Member Info for Jerryspaniel

We have another 100 million shares in issue, when we all think the value is much greater than that. Some even thought the next MRE would take us way past 45p.
Not saying its awful but I think its a great deal by NM if he really wants to build a mining company.
I think it might push back the timing of the ultimate prize.
Tomorrows price action should be interesting. If the mkt thinks there will be a bidding war, it will trade through 45, if not, it may not make 45. I am very happy to watch and wait. I have plenty of shares atm.

Is this good news?
For the short term trader maybe. Price should rally.
But my initial reaction is that we will have more dilution and BHP wont be making a hostile bid, unless it provokes a hostile reaction from Newcrest or another.
It gives NM a lot more time, quite a bit more cash and maybe some peace and quiet to develop a mining company. Of course this may have been an offer he couldn't refuse, as the alternative may have been a hostile bid at 60p, and we don't want to lose our company for that price.
Very interesting and I would love to hear all other thoughts.

Somewhat overtaken by events methinks!
The more they are itm, the fewer shares have to be sold to pay for the take up of the options. Many of these options are owned by staff who are not wealthy, so it shouldn't be surprising to think that there will be/has been some selling. I think many will be happy for the windfall gain, rather than having a debt to pay for options in the company where they also have their careers. Some may be more risk takers but that isn't usual.
Assuming we open at above 45p tomorrow, then I would think they will all be happy.

Re options. There is not a liquid market in options on SOLG, in fact I would go as far to say there isn't a market at all. So it would be entirely wrong to say that the holders of the options will sell their options. An investment bank might make an 'Over the counter' (OTC) market in SOLG options but I doubt that too. There just isn't enough liquidity in the underlying shares.
So the owners of the options that expire at the end of the month (which are all struck at 28p), will have to sell shares to offset the option exercise - if they cant afford or don't want to hold the shares. They can either sell shares they already own, sell them short (and borrow them back from a lender - bit complicated but not impossible) or just exercise the options early on the sale of the shares.
As far as how that might affect (say) a miner who wanted to buy the shares, they could contact the house broker, who may be handling any share sale for the option exercise, and say they want to sit on the bid and hoover up any shares sold. I really cant see any other methodology. If this was a large FTSE100 company it would be different, but it aint.
I see we have acquired a few posters who are playing guessing games on future price action. Yawn.

If the company raises (say) a billion and spends it wisely(!) on mine development, then that will add a billion to the company's value. In fact if they do it properly they will add more than a billion to value. So debt doesn't have to be decretive, it should be accretive. It was different in Carillion's case but they weren't miners, investing in a mine.
Debt is only a problem if its wasted.
As I have said in the past exploration should be paid for by s/holders, development by banks.

In my fairly limited experience of house brokers, of which Hannam is now one for SOLG, they usually get the company to review the research and only put out what is essentially agreed. So I think you can say that Hannam are not going out on a limb with their thoughts.

I hear you addicknt and what you say is (I think) 100% right. My question would be have you ever known a company's shares trade at (say) 35p and they get taken over at (say) £2.00. My concern is that unless the sp gets to (say) 60 or 80, we run the risk of being taken out at that price, which in my opinion would be daylight robbery!! That's why I want the instos in as I get the feeling that us PIs are pretty full.

It doesn't mean I have any/all of the answers! Everything is just my opinion.
I have a significant investment but its a drop in the ocean compared to the company size and even recent trading volume, so I have no problem sharing opinions as I don't think any one here can front run anybody. Even in SOLG there is enough liquidity for all PIs.
I have never sold any SOLG and just keep buying more on dips or news. I think its the best opportunity I have seen in ten years, but I have missed many more that turned out well too. I see it as a 2-5 year play and one of those years has gone, but its probably still a 2-5 year play! Absent a bid of course. My plan is to double my position if there is a bid, which would be a big risk, but I think it might create a bun fight for the company. I significantly increased my investment on the BHP news as that was another bit of industry confirmation - and they know more than we do.
Funnily enough I think I first read about SOLG in the IC and appealed to my sense of risk/reward.
I have no time for people who post where the shares will be in short term and even less for rudeness. I do value opinions from people who want to dig deeper into the company and I would love to be able to speak with a geologist or mining engineer. I do know a mining consultant and will be spending some time with them over next few days. The Hannam report is a good place to start, but with the knowledge that it was essentially paid for by SOLG.
It would be great to see some insto buying, as they have much more capacity than we do.

