Member Info for Fortissimo

Agree, we are in market (particularly on LSE) whereby brokers or analysts seem incapable of valueing stocks correctly and it's been this way since covid days. The problem is, liquidity has dried up due to belt tightening and fund managers are awash with easy money playing the pension type stocks drivel returning a nice 10%+ rather than the usual 2% pa. But times are shifting now and as rates fall (and they will) they'll be forced to play more speculative stocks. In meantime, it's bargain of a century time for predators seeking miners with heavyweight resources. BHP would not be out for Anglo if they were happy with their own copper resources. It's clear that they need to bolster that side of the business fast.

The irony is, had they made an offer for SOLG 3 years ago at circa 80p, they might have bagged the entire ecuador folio and would likely be 2 years away from production now and looking sweet as a nut going into 2025/2026 metals boom.

Sitting on their hands and trying to disrupt the SOLG Boardroom, using underhand tactics and generally trying to strangle SOLG into submission has actually put them back 5 years+.

If they don't succeed with Anglo.... just what are they going to do?? Other serious copper players have risen higher now and the element of surprise has gone out of the market now for them... but you wouldn't know it looking at share prices. Mr Market still asleep at the wheel. But at least there is something in the air now that suggests some analysts are getting a kick up the @rse for being a bit weak when it comes to reading the futures in metals and M&A.

1. Does anyone know of any other Tier1 copper/gold/silver mines that are 100% owned and up for sale right now??

2. Does anyone know of any super majors or deep pocketed state funded entities that are looking for Copper/Gold mines??

3. What happens to super majors and their CEO's when they fail to replenish their resources ahead of a metals boom??

I see Mr "I'll chuck 250k blocks into the market to stimie the rise" is active today. He's having to chuck more and more at this to keep it under 10p. When he stops or gives up... we will move like a train without breaks.

Redknight,

The $10m loan was taken to ensure they could publish the MD&A and meet the 'requirements' for the going concern statement.

You don't have to complicate things with alternative theories. The reality is, the cash pile was $3.5m approx at March 31st and at MD&A publish date of May 16th, likely to be near $1m.

Bob could give a hoot whether the sp was 6p today or 10p tomorrow. He's proven that already by allowing the sp to trade at sub 6p when it could have been avoided easily but securing funding earlier. But he was happy to leave the market to speculate and in doing so he threw the sp to the wolves. So no... Bob's not doing anything to support the SP.

I agree with some other posters, that by actually NOT naming the party giving the loan is somewhat skirting with rules as if that $10m loan leads to a finance deal by a party that is involved with that deal, then in theory it becomes an insiders financial transaction.

When Franco did the $150m NSR deal, Mather was able to confirm that a $15m bridge loan (May 2020) as being advanced by Franco to allow them to dot the i's and cross the t's which as we know took another few months with the $150m facility becoming available for draw down in Sept 2020.

Hence, Franco was the provider of that loan and it was advanced so the business was viable until they could get their NSR deal signed.

If the same is being done today, then I'm afriad, Bob needs to fess up and tell us who is behind the loan.

My guess is that it is via Mr Liu. Which of course is as good as coming from China Republic CP.

The Chinese are very active in Ecuador and already have producing and exporting mines. They know their way around Ecuador, mining staff and every bit of red tap.

So if they need more time before stumping up the cash, then it's more likely to be around finalisation deals on land purchases, export routes and so on. All the stuff that's important to get inked before you commit to building a ine. If you do it the other way around... it can cost more and you become hostage to very folk holding out for more money as they know you need what they have etc.

All involved might also be waiting to see what happens with Anglo and BHP come May 22nd. That potential deal already has the copper market and miners in a complete spin. It's tantamount to the beginnings of a cartel at a time when the world needs copper more than ever before. It means copper assets are going to be more and more valuable and in demand going forwards.

If the chinese are involved... we know they take their time. But same could be said of Franco. They agreed $150m facility in May 2020 and that 'officially' completed and became available in Sept 2020.

So the period of announcing a finance package and actually getting one can be months. Hence... the $10m might well be to cover that period of dotting the i's and crossing the t's.

Noboa's already been falling over himself to help mining companies. Just look at all the pro mining activity since he's arrived in his position.

