Member Info for Jerryspaniel

I think you asked a few mins back at what point could a buyer do a compulsory buy out the minorities?
When they own 90%.

US$600 million would be a record low (in recent deals) in $ per oz in the ground imho. When the Au price is soaring and Telfer is desperate. I just think you are flying kites mate.

Takes two to trade. Would sell at 11p if you were GH?

Because you are worried that the facility might be pulled by the banks.......

Quady. As a former n-f metals trader I am afraid I will have to disagree, though this will be my last post on the subject cos I am trying to help you guys understand things, but if you dont want to then thats fine.
When a trader/smelter does the calculation they will be factoring in an interest rate on the funds advanced upfront. They will also plus in a price for the concentrate and a treatment charge. This will give them a refined metal price that they will eventually own the stuff at. Some of this risk can obviously be hedged out.
As I said previously if you plug in various unknowns with assumptions you can arrive at the one unknown you are calculating for. Simple algebra. All I was trying to convey was that if you plug in known prices for metal and current t/c you could calculate an implied int rate, and I bet that thats quite high. Alternatively you could plug in the rfr and calc a t/c or a metal price.
I do know what I am talking about on this. When I dont (like geology) I say it. My last post on subject.

KB no!!! If someone (lets say Glencore) is paying (Lending) upfront a shedload of money to Solgold in return for some concentrate at a later date, of course there is an implied interest rate on the money. Where do you think Glencore gets the money from, Corbyns magic money tree!!!

Hi quady. Sorry I didn’t mean now, I meant when they do a deal, in fact almost certainly many deals, as this is too big for any one company be it glencore or one of the Chinese quasi state companies. Recent news is de risking the company so while I am not sure we will see 30p before say July, I doubt whether we will see 15p again.

I know that Quady, but you are not telling me that you cant reverse engineer the proposal to calculate an implied interest rate? Of course you can plug in a RFR and get to the profitability of the contract instead. Just saying that it wont be cheap.
The great thing about offtake agreements is that you can plug in all sorts of variables at fixed prices and make it whatever you like.
It would be great if Solgold announced the terms and so we can calculate what prices and assumptions are used, but that will never happen because it suits all parties that no one knows.

Morning Grim, well everyone is entitled to an opinion!
I think it may force the bidders, who dont think Solg can take this to mine development and production, to show their hands. In fact every step along the way will increase the likelihood from now on, and thats still the most likely end game. My guess is that there will be some sort of resolution to Alpala/Cascabel this year. If NM sells out of either of the latter two, we know its just a game that he has been playing and all future discoveries will be sold. That would please me and make it more likely I would want to be in this for the long term.
I wonder what the implied interest rate is on the offtake agreements. 15-20% would be my guess.

At the risk of being shot down in flames I would have thought that MRE3 was more important newswise. These are just expressions, completely non binding so doesnt really say anything on pricing, despite what they like to portray. The one positive and surprise to me is that there are still so many independent smelters and traders who would be interested in this and could afford to finance development. I can think of 3-4 traders and the rest must be Chinese smelters. But cant buck the market so any reason why the sp is rallying is fine by me.

Are they building the decline or smashing through the dunes? If decline where is it? How much kit, what sort of kit, how many people, how long for etc etc? Thank you v much.

You are being far too hard on the man. He did remove boom and bust after all. Well the boom bit anyway...

Probably means it’s done for a reason that suits him. Maybe simply cos he has bought some or more likely a subtler related connection.

Mickey that was today’s finish not tomorrow’s start!!

Absolutely Paddy, this will test GH. We will all know how much we love him by the price in the ground he negotiates, and how close is that price to the experts fair value?

What time do you have your lunch sharky? Just want to be precise......

I did pose the question a few days ago - and got no answer - I think. Does the price in the ground change with the amount of Au and Cu found? I dont know the answer but I suspect it does, due to economies of scale etc.

Spy, it just depends how you value gold (and copper) in the ground. You can get to pretty much any price by tweaking the Au price in the ground. I think if you use $175 and cable at 1.24 it comes out to 1p per million oz. But feel free to use any Au price you like.
I think Mickey uses $1000..........;-)

Morning addicknt. I think everywhere seems to be struggling atm. Probably a combo of IT staff working (or not) from home and high volumes. Not helped by MMs not wanting to take on the Greatland Soldiers......

Bloody hell Mickey Are you that old!!:-)
I am sure I could envisage a scenario for 60p just not v likely. Unless GH announces a 10 for 1 consolidation tomorrow....