Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
$4.58 right now and heading toward $9790 on the tonne. Looks like $10k break is imminent.
It's happening guys... it was always going to happen. Copper shortage looming and even with slow down on EV'sthere's so much lag due to covid that copper is just not going to get replenished in time to meet demand. Mines are so far behind and development opportunities few and far beyond.
One way to fight off unwanted approaches is to counter punch.
Just imagine if Anglo pitched a bid for SOLG. Talk about putting the cat amongst the pigeons... win win.
Well lets face it... after BHP's move, I suspect just about every investmernt house out there will have 'copper' and M&A on the monring list of analyst discussions.... in Wolf of wall street style.... right everyone... today we are going to find every single company that is associated with copper, do a full research on them and then just buy the socks of them all.
PoG set to test 2800oz this year and copper to break $5 very soon imho
The market has been asleep at the wheel... and BHP just woke them all up.
Talatum,
there's a few FTSE high influencers already complaining about the poor valuations in the FTSE and that they are gifting value to rest of the world and as such FTSE losing ground as predators often listed elsewhere etc. There's always been alot of protectionism toward chinese companies taking over FTSE stocks and it's quite rare so not going to happen. That said... somehow.. over the decades the chinese seem to own pretty much everything in the UK in some form or another whether that be infrastructure, ports, docks etc.
Bottom line is... this is very very very good for SOLG as there's no way on this planet BHP are letting SOLG go for peanuts.
So lets get a chinese bid tabled and then lets see who comes out of the shadows in this now very highly aggressive and competitive mining market.
Unleash the dogs Bob... let them go. Let them fight it out.
BHP have fired the starter gun. Just watch this sprial through sector.
And if BHP don't get Anglo... surely it's a no brainer to snap up SOLG.
Now's the time to start tweeting.
The chinese must be feeling that it's time to stop kicking tyres and secure their copper/gold resources before it all gets gobbled up by players that are in the pockets of higher powers (politically) that want the chinese thwarted on resources.
If BHP got hold of Anglo... it would be like an OPEC of copper. Mmm!!!
Basically says it's 'all about the copper' and mining industry in shock.
Biggest shake up and M&A likely to be seen for decades.
Looks like the great scramble for the metals of today and tomorrow has commenced.
Surely even the thickest of markets can't overlook SOLG's tier1 world class copper stuffed full of gold asset.
Schlemiel, that bloomberg para really does stand out. Nice find.
"Simultaneously, industry majors probably will accelerate their hunts for other large or fast-growing copper assets to keep pace with BHP."
Anyone know where there is a 100% owned tier 1 copper/gold monster sized mine up for sale that isn't in a super majors hands already??
It's been a very long hard wait this one... but stars are indeed aligning now in 2024 for SOLG.
Worth remembering that this is an all share deal being proposed, so Anglo shareholders effectively become BHP shareholders and that might not be a bad thing in some eyes.
BHP's OZ minerals buy was cash and shows some level of cash spend.
Any deal with Anglo would likely take 12months+ to 18months to complete. There's alot to unpick there and it's going to have the entire sector going bananas soon.
What are RIO Tinto up to these days?? They might fancy a stab at Anglo too. Not that much between BHP and Rio imho. Give ot take £30bln. lol!
Hotting up big time!
I'm still astonished at BHP's move. That said, I can't see it winning through unless they up it by another 5 or 7 billion or so. Can't see Anglo shareholders letting it go for less than £30 a share.
If BHP do fail to acquire Anglo... I wonder what else they will then turn to!
To clarify, I don't think we'll be around another 2 years but it might take a two outlook approach to finally push some into taking some action. The point being that any potential bidder knows that short term funding is just time wasting at best. It won't advance Alpala or derisk it at all ... as Alpala needs at least $50m to $100m spending on it to derisk it further or to a point whereby that cash actually looks well spent.
April 25th.... today. 5 days before May kicks in... then 15 days for MD&A deadline I believe... then about 20 days thereafter... d-day for signing the activation clause on the exploitation phase.
They've got about 5 to 6 weeks left of this charade imho.
Pressure is mounting on Bob but market backdrop has improved greatly so no excuses for poor performances.
Orpherncopper... a royalty deal won't hurt the chinese if it ends up being done with the chinese! Osisko is by default a chinese funding player imho. And remember, all royalty deals have buy back clauses that reduce the impact on the asset profitability by over 50% or more. So it's smallfry stuff when you are dealing in multi billions.
Eloro, sort what funding out?? There's two funding requirements needed before the market will feel it understands where SOLG is going...
1. A $20m raise to keep the lights on ... bred and butter stuff.
2. A ring fenced raise to further derisk Alpala.
In the case of point 1.. that's already a given as we've been told it will be non dilutive. So that's likely based on CGP shares get sold.
Point 2 is a tricky one... some will say Alpala does not need any more derisking... leave it to the next guy etc. Others will say, it cost $60m last year to get us to a revised PFS. mmm! Hence ring fenced cash for ENSA will have to be $50m+ at the very least.
It's quite possible that there might be a 3 way deal brokered that involves, a sale of Porvenir and sale of 5% CGP shares to Chinese along with a 0.6% royalty with Osisko for $50m (also chinese so they'll be happy with royalty deal).
That might see $100m to $200m for Porvenir (and that's for a stake in it not a full 100% ownership). $50m from Osisko and say $20m to $25m from cgp share sale.
That could bring in $250m to $300m in cash and sort the derisking on Alpala through to DFS inc elevator shaft works. Likely to take us through to 2026.
