JV or a buy out29 Oct 2020 09:58
Quady, I still disagree with your opinion.
NM has to be seen as strong and determined, which he is in many ways, but to believe he can hold onto this massive animal is more of his dream than reality in my opinion.
BHP has to be his best chance of a JV with a good company, if he does not go with them then Solgold will be bought out, all the news in Ecuador is as good as you can get, there must be many majors trying to get an angle on how to get this for their future resources.
To borrow money for the length of time needed to get things up and running would cost a considerable sum, also at a higher rate as they have nothing except what’s in the ground, as I mentioned before there is the rub, if something goes wrong how do lenders get their money back? It’s not as clear cut as your putting it, JV with BHP who have been clearing old debts, stopping spending damn money, selling some bits off, why? Because if they need too they can borrow money at a much lower cost have the ability to furnish their debts.
Solgold have done fantastically well, but it’s too big of an animal for just one company.
Imo, have a good day and happy birthday for the other day.