Member Info for Fortissimo

snowman, I think most knew what you were suggesting but the reality is, unless you are a supermajor miner, it's inevitable that you end up giving most of the cake aware to the financiers in some form or another. Royalties are not liked by the majors as it's real non risk creme of the creme stuff.

SOLG's exploration folio goes deep and requires deep pockets. They have over 60 licence blocks left all require at least $7.5m spent on them or they get handed back for zero.

SOLG don't have $430m to spend on regionals. We have $25m to spend on getting PFS2 and Porvenir PEA sorted. So dreams of doing more exploration requires either JV deals or farm outs etc or an equity raise using SOLG shares.

Love it!

These big majors are finding it hard to get the low balls through. I don't think this is going to work for Turquoise hill holders either. I think they want at least another 15% on top of that.

Can't wait to see what BHP do with Oz Minerals lol!

I think the opposite. I think if they see anything slightly optimistic or inline with the ore drill prognosis, I think they'll get a rampy RNS out there and then simply caveat it with the usual one liner which says.. whilst encouraging etc etc there can not be any firm knowledge of commerciality upon completion of the well blah blah blah.

I can't remember now, did they signal early signs of discovery at Orinduik?

"Cash is needed at some point, but I also think we can't keep on giving away slices of the pie." END

Snowman, seriously... that's got to be most ridiculous thing you can say? The only way a company like SOLG can finance ENSA is through 'giving a slice of the pie'. Whether that's in form of equity or royalty or ENSA ownership ... that's up for debate. But one thing is sure, money doesn't grow on trees and you know as well as I do that SOLG's apparently plan A is to sell a chunk of the pie in exchange for cash to bring it to development and production. There is no other way. They won't get debt financing that is unsecured. No way! So it's either combo of royalty deals, CB's and some traditional secured debt or bank loans all that have high interest rates and all (as SXX found out) end up resulting in major liabilities which is dangerous ground to be treading especially when doing block cave developments.

This is my point. This is why this farce has to come to an end. The elephant in room is Alpala and so far neither SOLG, BHP or NCM seem to have made a clear case on how it should be funded. All we know is that some shareholders know how it should NOT be funded lol!

On a side note, ENSA finance / funding is always ring fenced and cannot be used for rest of regionals. Interesting one that one mmm. Instead, SOLG are seen as the 'tap' through equity to fund that part of the folio. So here's a scenario... what if you have someone like Chinese / Valuestone that want only the South folio and then BHP and NCM that only want the North folio. And some in-between that believe SOLG is 'all the folio' when it comes to funding the mother ship.

This is why CGP did not want to offload their 6.5% of ENSA to SOLG in exchange for xx SOLG shares. CGP knew that the equity/ shares would be targeted but the ENSA stake would retain and grow in value.

It's complicated, but I think we have some interested parties in the south that differ to those who have eyes on the north.

As I said a week ago or so, I don't mind BHP or NCM being against royalty deals. What I am against, is that they make that an issue but do not back it up with an alternative solution nor do they state their forward interest in Alpala or SOLG! Of course most can join the dots and read between the lines but that's besides the point. If BHP and NCM objects to royalty deals and prefers equity dilution, then they will surely also object to Franco doing $1bln finance and so on. So how exactly do BHP and NCM think SOLG should finance Alpala because it's very obvious that it cannot be done with equity raises alone.

This is why it's just a childish game and BHP and NCM (or one of them) has to stop trying to control SOLG's finance options and the direction of the business. If they continue to do so then it could be seen as a form of coercion and unduly using their position to influence a lower price Take over.

Twigger called them to account and yet here we are still apparently being bossed around by large shareholders.

So come on Henry... or Tiswas...(sic)... about time you enlightened the market on how you see ENSA progressing and being financed. If you can't put forward your ideas, then shut up and leave SOLG to get on with the business.

Someone at SOLG or Citigroup needs to show some mettle. Just tell these two to F off! Get a deal signed with boliden and off go.

The royalty deal of 1% does have an option for 0.5% to be bought back so it's nothing in grand scheme of things for BHP or NCM. And it's way way better than what could be 20% share dilution at 20p levels.