No probs. I am expecting there to be more and I am intrigued to know where hole 64 sits.
She wouldn't comment on that but she did say that nothing she says is price sensitive non public info. Presumably 64 would be?
Do you have a geology or mining background? I am a retired metals and equity trader.

When a company buys another they nearly always take on the debt, probably always take on bank debt (as it ranks higher than s/holders). I think Mike Ashley hasn't taken on the trade creditors of House of Fraser but that is a slightly different situation. Hope that helps.
If NM has arranged a debt funding but hasn't drawn it down, then that would depend on the terms of the funding deal, I would think. All IMHO etc etc.

GV. Anna will try and get a new table updated for the Mines and Money conference in London from 26-29 Nov. NM is attending and from what I can see is doing a 10min slot on Wed 28/11 wearing his DGR Global hat. I hope to attend that presentation. He is also attending the 121 mining investment event on Nov 20/21. I presume he is speaking at that too. Maybe I will get to that too.
Would be great to have a chat with him. I think I own enough shares to at least ask!

Will do. Are you thinking that hole 64 might be on there?

GV. I have been told that approx. 10k of the 32k will be included in MRE2. So that should make it 158 and that ties in with the Hannam report.

GV. It could be more than that as that is the min is how I read it. There was 32k still to be drilled at the beginning of Oct. By the end of Oct, 10k of that should be drilled and with a 3 week turnaround that could go into MRE2, especially if that was announced at the end of Dec. However I don't know how long it takes to convert an assay into an MRE. Presumably some formula, or is it art rather than science?
Also I don't know whether MRE had some great assays in it, but one would hope that they are getting better at drilling and so the CuEq number should go up more than just in step with metres drilled but that is a supposition. However if 64 is in the numbers then that would support my hypothesis.
Not sure any of this is helping my buy order at 30p!

For those who are interested in the drilling, I received the following from Anna Legge (IR at SOLG) overnight:
I hope this provides some clarity on the numbers:

53,616m – metres included in MRE Jan 2017
124,000m – metres assayed to date (this adds 70,384 assayed metres to the MRE#2 to date)

148,000m – metres drilled to date (all of this will be included in MRE#2 adding 94,384m to MRE#1)
24,000m – metres still be assayed

32,000m – metres left to drill to complete 2018 drill programme. Not all of these metres will be drilled or assayed in time for MRE#2. We are drilling approximately 10,000m per month and assay turn around takes three weeks.

Regards,

Anna

Hey Pistachio, are you nuts? (Well someone had to say it!).

Options give the holder the right but not the obligation to buy shares at the strike price (14 and 28 in this case). Most holders are directors and staff. In this case there is Maxit who must have been paid in options for some work. Most individuals will sell some shares to pay for the options, thus leaving themselves some exercised options which become shares for nil cost. This is easily done when the options are below the current price (known as in the money) and the more they are below the share price the fewer they have to sell as they are making more money on the difference (fairly simple maths).
I realise that this is basic stuff to many but there do appear to be a few who are beginners and always happy to help those starting on their investment journey.

I posted this elsewhere:
With regards to the options that expire this month. If one assumes that you could offset the cost of the options by selling an amount at (say) 34p you will need to sell 29,765,457 shares at 34p to give you a nil cost on the balance of 11.3 million shares exercised.
Obviously the higher the price the fewer you have to sell. The other side of that would be they haven't sold any shares and they fall below 28p and become worthless. SOLG don't get £8myn and we don't get diluted by 31myn shares. Unqt
I am a lth and don't really care where the sp goes in the short term. Its a pain for the p&l but I don't have to report to anyone and if its lower I have an oppo to top up. I wouldn't be surprised to see the sp go to the large option strike price. That usually happens on the expiration on index options.

Back to conspiracy theories again are we?
I cant think of any instance why a reputable company would want to confuse sholders. Scummy ones maybe. It never ends well and will almost always end in a lower sp, and so back to the start of this post!!
I think I will send them an email myself.

For anyone who is all over the drilling metres, you could email investor relations and get them to explain it. If nothing else it will show to SOLG that there is plenty of confusion and they could help if they clarified it.