I think you'd be far better to assume that all the permits are in place and ready to go but Noboa will not sign them until the financiers/partners have signed with SOLG on deal.

Likely that all will take place at same time ... bit like exchanging contracts.

Remember, the deal signed with Ecuador mining authority and Noboa on Dec 6th (Barrick signed a deal then too) gave SOLG 6 months to activate the exploitation licence. That deadline was June 6th.

Now we here in the MD&A that the deadline has been extended to June 30th. So on that basis, it's fair to say that it's SOLG that is holding things up... not Ecuador Gov.

Big volume day compared to last few weeks. Anyone would think we are back in the MSCI looking at those large chunks.

Wow, look at the volume on TSX. Never seen that in the first hour.

Something cooking for sure as suddenly big blocks going through here and across pond.

How the price is being held is anyones guess.

That's me all topped up.

Someone else getting stuck in too.

There's a stack of buys lol!

Here's the para from the $150m Franco put on table in 11th May 2020.

"Concurrently with the entering into of the NSR Financing Agreement, SolGold and Franco-Nevada have also entered into a US$15 million secured Bridge Loan Agreement ("BLA") of immediately available funds as an initial advance (the "Advance") prior to closing the NSR Financing Agreement. The full amount of the Advance will be disbursed by Franco-Nevada to SolGold today. " END.

So quite possible the same has occured again but Bob and Co have instead decided to keep the entity doing the loan hush hush.

Franco's finance package actually completd 9th Sept 2020. That's when $100m was made available for draw down.

So quite possible that a finance package could be RNS'd in next few days and then cited to complete in September 2024. That would see a window of opportunity for various interested parties to counter offer or propose a better way forwards.

So don't be surprised if you see an agreement announced very soon with completion set for September.

We'll also know the outcome of the Anglo/BHP situation around wednesday next week. BHP need to make a formal bid by then or clear off.

Whilst I don't think SOLG is crucial to BHP's near term plans, I certainly think SOLG is on their longer term plans. They've publically declared a huge interest in bolstering copper resources / production so not rocket science to see how SOLG fits with them.

Barrick active in Ecuador and Gina R recent foray suggest both think Ecuador is likely to be best bet for copper supplies 4 to 5 years away. When things get tight in Chile, Peru, Brazil, Argentina etc... through M&A / consolidation, then Ecuador is going to be very hot property. No wonder Barrick and Gina (and twiggy) are in there early doors.

The fact we are conserving cash and doing zero exploration suggests that it allows interested parties to pitch offers based on where we are now. If we we're actively exploring and hitting big holes, then it complicates things as valuation moves around frequently etc. I'd have preferred some exploration over last 18 months to help with the long drawn out ENSA discussions but it is what it is and if Bob brings it home... all good.

Nedk,

I believe there are some crucial land purchases still ongoing and these can often take longer than thought to get sorted.

The key thing for me is that the tailings/waste plans must be complete subject to land purchases etc which was very important as without it... there would be zero chance of the environmental permit.

In a nut shell... when SOLG has all permits... they are open season to predators and it's clear Bob has a deal/plan to ensure that when news arrives... we have a defense against low balls. Or... like some think... his game of poker is down to the last hand and if someone's playing silly booogers then they'll face losing it to a finance deal if they are not careful.

We are into the final phase of this saga.

It's strong buy from me but remember... finance packages can fail at last minute so not done and dusted btu clearly Noboa wants it to happen so suspect they'll be a few plan B's should one party back out anyway.

That's an interesting one as the deadline for the exploitation contract was June 6th. So if they have moved that to June 30th, then I think we might have a guide on when they expect everything wrapped up.

I've said for sometime now that once that exploitation contract is triggered... it's game on so that was always the key deadline for all parties.

So Noboa is on board as he's extended that deadline and suggests he must have seen something to back down and extend and help all parties get over the line.

Exciting times... I've kept some powderdry but am now actively buying chunks when mm's are generous sub 9p or above as this is going to kick off big time.

We are almost there solgers. And the increase in green lines suggests they are rattled.

Redknight1,

No idea where you are getting those figures. It's clear ... they have burned $8m or just under in last 3 months.

You've been suggesting the cash burn is much lower for the last 6 months yet each time it comes in, it's around $2.5m to $3m per month.

Hence why in the statement today they clearly say funds up to Sept 30th and that's based on circa $11.5m.