Just a hunch but I think some of the placing participants might have hedged a portion to protect against unknowns like rig delays and missing the drill window (weather wise). These events happen so prudent to manage risk. If correct could explain why the sp rerated fast on rig handover confirmed and drill date etc. Then you get a few large trades going in sub 32p as those shorts not required. Share price consolidated well now and RSI cooling nicely presenting some nice headroom for the next nudge higher as rig heads toward drill site. For those that were moaning about guidance before, I'm pretty certain spud will be early October and not end of September but you never know... best case scenario would be last week in Sept. Rigs are not cheap so whether by the day fee or contract lump sum agreed with add ons like sidetracks, it's all in the interests of ECO and team to get the rig on site pronto and the target zones drilled asap thereafter. I'd be very surprised if this is below 40's come spud. Several zones being targeted all of which will have different timeframes and durations. Anyone think it possible we might get oil shows as early as week one eg 6 days drilling?

"corrupt country, politically unstable, drug cartel..."

Tesla1... are you talking about the USA?

If referring to SOLG, could you explain to me why one of the worlds leading companies in Franco Nevada would chuck $100m into SOLG? Why would they do that. It's a royalty deal, so they only get paid if it goes to production. Explain please. Also, kindly explain why all the super majors are currently putting a lot of time and interest into Ecuador? Barrick, Rio... they are all there.

I can't wait for your answers.

Certainly an interesting trio in NCM, BHP and Mather. Between them they could pretty much prevent any predator (outside this group) from bidding. Collectively they would control over 50% if you chuck in CGP. But these major shareholders are not aligned. All want different things, different outcomes. One has the wallet to take the lot and it looks like NCM don't have much fire power left and certainly not enough to go toe to toe with BHP.

BHP are the one on a mission to move to copper/gold after exiting coal businesses. They are the ones that need to get the 'future facing' folio replenished. Perhaps if they fail on Oz Minerals, they'll turn to making a dart for NCM? Now that would seriously change the dynamic involved with SOLG and sort a lot of BHP's desire for gold reserves. SOLG is their answer to copper and Gold but will take almost a decade to show profits.

Lots of scenarios but that's M&A for you. Like dominos... one falls and then suddenly loads tumble and consolidation phase commences with the big boys getting bigger and the little guys getting taken on the cheap.

BHP and NCM or one of them has a once in lifetime opportunity to pick up the phone and find some kind of deal that makes the most of the toe in the door that they have spent so long maintaining. If they simply play hard ball and cold shoulder SOLG, then they run the risk of pushing SOLG into a deal that might not involved any of them and loses the asset and their grip entirely. This is just as 'tight' now for them as it is for SOLG. An open auction or bid war would see them likely beaten out of it if going by recent M&A action. SOLG might well be pushed toward signing up with Barrick or Lundin and BHO and NCM can't do squat about it.

Talking could achieve a lot. At the moment the share price is weak and sentiment poor. But that can change in a flash. This stock could open at 40p tomorrow if a Reuters bid rumour drops into the market. That's how it's poised right now imho.

Oh and I should add, the reason for the share price weakness is nothing to do with a change in status of the assets, but it's more to do with that fact that the bigger wallet buyers like Norges and Blackrock et al, are now rightfully sitting on their hands awaiting SOLG's guidance on funding. Are they needed to participate or do they continue to buy in open market. That's the question they will be asking SOLG and the longer Darryl and co takes to get back to them, the longer they will sit on their hands.

And that does not bode well for the share price near term. SOLG's share price was very strong and stable a few months back while the rest of the market was in tatters and this was due to large II buyers mopping up stock ahead of the PFS.

It's the larger II buyers that move the price not piddling pi's. So what do they need to do Darryl?? Do they buy in open market or are you about to give them a 100m shares at a certain price??

The market awaits.

Berry St capital (if I recall correctly) specifically said 'NO' to doing a fund raise BEFORE the PFS. They said they wanted to see a fund raise done after the PFS. And that's exactly what SOLG did albeit a 'test' basis or larger shareholders playing games etc who knows but they listened to Berry Street and followed that strategy. To be fair most expected the sp to be 40p or 50p upon the PFS but the market backdrop, risk etc all soured pretty fast after Putin launched his Ukraine war.

So not sure Berry Street have much to complain about.

I don't think Berry Street are of any importance or note. They are not of much importance. How much do they hold?

As for Darryl, I believe some of his bonus share awards are based on VWAP so the lower sop suits him .... no idea how these towns on renumeration committee came up with that cracking incentive.

