RE: Redknight, defending the Share Price16 Apr 2024 18:30
Thank you for your fulsome and constructive response Eish.
From the time of the merger the plan was to sell SOLG...
Eventually they had advice that the PFS needed redoing.
I don't think there was enough cash to significantly increase drilling outside Cascabel.
You have to keep in mind that the previous CEO (ex BHP) was in the process of destroying the company through incom[etence...
Can you remind me whoi were the "major onvestors" who sold shares? Even Berry Street doesn't qualify.
They were in firced liquidation but IMO out of spite they dumped their shares in the market, doing great damage to the SP when the normal course of action would have been to ask the Nomad to dispose them in an orderly manner.
Basically once that destroyed the SP it was inevitable that SOLG would be dropped from MSCI, meaning that the MSCI tracker funds had to dump a total of c35 million shares.
However, at the end of May SOLG will be back in MSCI and they will have to start buying those back from mid May onwards.
Personally apart from not communicating enough at the start of his term of office I don't think Scott has put a foot wrong.
There is definitely much going on, e.g. the TEN firm EOIs for offtake funding.
And IMO the only thing holding back a steady upward progression is the 'non dilutive, non equity funding' that is coming.
Then watch the relief rally...
All will come to pass soon.
Good luck...