TBTT, nicely put and the Chairman should now exercise his fiduciary duty and ask NM to reconsider his position. I envisage he’ll either walk the plank or pick up the phone to BHP & Co to try and find an amicable solution. I can’t see BHP & Co being too willing to engage with a CEO that proposed items 13 & 14 on the AGM agenda. Any trust between these parties is gone for good IMHO.
The disapplication of Pre-emption rights ! Highly insulting towards the likes of BHP & NCM. A shocking attempt to effectively re write the ethics of company law. BHP & NCM have failed to topple NM but I suspect this is about to get very interesting.
Think you’re wrong and NM is paying a game of poker. Block caving is a relatively new technique and fraught with risk. We’ve all seen what happens when a company attempts to take on a huge project with debt and all it’s effectively achieving is increasing the risks leaving shareholders with SFA. Solgold should stick to what it does best ....exploring and leave mine construction and production to the big diversified miners with proper balance sheets
Going it alone ....pretty self explanatory really once you’ve secured finance. As for buying in expertise .....doesn’t really reduce risks when block caving as RIO have found out. I’m more than happy for farm out agreements and JV’s .....the shares at 36p are heavily discounted because of the inherent risks attached. GGP on the other hand appear to be more than up with events because of a number of reasons ....JV , easy access to minerals, location and jurisdiction.
OT has caused many issues for RIO ....asides having to redesign the block caving plans due to unforeseen geology issues, the biggest issue has been power supply as OT requires more power than was currently being produced in all of Mongolia. Asides from this major issue that requires a new power station to be constructed they’ve gone into this project with two entities that do not have the financial clout to match the funding of RIO. Legal wrangles have caused lengthy delays from day one. It serves as a warning to Solgold in a number of ways IMHO
1. Jurisdictions with political risk and no real history of mining lead to a discounted value of projects
2. Geology can affect the block caving plans once you’ve started the construction, thus potentially adding hundreds of millions to projected costs.
3. Sharing a project with a financially restricted partner will hold you back
Despite these concerns I see the opportunity for substantial value to be added for shareholders but I view the idea of “going it alone” as unpalatable and fraught with substantial risks
GLA
I don’t think BHP would keep their voting intentions from the BOD and they can’t attend the AGM to vote on the day. The company registrar will probably be meeting with or speaking to the BOD today with an update on the current voting.
Think China wont be able to replace the Iron Ore that comes out of the Pilbara ...fact. We saw what happened to the price (up 70% ) when tonnage from Brazil was shuttered due to the dam disaster. Copper not an issue although accessing high grade Coking coal would be difficult
Solgold have until 11th January 2021 to upsize the FNV royalty to $150m USD. Not so sure BHP would be too keen on this. 1.5% isn’t too large in Royalty terms and they’ve lived with 8% royalties in the past at Crinum and Kestrel , but it would be damaging to where they sit overall on the cost curve. Will NM take the extra $50m in a months time or will be BHP get involved by either bidding or even exercising their options at 37p to provide additional funds for drilling ? Discuss
As I said this morning
“ Good news for the longer term but somehow I don’t think this RNS will ignite the SP today. The share price has been stagnating and it’ll take more than this to get it moving again ....sadly”
The problem we have is that most posters on this BB are overly bullish and expect fireworks from the SP on the back of every RNS. I’m bullish and have an extremely large position but we all need to be realistic and look at every RNS realistically. Think a number of posters need to curb their enthusiasm
We are all hear to make money but we need some patience and a dose of realism
On the subject of the half a bar @38p. Some old school institutional dealers aren’t always happy to use modern methods of trading such as algo’s, dark pools or even icebergs. They prefer to advertise their order or business as they feel it will attract a size buyer. I personally think in a stock like Solgold you’re better off scaling and order and working with retail flow , which tend to dominate this stock. There is NO conspiracy theory behind the reoccurring block and if I was to promote a theory I’d suggest it was a foreign client who’s rather naive and unaccustomed to the way this stock trades.
Let’s forget the idea of BHP ****ing about with their holding to keep the price down .....laughable