The update on Moran was very exciting albeit early days. The fact we haven't heard anything since could be a sign that it turned out to be a promising hole but not quite the fantastic hole they were expecting. Eitherway, the company really ought to update shareholders on Moran's progress. What's the point in telling us about the drill's early signs only then to go quiet as a mouse.

Darryl must get be getting the hairdryer treatment from some of the mid to larger fund managers and investment firms. Back at 20p levels and well below previous placing levels means many are underwater which all goes to help BHP should they make a low ball bid. They'll likely position it in the same way as they did to OZ Mineral Shareholders citing the imminent danger of cash calls and equity raises etc and that they are the shining knight rising in to help Ecuador move forward with more speed than what the mis managed likes of SOLG can deliver. I just a feeling that NCM and BHP allowed SOLG to take the funding structure (inc royalty deal) to the point of almost pushing the button only then to pull the rug. They knew the effects and poor media following that would dent sentiment and help them with potentially a low ball offer. Come on Mather... lets see if you have the same mettle as Twiggy and show BHP the door. What a victory that will be should he pull it off. Darryl is just a puppet master in this game, he's not much skin involved and thus doesn't care about the pi's like Mather does. Mather and Pi's are aligned. That's why BHP and NCM are desperate to get rig of him. He's a thorn in their side.

Some ISA style trading going on which is to be expected. Sell the losses, book them and then buy the lot back into the ISA and enjoy the ride north.... assuming that comes which I think is inevitable.

The market is letting Darryl know that whilst it believes him when he says we have enough cash to see through to PFS2 and Porvenir PEA, the market will make sure he knows the pressure of keeping the lady waiting!

the adage ... buy when others are fearful rings to mind. If you feel nervous and unwilling to buy at 20p or sub 20p, then that's exactly how the market wants you to think. It wants sellers. It collects sellers stock and then it passes it back to you at 25p+.

The reality is, it's taken just over £100k in cash to wipe almost £25m off the market cap. Volume is pathetically low.

100k buy now is just £20k or £21k. As I said, if the big boys want stock in the million size blocks, then they'll be paying 26p+. The last bout of II trading was nearer 32p with Norges and Blackrock picking up over 25million shares between them just a month or so back.

Now, the market cap has been sliced in two since the pre PFS rise to 42p. The market is having a laugh at the expense of some nervous pi's and a few on here are apparently too nervous buy at today's bargain levels? The mind boggles. But I'm delighted to pick up another 50k today. And will do the same on any weakness below 20p for sure. Loving it!

Bozi, raising $25m or $30m via equity is so minor it makes you wonder why the market has let the share price drift down to 21p. A raise of $30m would deliver almost nothing in terms of dilution. 3% to 4% ish assuming current sp.

I tend to agree that perhaps a small raise making it through to Q2 next year might be better than trying to raise larger funds now (via share issuance) to see us through to end of 2023.

But then there's the scratchy upcoming AGM. I guess the 3 questions we should all ask ourselves are...

1. Do we think that Porvenir PEA is going to be good and will it add value to our share price?
2. Do we think the market we like a PFS2 that indeed adds another $400m value to the project?
3. Do we think we'll see a JV or partner deal on some grass root licence blocks?

You see, I've been around the block for a while and I know that if SOLG announced a JV deal with someone like Lundin or better still someone like Barrick for say 20 licence blocks (grass roots) free carry on first 20 holes or something like that...etc etc then the share price would do very well indeed. After a market warming deal like that.... then look to do a raise at much higher share price.

The trouble is... I get the idea that SOLG are just talking the talk when it comes to partner / grass root deals. I get the feeling BHP don't like it. NCM don't like it. But hear we are again... treading on egg shells when the best deals to be done out there such as Boliden or Barrick go unwanted.

Sometimes I do wonder whether SOLG have any interest at all to get the share price moving as to date they done nothing but kick the can down the road and talk a good game. Time to deliver.... and fast as that AGM approaches.

Bozi,

It's like you simply just ignore the news and go with your own made up assumptions. Seriously... you seem convinced of the idea that SOLG will do an equity placing. Why would they do this if the share price is weak? SOLG have many options of which royalty stream is one and Darryl has said they have other financial options to explore. The lower the sp goes the less likely a find raise via share issuance and the stronger the reason for SOLG to go down an alternative. NCM and BHP might niot like this but lets face it, we are highly likely seeing a share price of 21p now due to them pulling the plug on the recent fund discussions.

