Member Info for mattlilly

Bozi

Unless you're prepared to reveal your true position and intent on here, stop trashing the share price...

And Jezzoo...there is nio chance of insolvency:

"Insolvency is a term for when an individual or company can no longer meet their financial obligations to lenders as debts become due."

There are any number of ways to avoid that, such as stretching creditors, short term borrowing from the bank, a modest cash raise, selling off assets (e.g. a stake in Cascabel); streaming deals; etc.

Now it may not be exactly propitious to raise funds right now, but there is a price for everything with a company that has the undeveloped resources we have.

If Solgold was that desperate it could even approach BHP directly and see what price they would pay for the shares which, if it became public, would immediately trigger a bidding war...

May I repeat...this is NOT a Sirius. We have one of the most strategic and demanded metals on the planet, probably enough in all our prospects to fund any excess deman that will be created over the next few years, entirely on our own.

Sirius was trying to mine polyhalite and in the end nobody would lend them the money needed to start the mine.

If SOLG was "the hottest takeover story in town" and has repeatedly been talked up since as a takeover target by several reputable journals, you have nothing to fear except Armageddon or your own impatience and selling out too soon.

For many of us this has been a very long journey...it has required nimbleness at times, plus a steadfast belief in the ultimate payday...

I remember when ATYM hit 80p and everybody was ready to jump oiff the building...I filled my boots and sold the last at 270p...

Thats why we are now fully invested again, but if there is a modest rights issue I am confident enough to find some more threepenny bits down the back of the sofa...

Good luck all and a snovice would say...keep the faith...

PS thees no sign anywhere of Nick panicking and together with DGR etc they have lost £75 million on paper since April...

14th August - Now that BHP has the chequebook out for a big copper deal, the spotlight has turned on other potential targets in the sector.

But the one in the analysts’ lists that caught Street Talk’s eye was SolGold, which is based in Brisbane, listed in the UK with about a $1 billion market value, and has a following among Australia’s resources fund managers and analysts.

Unlike BHP’s current target OZ Minerals, SolGold is attracting headlines for all the wrong reasons. The company lost its new CFO after only a month or so last week, butted heads with some shareholders over a pulled equity raising in July, and is short on near-term cash.

What SolGold does have is a big and promising copper/gold/silver project in Ecuador, called Cascabel, that it is trying to develop at a $US2.7 billion ($3.8 billion) pre-production cost this decade.

If all goes to plan, SolGold reckons it could mine Cascabel for 26 years at 210,000 tonnes of copper equivalent a year (about the same as BHP’s Olympic Dam mine), and generate $US14.4 billion cash flows after tax, based on copper at $US3.60 a pound. (At recent spot prices, it would be $US16.3 billion in after tax cash flows, according to SolGold’s presentation to fund managers dated last month.)

While SolGold couldn’t raise equity at the drop of a hat last month, it’s not because it doesn’t have deep-pocketed backers. Quite the contrary.

SolGold’s two biggest shareholders are Australia’s BHP and Newcrest Mining, with toehold stakes worth 13.6 per cent and 13.5 per cent of the company, respectively.

With SolGold reported to have only enough cash to see it through to the end of the year (after scrapping its recent $50 million top-up), there’s bound to be a time in the next few months when its two big Australian shareholders will have to decide how much they want Cascabel.

If it’s a bit, then the two shareholders will have to tip into an equity raising and try to maintain the status quo.

But if it is a lot, like some analysts suspect, then we could see a pair of Australian heavyweights in a ding-dong battle.

The company’s annual general meeting, slated for November, is a key date to watch.

At 30 June they held 5.52% including all 'instruments', which was an increase on

20 June when they held 5.31% of which 0.44% or 10220227 shares was stock lending...this would either be for shorter to cover their position or to help market makers balance their positions if they were short...

The comparatives for previous dates were:

1 Dec 2021 5% of which 0.39% (c8,951,095) stock lending

31 Aug 2021 5% of which 0.39% (9,007,168)

23 Aug 2021 5% of which 0.26% (c6,004,778)

18 Aug 2021 same

11 Aug below 5% in total, no details

3 Aug 2021 5.01% of which 0.53% (12,081,983)

etc

So although their stock lending only varies between 0.2^% and 0.53%, they are clearly quite active at the margins.

Their holding of 5.52% at 30 June 2022 was their highest for some time...

Stake taken by Assore Holdings or direct bid by Sumitomo would do nicely...

We won't be Siriused...completekly different ballgame...wasn't even potash...polyhalite...

Try this...

Sumitomo Corp has a 26% stake in Oresteel, which owns a controlling interest in Assore Holdings which has a 50% stake in Assmang.

Assore Holdings has increased its stake in Atlantic Lithium to 23.79% in April 2022.

Vincent Mascolo recently died. He was the CEO and founder of Atlantic Lithium.

Vincent was also a best buddy of Nick Mather and cofounded Solomon Gold with him.

Vincent was also a NED of DGR Global until 2021.

He founded Ironridge Resources, which spun off Atlantic Lithium a few months ago.

DGR Global owns 24.4% of Ironridge...

