Member Info for Fortissimo

I was suggesting that if SOLG go the royalty route again, then they will force BHP into making a bid and the chances are it would be low ball and not reflect the broader folio. Hence SOLG want to explore more, they want to prove that the folio is worth a lot more than the market is giving us right now. So do you kick the hornets nest (do a Franco deal) and that's end of you or do you try and stroke the snakes back a bit and see if you can gain another 12 months to max the asset values as best you can aka porvenir and so on. We all understand the forward story (well most of us) but the problem is, there comes a point where it is no longer sensible for BHP and NCM to support SOLG IF they are planning a bid etc. The PFS SOLG have arrived at will be ripped up by BHP and NCM if they take on Alpala. They will create a PFS that delivers on scale as they can throw more Capex at it. So what's the point in SOLG boosting the PFS at end of this year?? The answer is a simple one... it gives SOLG more options to do finance deals and a better asset sale price. Prior to PFS BHP and NCM were happy with SOLG derisking the asset and doing the workhorse ESG stuff. I think a bid is coming and NM's DGA presentation basically told you that directly. It might say corporate action.... but it means 'transaction' of some sort that's for sure.

Meanwhile on another planet... TSX ends evens at 27P+ eqiv. Clearly no one fussed over there. Irwin quiet. Something cooking for sure.

Look guys, if the next RNS that reads like this.... "SOLG launches strategic review after funding options unfavourable and will seek sale of the business" as in best interests of all shareholders etc etc, then you can see how the scene has been set. But if you think the sp is going to fall on that kind of headline then you're wrong. It's likely to explode higher.

In a nut shell, SOLG are trying to get to the point whereby they can deliver an extra $1.5bln ish to the upside on the PFS. That will help with bigger funding talks and any sale of the asset. So is it any surprise that NCM and BHP have likely turned their backs on helping out lol! They hardly want to invest in boosting the SOLG share price or asset price do they!!?

Look at these scenarios...

1. SOLG does $100m equity raise (Just a guess on the $100m) and BHP and NCM then get virtually a controlling stake as they will be over 50% with their buddies like Blackrock et al. So that's suicidal. But would allow SOLG to boost PFS.

2. SOLG don't want NCM and BHP to get near 50% (combined and blackrock etc al) so they seek Franco style royalty funding. So that's suicidal too as BHP will just counter and say not having that, we will make an offer and it will be a low ball.

3. SOLG do JV deals with Solaris/Lundin on Assets in south and then discuss sale of Alpala to NCM and BHP. Now that suits quite a few out there and might not bring home the full bacon and eggs but might see SOLG deliver another Tier1 assets in the south and expand on other folio ops.

In short... BHP and NCM (IMHO) no longer need to fund or help to fund SOLG. And they kn ow if SOLG seek alternatives then they just strike like a snake anyway.

BHP made a dart for Noront on July 27th last year. What is it with causing disruption around the summer holidays? A BHP tactic? While many are on sunbeds the BHP crew are wearing coats and scarves in Southern Hemisphere. Mmm.

It's going to kick off and I think it's heading where we all thought it would... with a sale or bid approach. SOLG towers just setting it up nicely with todays RNS.

So much lined up, it's amazing to think eco is still sub the recent equity raise price of 30p.

When the drill bit gets turning it should be back into the 40's and 50's pre TD.

well here's my take

1. BHP and NCM got together in May to discuss their plan on low balling SOLG.
2. The big two entertained an equity raise at much higher price than today hence why the sp was looking solid at 30p levels
3. Then the big two decided to change their minds, knowing that this disruption would make SOLG look weak.
4. Next move will be an offer.... just wait and see.

All pre-planned imho and SOLH and darryl may have walked into it thinking he was pleasing majority when in fact underhand tactics are in play. Just a hunch but there's no way Norges would have been buying aggressively and Blackrock if both knew a cheap equity raise was coming. I think NCM and BHP are playing games and SOLG should just go down the Boliden or Franco route and xxxk em. Let them out with counter offers and we'll take it from there. Bring it on. Barrick are waiting patiently from what I hear. So chew on that you BHP stooges. You know who you are.