Finally, SOLG may just decide to explore a completely different fund raise model which involves a JV or even an asset sale.

You make it sound like SOLG have limited options. You make it sound like a cheap equity placing is the only option. That simply isn't true and has been proven before. The only complication that I can see, is the one that involves various shareholders agreeing in the same thing. That's not going to happen. So someone or one portion of the shareholder base are going to be unhappy and another portion (majority) happier. That's just the way it is. If we agree to be bullied by NCM and BHP and give them cheap shares, then I really don't see the point at all. That's as good as handing the keys on the cheap. May as well put the cat amongst the pigeons and hoist the 'strategic review' flag and invite Barrick, Rio and the Chinese to discuss how they might help SOLG and Ecuador move Alpala forwards. Because as yet, I've not heard one supporting quote from BHP or NCM on how they they see Alpala moving forwards. Funny that! All options are on the table and the lower the sp goes the less likely a share equity raise imho. The market will eat itself as they say. The market is stupid. If not careful, it might well see another deal entirely.

Well the way Darryl is going he can join Bizwas in terms of popularity or the lack of it. I understand the market metrics and the finer details of getting finance rounds sorted but this far all we know is that he thinks $25m is enough to see us through to PFS2 and Porvenir PEA but that's it. We know nothing about the cash requirements for DFS. We know the basic cash burn of the business and we know that $30m per years sorts a decent exploration plan on the regionals. So the question is... if SOLG knew that the Franco $100m would only see them through to PFS, then what did the communicate to the major shareholders regarding the funds required to DFS? That might be the big issue here. SOLG may have said, that Franco's $100m was it. That's what's required to DFS. And then suddenly it isn't. Mmm. On top of that, $4.5m seems to have disappeared which shows poor discipline. So whilst I am not trying to balance out the likes of NCM and BHP's concerns, what I am annoyed about is that all seem in total darkness regarding what cash SOLG need or needed and that's on Darryl I'm afraid as it's poor communication at the highest level. I don't think he can just sit back and watch the sp drift and be oblivious to the fact that his running the business is the reason why the stock is at significant lows. What's he going to do to turn it around? Come Darryl... step up to the plate or you're toast in just over 3 months time as is Mather et al.

rcgl2, I think you're wrong on this occasion. Darryl has already referenced that the 'test the market' process identified some shareholders who were not happy with the structure of the finance.

The cash box deal was done very shortly after the Franco deal as far as I'm aware. Bizwas is clearly referencing the structure that was used last time and that it was suggested as one off. That's potentially the cash box but also the Franco deal which we know NCM and BHP were angry about.

We don't have to get in semantics here... I think we can read between the lines. The Franco deal was part of the structure and strategy to reduce equity dilution. Of course it's going to be the same solution this year as well. Why wouldn't it be?? Well one reason why the royalty tap would not be needed is if the equity tap could be done at a fair price circa 35p+ levels. It seems the market might have been moving toward that (Blackrock included) but for some reason, NCM and BHP decided at the last minute to back out.

I'm guessing on the latter but there was a solid reason for Norges and Blackrock to be buying quite heavily in the early 30's just weeks ago. That reason hasn't gone away but their share purchase activity has which is why the sp has drifted down. Understandably, the likes of Norges and Blackrock are awaiting guidance from SOLG on what happens next as if equity raise on the table again, then they will participate in that rather than buy in open market.

The longer SOLG remain quiet, the longer the market will fill the gaps with negativity.

One thing that annoys me most right now is that SOLG haven't actually communicated to 'ALL' shareholders HOW MUCH cash they required to see the company through to DFS plus some exploration. All we know is that the current $25m cash pile could be stretched to year end. That's pretty poor by all accounts. Even AIM listed minnows outline what they need cash wise to see the business through the next 12 months. SOLG are playing a cagey game and not treating all shareholders as equals. Some larger shareholders know the amount of cash required. And that's out of order and needs to be addressed.

Try and buy 500k stock in two blocks right now and see what price you are given. You'll be lucky to average near 25p. But nibble away with smaller 50k chunks over a week or so and you might get that 21p price level on 1m stock.