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OC also last comment on this. I believe in inefficient market theory. In my view the share price should be already higher. This price is at an interesting level. Everyone should obviously assess it for themselves.
OC just to clarify I mean the sale of the 157m shares and not a public capital raise. Also, we do not know the nature of the strategic investor. The reason why it is still here is that there are various ways how this is not sold immediately. we can see the metaphorical two birds in the bush but maybe they are not as beautiful as we think.
OC because there is still capital to be raised short term.
IMHO there is no way Bob agreed to a deal if he believes a large capital raise is coming or funding will be taken to develop this. Why do I believe this? Because CS will own around 20% of the PF entity. If there is a large dilution coming they will on <20% as they do not have the money to invest. So, they could have just waited for 3-9 months. Get the dilution out of the way for existing SOLG shareholders and then own 20% of the "fully" funded/ capital issues solved SOLG entity. I.e. I strongly believe they think a full sale or large investors into Cascabel is likely. Otherwise you would just wait.
Q not saying we should give it for cheap just saying going to production is not a guaranteed win for PIs because we will get diluted like there is no tomorrow until this goes to production.
Miketrix sure but until then we will get the eff diluted to the Mars and back 20 times.
It makes no sense trying to go to production here. This is not going to enhance value especially in the medium term. Any money paid after the DFS will not be very different to money paid now or in 3 months given all of the information is already known. Take an example. let's assume our value is 2.3bn and if we raise 300m today and spend that money we will only get 2.6bn in that time or something along the line of that figure. Maybe a bit more because the project is de-risked a bit further. But from an IRR perspective that 300m is not going to be a great investment for shareholders. Rather fund the business to get it sold.
SM but then yesterday on the call DC said they have also off-takers visiting them currently in Ecuador.
add they could have announced everything in one go together with the strategic investor deal agreed. everyone saying they are buying or holding but price going down.
I have been critical of the company and management. For once they put out a good presentation out with a path to a full sale. Solved the funding issue. Gives them time to negotiate with interested parties.
Orthern no need to drill. Sell the company!
This is big news. Nice strategic investor coming in forcing BHP to act. Amazing! Like the structure. Cash problem solved until mid 2023.
We need the full text please :)
DBW, Yes agree with the counterview. My view is that this deal happened despite Nick. He had to agree to it because there was no other viable option after all the mishaps.
MF since June we have massively underperformed peers and the mining market. massively. I hope you are right and he fixes it but again you give him the benefit of the doubt for the positives but the negatives are someone else's fault.
DBW/MF, being aligned is not does not mean he has been a bad manager. You cannot give him the benefit for doing this deal and at the same time ignore where the share price is under his watch. I am not an apologist for BHP obviously they will make sure their interest are considered. Just saying Nick and Co. have been not great.
DBW, Nick tried to create a mine that was unheard of. Got kicked out as the CEO. Failed multiple times to acquire Cornerstone. Went into a public fight with BHP. Oversaw a failed cap raise. Agreed to the hiring of a CFO who got fired in 6 weeks. Money was stolen from the business under his watch. He is still very influential. Do not think that he or anyone there is a good manager of the asset.
Orthern, I hope they do not do any stupid studies and drilling. Get the business sold. The amount of money wasted is incredible.
LM no. was just asking as I understood that is what you had alluded to. "Are you adjusting for the SOLG shares that CGP hold? And if so, how, given these may need to be sold to raise funds (i.e. they can't be excluded)?" This read like you adjust your share count already for the potential that they will definitely sell those shares. So misread what you wrote.
LM how would they just sell the shares owned by CGP? Does that not also depend on the timing of the closure of the merger?