I believe the AGM resolutions made sure that all shareholders had to be represented or allowed to participate. All about shareholder rights. So BHP and NCM could not be excluded.

Redknight,

For the last time... there was no failed fundraiser. And it wasn't this week. The new lady is working on something and there are a number of options available. It's not about just doing a placing to the market. There's more to it than that. I know for a fact that BHP and NCM want a greater slice via equity so can tell you now that they would not have passed it up. They would bite the hand off.

Trouble is... the likes of Boliden and Franco are known to be interested too.

Looking forward to when you buy your shares back as hopefully this decamping and negativity nonsense will end.

kat2008, yes but there was plenty of time to manage POG risk before all the big sanctions got slapped on it. Just highlighting that your ability to assess situations is a little rough around the edges so pardon me if I decline to listen to your wayward rants on SOLG.

And there's allot of pi traders doing a good impression of disappointed long term holders lol! Goodness me, never read such over dramatic stuff.

Ermmm guys... you knew a fund raise was required and today's RNS tells you exactly that. What you don't know is whether it comes from equity raise or strategic deals or royalty packages.

It's as you were but as BSC says... many are tired and best result for all is to just get it sold. Of course SOLG's repost is that they plan to spend a portion of any raised funds on delivering another $1bln+ value to ENSA. That's fair enough and would add to the final price but the reality is, the rest of the folio is going for free and that's a disappointment.

Chicken and egg stuff as need some cash to get that updated and bolstered PFS sorted. That then delivers shareholders best price for asset or best JV deal potential or best finance discussions.

Nothing has changed from yesterday. Nothing at all. Cash pile still $26m which is more than enough to see through at least 3 months. Burn over last 2 to 3 months looks about $5m per month.

kat2008, looks like you lost a lot of money on POG. Didn't you see that coming? Things very different here on SOLG. Like I said, I think you need to understand a bit more about the company and past fund raisers and price points.

question is will all BHP's competitors just stand by and let them walk away with it? I doubt it very much. Barrick were having cosy chats with Lasso recently as reported in media.

Just look at how NCM treated GGP. These guys play dirty. They need to announce an auction process and just get it all tied up. Darryl has his bonus options now and that's what we were waiting for lol! So time to press the button and no surprise some SOLG staff are looking for new jobs... SOLG is about to be sold off.

Exciting times ahead and what many of us have been here for. The end game. What price?? 40p? 50p? 60p? 70P All depends on other parties like Barrick and co. They are the ones that know the real value of SOLG's folio. BHP won't walk away with it on the cheap. Twiggy will make sure of that.

"A strategic review takes months of uncertainty"

Ermmm red knight.... are you joking. We've all been here for yonks waiting for the for sale sign to be hoisted and you think it's months of uncertainty?? More like months of ramptastic posts on this BB as names get thrown into the ring like Barrack and Rio et al.

A strategic review is a 'sale' under the circumstances that SOLG are currently in. It will soon be time for you to buy in again as there's no way this is going down for very long as the end looks inevitable here. NM has already telegraphed it for you. Question is... what do SOLG have lined up as a defence? Remember they have been in strategic discussions for well over a year now. Would a merger with Solaris or Lundin in some form be the answer and make it harder for BHP to swallow?

They may well have been in discussion to secure funds post PFS but then market topped off, War escalated, interest rates started to rise and Ecuador had a mini revolution which was not at a great time. So more than possible that the window of opportunity slipped fast. But the fact remains.... Franco have said they want more. They had another $50m lined up. It's BHP and NCM that don't want the royalty finance. They just want more cheap shares because every share at 25p or 26p etc is at a significant discount to the end sale price which would likely be double or triple that. I say get a deal done with boliden (like Franco deal) and lets see what BHP and NCM do. Toys out of prams can't hurt us but if a bid comes... win win.