For most... the idea of another 2 years will feel painful... but that pain will be shared by potential buyers on sidelines which might include NMM, FMG, BHP, and a few others. Then ... and only then might they make a move as waiting another 2 years will set them back.
I'd rather see the SR released an confirmation on talks with interested parties that might end in a sale or not etc. That would see us back over 25p+ imho in no time at all.
Eloro,
Whilst I'm uber critical of Bob and Scott, the asset is unquestionably outstanding. It will get sold even if the inept management take far too long over it... it will get sold for market rate. That's how it works.
You need to remember that Noboa is firmly behind it, you need to remember that Franco have chucked $100m at it. Osisko $50m. These guys know they'll be getting their money.
So buy the dips and get nicely positioned ahead of what should be a pretty tasty bid auction process judging by how bad BHP need to bolster their resources with deals like Anglo American. Who's next to make a move?? We've seen NCM gobbled up... Oz minerals gobbled up... Anglo possibly gobbled up... it's all about consolidation and picking off prime assets right now while things are a bit beaten up.
It's coming... and soon imho.
Well, if I were the chinese, I would be banging in a bid imminently as BHP will be preoccupied with Anglo and may not counter offer especially as it would complicated the Anglo deal considering the total spend on SOLG and capex for dev would be around £5bln+.
Only issue... is if the chinese pitch a low ball... it might well succeed. We know likes of NMM and FMG etc will likely throw hats into ring if price too cheap. No miner with deep pockets would allow the chinese to walk away with bargain of the decade.
Mining sector certainy hotting up now. Angl BHP could be largest M&A deal market has seen. It's massive!!!
Quite opportunistic by BHP as Anglo share price has halved over last 24 months.
That's a huge deal and will wake up the market. Makes BHP's Oz minerals deal look smallfry.
I can't see Anglo shareholders going with this at all which if it fails, the market will know exactly what BHP are after and how much they need it. Bodes well for SOLG... should the deal fail and bodes well if it exceeds as other players will need to play catch up fast.
Very weak volume today
seems like plenty of folk just sitting on hands until Bob and Scott deliver something that the market believes to be a fix for the expected short term funding.
Problem is... the market will shrug that off once secured and simply move to the elephant in the room which is ... where's the bigger funding coming from etc etc... and until Bob confirms that one... it's just going to be the same old dross.
At the moment... Bon and Scott simply have no answers to give. And that's a failure based on being almost 18 months into this since the merger confirmed. Fast and smart was promised and instead we got slow and stupid.
Share price is where it is because management have not resolved the old market mantra of.... 'you've got no cash, so we'll mark you down'.
Bob & Scott are not youngsters... they are old guys who know the old market mechanics never change.
Perhaps Bob's done a deal with the chinese and that deal is partly designed to enable them to acquire as many shares as they can in open market at sub 10p before an offer gets tabled... of course within limits... like say 5%+.
Why else would Bob allow someone to simply chip away at the sp at levels sub 10p?? He can announce funding sorted anytime he likes according to some sources. So one has to assume that by waiting and waiting and leaving the sp to the wolves... he's doing so because it helps him or his buyers sweeten some deal.
Overall, all miners are taking a breather after a very solid April month. But nothing has changed to Alpala or metal prices give or take a minor swing on pog and silver... so just another share price swing for the traders to play with.
Bob isn't interested in supporting pi traders... he's interested in getting Alpala or SOLG sold. Well... that's what we all think.
TheItalian,
Scott has told you that the bread and butter funding required to keep lights on etc will be NON Dilutive.
He's also said that they are not looking to do any larger funding package deals in the short term.
If you read between the lines, it suggests that they are working on a deal of some sort and if that drifts on, then cash to continue those talks will be incoming.
I believe theJune 6th deadlines for activating the exploitation agreement signed in Dec 2023 is the moment that the asset tips from being a waiting game for buyers to being a ticking time clock which penalises any buyers for every month they deliberate.
A developer will want to get this moving asap once that exploitation agreement is signed. Of course the environmental permits are required too but I believe that's connected to the pilot hole/ elevator shaft test work which is required before developement can commence. That said, it's possible to do the low hanging fruit shallow development first and then seek derisking plans on the block cave works alongside that or after first ore on the earlier production plans. This is the stage process being discussed and as we know the chinese are very keen on doing mining in stages.
Too much money to be had with fossil fuels and the german's are so far behind the chinese when it comes to electric cars... so how best to beat the competiton??? Simple... just stop people buying electric cars and push them back to good old european shiite.
So here's one for you... A shareholder water company racks up 10 billion+ of debt but for last handful of years still pays out it's shareholders over £3bln in dividends. Then after that... it goes under and tax payer carries the debt burden.
Talk about taking from the poor and giving to the rich and then when they are done with it... give back to the poor and while you are at it... double their bills to pay for all the sweage issues that should have been paid for by shareholders.
It's a shiiiite world friends. As ugly as it gets.
Hard to ignore the criticism of Scott especially when you take his last two sound bites
1. He'd take 23p (that's not what you want to hear from your CEO)
2. After month and month of a closed period, he buys £5k of shares in open market (that's not the message you want to hear from your CEO... it basically says... it's a buy guys at these levels but don't invest too much as I'm really not sure what the xxck is going to happen. So just beer money... don't bet the house.
I wonder what Mather would have said or Darryl for that matter.
23p? The bloke for be sacked for saying that.