DGR Global owns 9% of Atlantic Lithium

So maybe the untimely demise of Vincent Macolo has triggered a determination by Nick to pull everything together...

Sumitomo Corporation, a subsidiary of Sumitomo Group, has a market capitalisation of $17 billion...it has a South American subsidiary and a commercial office in Ecuador...

So it seems they are putting together a portfolio of mining companies in various critical metals, including nickel, lithium and maybe now copper and gold...

They could swallow Solgold for small change...

Am I close....?

Lunch...if that was always true, why did they invest so long before that stage...?

Indeed they invested before the PFS was completed and their funds didn't even go to Cascabel...

"The proceeds of the subscription will be used by the Corporation to advance the Company's 100% owned Porvenir Project located in southern Ecuador."

They paid 42p so was it a 'foot in the door'...?

And Valuestione were introduced under Nick's regime...

They could have 2.99% by now...not enough to secure a bid but a good starting point and I expect Jiangxi have limitless funds at their disposal...

Here are Valuestone's targets:

Geographical Focus:
-Management teams and holding companies located in the US, Canada, UK, and Australia
-Target assets primarily located in politically and economically stable areas.

Types of Natural Resource:
-Precious metals (gold, silver)
-Base metals (copper, molybdenum, zinc, lead, tungsten)
-Other (iron ore, lithium, graphite, potash, phosphate)

Types of Investment:
-Equity
-Convertible debentures
-Royalty/streaming
-M & A, restructurings
-Capex financing

Stage:
-Bankable Feasibility Study Stage
-Construction Stage
-Operational stage

That makes a lot of sense DBW...who's to say that Jiangxi wouldn't EITHER counter a first bid by say BHP or throw in a lowball, expecting a counter and then wade in with a knockout bid at say £1.25...

Oh and Talatum why is there this expectation that BHP would be difficult to match?

They only have 13.7%. If another predator bought Newcrest's stake they would also have a starting 'pot' of 13.7%...indeed c23% if they bought Blackrock and NORGE as well...

Right now all options are possible. Just because BHP have been creating mayhem doesn't make them the favourite...far from it...surely the Board would favour almost any other bidder at the right price...

And Darryl has 10 million options that say yes...

Food for thought...

https://lse.swingtradebot.com/equities/SOLG:LSE

UT 349,023 at 19p excellent!

DGR sat at a 21 month low but if you ignore the COVID 'bottom' in March 2020 they are at a 6 year low...

Why is Nick apparently so relaxed...and even bullish at his recent presentation...?

And Warren...

TSX price 19.79 albeit on no volume...

CGP hit a 21 month low of $3 on Monday before bouncing to $3.50...could be forming a bottom...expectations...?

https://www.kitco.com/news/2022-09-01/-We-re-back-to-2015-Soar-Financial-Group-s-Kai-Hoffmann-on-a-bleak-junior-resource-sector.html

"We're back to the 2015 ... the G&A financings just to keep the lights on," said Hoffmann.

"I guess if you wanted to make it a bull case, things are getting pretty," said Hoffmann, noting that senior gold miner Newmont has a dividend yield of 5.4%.

"Talk about cheap. I don't think I've seen that in the last 14 years I've been in the sector," he said, adding that dropping energy prices could further benefit the miners if gold prices don't retreat much further.

To adapt Hoffmann observed that the junior sector is pulling back, spending less and guarding what cash they have. The juniors are "...doing what they've always done. They're canceling financings. They're decreasing the amount of drill rigs they're using. They're just...waiting until this is over."

Copper and gold recovering some lost ground...

Copper now pushing $3.44 needs to break that through strong resistance at $3.53 before %43.59 and $3.69 then we're off to the races with no significant resistance until $4.

Tight SOLG spread at 18.86/18.90 is still 6% above the floor this morning...

A UT above 19p today would be good...

Sorry Dave but I think you're off the mark there...

Any prospective bidder would need NCM, Blackrock and Norge to sell to them and in my opinion that would take a minimum of 75p..especially if BHP was the buyer...

I still expect a bidding war and a final takeout after countered(s) of between £1 and £2...

A pretty solid day today...bottom being formed or shorter closing for the weekend...?

Cheers mate...

It wouldn't surprise me...the SP has slipped back a bit but thats healthy and maybe to be expected on a friday, but 19.80 was paid...

Its hard to catch a falling knife and you can never expect to buy at the bottom and sell at the top...but it looks like you've been really smart today...

AGM in November..."the Porvenir project Pre-Economic Assessment ("PEA")...is on track for completion by year-end" and "the next milestone(s) in the form of delivering the PFS Addendum (targeting Q4 2022)..." on a similar timescale...

Markets are always quiet during the summer and that doesn't help when markets in general or a particular share are under pressure, because they won't be supported by significant buying interest...

But as professionals return to their desks in September and look for where there is value, surely SOLG is a no brainer...all we need, other than news, is a renewal of the 'takeover' story...

19.60 paid...now 10% off the 17.78 bottom...

Current price 19.24/19.42 but somebody has just paid 19.51 for 100k...

Now up 6% on the day and 9% on today's bottom...