Read the numbers. They are there in front of you.

So essentially... funding package or buyout deal sorted and just dotting the i's and t's.

These negotiations can drag on but like the Franco deal, often they overun by a fw weeks and not much more as all parties would have had a deadline that they agreed to work to.

I think it's safe to safe that Bob had been working on getting a deal based on cash already raised, eg through to around now or end of June at latest. The $10m loan is identical in size to the one Mather did prior to announcing the Franco deal. If you look back, that deal eventually followed just a few weeks after the $10m loan was done. So I think they are very close now and the overrun of $10m is merely an accounts sign off proceedure as it ticks the going concern boxes.

So I think we'll here of Bob's masterplan within the next 6 weeks. Possibly sooner.

$3.4m in bank as of March 31st 2024...not as of now.

They had $12m approx cash in Dec 31st 2023. So burn of around $7.5m ish over 90 days. $2.5m per month.

So $10m loan from mid May to Sept 30th (as they state) would suggest they will be burning around $2.5m per month.

It's clear that they don't expect the $10m to see them through which would suggest they are quite bullish on getting the finance package done.

I did say that cash pile would be sub $5m and market was expecting that. But they are $1.5m below that and Scott's huge cash savings that he claimed were coming are pretty much absent considering they are doing zero works now.

Cash burn predicted to be around $30m plus $6m licence costs per year. So $36m just to keep lights on and do zero exploration and minor activity on ENSA. It's a costly business mothballing a business isn't it Bob?

Time to get this sold or financed/partnered up. You've had over 18months on this already.

Ohhhh we are in demand if they've sent a paid basher to our board. Thought had enough already but guess they are clearly a bit worried and need to bolster their negative spin on SOLG.

David85 is a known basher and posts on many BB's all with the same negative tone.

And they think they carry weight?? Oh dear... what a said way to make some pennies.

In the bin with the rest.

Now that metals are doing cartwheels, M&A is on and the race for resources is in full swing... throw in a helpful Noboa and surely now management will see the more welcome backdrop for doing some exploration.

We have an amazing folio of opportunities and the market is begging for some new discoveries.

Now is the time to get that drill going again Scott and then you can do some proper work again on the ground where you can make it happen.

Lets get this moving pronto.

I think some forget that we have 157m shares which we can sell to raise cash which are NON-DILUTIVE as already in issue.

So why go with a $10m loan?? Perhaps one reason is that if finance deal is close for a larger chunk of development costs, then really all running costs if ENSA based should come from that finance package and not through shareholders equity.

This may suggest a 2 tier strategy or split coming with ENSA being one part and then regionals and exploration spun off. The latter would need it's own finance package and that would be expected from equity/shareholders or via partner deals or incoming cash to use as directors see fit. But where ENSA is concerned... all finance is 'ring fenced'.

So there is a clue there for the smart investor.

Sorry to disturb some from your 'stack' of pointless posts.

Do not feed the animals. There is a sign around here somewhere but I think someones pitched a sleeping bag up against it.

It's not a big leap these days to achieve the following especillay when you have a world class asset like Alpala in a pro mining country under Noboa (on a select few licences etc) and with Copper and gold at all time highs.

So lets see...

Franco in for $300m, Osisko in for $300m, Mitsui in for $300m. That's a significant portion sorted. Then, lets go with jiangxi and or CRCC tonguan for $1bln (or split between them) and in exchange, they get 5% CGP shares, Porvenir and a few other blocks and 30% stake in ENSA. SOLG retain 70% and free carry to first production. Earn in deal gives Chinese further 30% for funding phase two and spend of $1bln.

Personally, I couldn't give a toot what they line up as I think it's 99% certain to see alternative offers or proposals from likes of NMM and BHP. These two will not let chinese or SOLG carve up ENSA again.... not without a fight. They've been sitting on hands waiting for Bob to show his hand. That time is arriving soon. If the chinese hold around 10%+ SOLG shares (assuming above) then they'll do very well out of it even if they lose based on 3 or 4 times their investment.

FWIIW... I think Bob will reveal an offer before he reveals finance as think the latter is simply to get an offer tabled and that will likely arrive before any finance is announced... that's the way it usually works.

Sleep well orpherncopper... I think you'll be surprised at what comes next.