Fox in the coup, sharks circling... if ever you were going to pitch a bid it would be now. NM said expect corporate action... and it's coming. What do SOLG have in defence of a BHP bid at 55p? And don't say diverse book please!!! I think we're about to see the end game unfold as it normally starts like this.... need finance.... but dilution not welcome and buyer sniffing around who can put smiles on shareholders faces albeit at lower than its worth. I can see 55p going through unless it's countered and a bid war could see it through to 100p. Digger and Miners conference next week.... wonder whether we'll hear some news after that?

BSC were the ones that wanted the fund raise done 'after' the PFS was issued and not before. Ironic now that after the PFS they are now saying that they think its been mis-handled??

Good to see them pushing for a strategic review and sale of the business as it implies end game nears and when that AGM nears in Dec.... it really will be game over for many SOLG board members. They've tried valiantly to escape the grip of BHP and others and best case scenario would be to kick off an auction process and let Barrick and Rio et al enter the ring. Could see the sp in the mid 30's if you get a media report saying shareholder revolt and sale of business likely. Load up the truck!

It's funny as there wa sa city rumour that BHP and NCM were going to make a bid. Redknight, we've been here before. You sell a few shares and then everything is all dire straits. You buy some and everything is all fab again. See how that looks?

They haven't tried to raise capital yet so you're rumour is untrue and unfounded. I know this as the new lady started just a few weeks ago and has been charged with exploring various options for finance. The cash pile is $26m which as you know will last for 4 months if pushed. There's no rush and the new lady will deliver. She's very good at what she does. Better than Ingo by a country mile.

It's funny you know... we can talk about the reality that a fund raise will be required to see through to DFS and we have all done that on these BB's for last 3 to 4 months. The market knew about it. Investors knew about it and yet when the company confirm the reality (which is the professional thing to do) there seem to be a few on here that suddenly appear surprised. Like I said a while ago... the reason for the Franco deal was that BHP and NCM wanted a cheap placing in the 20's and NM was having none of it. At end of the day, if BHP and NCM want to gain another 4%+ each then they'll have to pay north of 32p imho otherwise a royalty deal with Boliden or another looks better value.

Equity raise is the norm but is usually for a $40m stake and sorts the exploration. It's minor. The amount required for DFS is unknown. Could be $50m or could be $100m or could be $150m! Who knows? But as per usual this BB runs riot on speculation. It's pointless. The irony is, the $40m raise will help drive the sp through exploration catalysts so it's win win. The new lady may well be sorting a nice little partner deal out with Lundin, Solaris and Codelco. This RNS ensures that all those confidentiality ties flying around SOLG are maintained but also that 'we' all know for sure that something 'corporate' is coming. Astute investors knew this anyway... but stock market rules often require companies to deliver greater clarity these days on 'going concern' accounting procedures and my guess is that this is better than reading it in the MD&A. I'm chilled and fully expected this. Question is... will SOLG go down the Boliden route and draw BHP out to bid? That might be what's coming next and the sp will be 40p+ imho if they announce a boliden deal as everyone will assume BHP counters it. Game on. Stop flapping!

`Sorry meant ready for us after Orlando drill.

They certainly have the best kit available to drill Gazania-1. Dana have finished with it so ready for us now.

https://www.offshore-energy.biz/island-drillings-rig-gets-started-on-its-next-gig/

https://www.islanddrilling.no/fleet

kat2008, are you aware that Franco Nevada funded SOLG $100m for a 0.5% royalty (or 1%) and BHP and NCM were shunned when wanting to get a cheap equity placing?

You aware that Boliden have done a site survey some months ago are you not?

I suspect a repeat of last large funding is likely. Boliden to take 1% royalty and hand over $100m and then $40m raised via shareholders for regionals. It worked out fine last time around but BHP and NCM were not happy, but 70%+ of shareholders were so it's the majority that counts. You need to do some deeper research as you are behind the curve.