed to counter

Oh I forgot you need to be invested

Good luck to all next week

Lady boys , lager shandy and a new Datsun Sunny for Q ?

Lol Jezz I’m sure they’ll try one day

Indeed Add …. High stakes poker now

No ther party will likely show their hand until the board accepts a bid that’s when it could get interesting

Great week Solgers …. We’ve earned it ATB