Member Info for mattlilly

OK shippy I've sent the post I mounted at 14.34 below...

Yes shippy I'm about to send it to the company...

Fancy a Moretti at mine DBW to discuss a raft of Solgold issues...?

Such as...

16 August videocall - "strong CEO candidate, tying up the loose ends, 2-6 weeks

(46 days ago)

10 September response from Fawzi "With regard to the CEO process, this is in the final stages and we do hope to announce something very soon. "

(3 weeks ago)

2021 Annual Report, 29 September - Keith Mather said:

"When Nick stepped down and I was appointed Interim CEO, the Nominations Committee made the decision to go through a comprehensive global recruitment process, knowing it would take time to recruit the right CEO.
The Nominations Committee viewed the appointment as the most important current issue for the development of SolGold. I am pleased to say that we are now well advanced with the recruitment process and hope to be making an announcement in
the near future."

However, if it is "the most important current issue for the development of SolGold" its important to get it right and therefore it should have a material effect on the share price when he/she pops out...

(Bit like the gestation period for a pregnancy...)

I'm still hoping its Craig Jones...now that WOULD be BIG....

As mentioned below and reproduced from the June 2021 Accounts:

""In September 2020 SolGold plc transferred its investments and associated intercompany loans in ENSA (85%) and SolGold Ecuador S.A. (100%) to a newly established wholly-owned subsidiary called SolGold Finance AG."

I've scoured the November 2020 Accounts and the MD&A....

There is no mention anywhere and the Loan transactions are not included in the Balance Sheet nor noted...

Hmmmm

So I looked at the Half Year documents and it starts to get interesting...

They just show A Consolidate Balance Sheet with no mention in the Accounts or the Notes of Solgold Finance AG...

Now while that does not show the intracompany liability because it is netted out, you would think there would be a mention somewhere of Solgold Finance AG, as it has 'owned' the Cascabel investment since September 2020...

But in the June 2021 Annual Report there is a Consolidate Balance Sheet for Company number 5449516

And a Company Balance Sheet for Company Number 5449516

This is the Companies House number for SolGold PLC (formerly Solomon Gold PLC)

How can they be one and the same...?

The 'Company' has the Solgold Finance AG Loans etc...

So not surprisingly I checked back to the 2020 Annual Report and while the same conundrum exists, i.e. Consolidated and Company accounts for number 5449516, the 'Company Accounts show no massive Loans etc.

So that means the Alpala Assets and Loans to balance out were transferred during Y/E 2021, so why is this not mentioned anywhere in three consecutive MD&As, a Half Yearly report and two quarterly reports.

Isn't it important to announce the establishment of Solgold Finance AG and its ownership of the ENSA/Alpala assets?

So finally I checked the September 2020 MD&A and all the RNSs since and guess what, there is no mention anywhere of the creation of Solgold Finance AG as a layer between SolGold plc and ENSA, including for what purpose...

In short it just 'pops up' more than a year after its creation...

And all the Accounts since carry this statement:

"The Directors are not aware if any other significant changes in the state of affairs of the Group or events after the reporting date that would have a material impact on the consolidated or Company financial statements."

Now wouldn't you think a loan by SolGold plc to a subsidiary totalling 167,399,767 at an interest rate of 3.5% would have merited some sort of statement before a footnote in the year before September 2021, especially as Solgold Finance AG is domiciled in an 'offshore' country with all its separate governance, reporting and tax consequences...?

I believe we're owed an explanation ....

Thats right. Thats why its not on the official list...so 17.67%

Autobots at it again...they're like soldier ants...

Algos account for 67 of 83 trades this morning...they're just a nuisance...

They account for 75% of today's 296k volume...

And no I'm not including AT trades...

Good point but if they're under 3% what can you do...

Meanwhile, here's the list of major shareholders from the Solgold website

No Samuel...

https://www.solgold.com.au/wp-content/uploads/2021/07/2021.07.01-Key-Security-Information.pdf

Best

RK

I included Tenstar...

Give me a break mm

He got a severance payment of $477k

He's only a NED
He was almost booted by the major shareholders DESPITE his so-called MAJOR holdings (which were the only thing that saved him...
He 'controls' !7.67% (3.96% plus 4.91% plus 8.9%)

He can't even block anything...

The devil is in the detail...

Looks like we all missed this in Note 10 to the Accounts:

"In September 2020 SolGold plc transferred its investments and associated intercompany loans in ENSA (85%) and SolGold Ecuador S.A. (100%) to a newly established wholly-owned subsidiary called SolGold Finance AG.
Upon the transfer of the investments and associated intercompany loans from ENSA and SolGold Ecuador S.A. to SolGold Finance AG, a new back-to-back loan agreement was implemented between SolGold plc and SolGold Finance AG. The key terms of this new back-to-back loan agreement include:
• 10-year loan maturity period
• 3.5% annual interest rate, calculated daily
• Interest accrues and is due on or before 10 years, or thereafter by agreement between the parties
• SolGold plc has the ability to call the loan for repayment at any point on or before 10 years from the date of issue
• SolGold Finance AG may prepay the whole or any part of the advances made by SolGold plc at any point without notice, penalty or bonus"

Opening Balance June 2020 NIL
Reallocation of loans 173,497,993
BLA offset (15,619,579)
Advances in the year 5,001,463
Interest accrued in the year 4,519,890

Closing Balance 167,399,767

Do you think NM is going to be happy reporting to the new CEO...?

We have a good relationship with the Ecuadorian government so I wouldn't think circumventing tax laws would be a smart move.

All the profits can be paid as dividends up the pipe of course...

It seems to me as if AG is in the nature of a SPV to insulate the parent from all risk....

In which case it is an excellent vehicle for debt funding Alpala.

Also, if my source is correct, they already have half a dozen prospective household name partners for the small projects, which also sit inside AG...

And finally it strikes me that if a major wanted to buy Alpala they no longer need to buy Solgold plc, which leaves them free to develop the 'string of pearls in the other four subsidiaries.

And finally, if Cornerstone don't want to co-operate, the prospective buyer could simply buy AG and circumvent CGP's objections/resistance...

Neat!

Apologies...still half asleep...

Apologies...

Read my later post. If you wee correct why isn't NM on the Board of AG?

Ingo is the man pulling the strings IMO...that's why hes on the AG Board.

This move is SOOÒ clever...it means AGis the holding company for Alpala, but also all the small projects...

While I get the tax argument, if it was just for that reason it would irk the Ecuadorian government, which Solgold is not going to do.

So I think it is for at least four reasons

1 As a defence mechanism, ringfencing Alpala

2 It puts an extra layer between Alpala and the major shareholders

3 It makes it almost certain that the majority if not all the financing of Alpala will be by debt, with the balance by streaming or whatever.

AG's shares will not be quoted on an exchange I.e. it's not a plc, so any equity finance would have to come from Solgold and be lent to AG, so that's unlikely

4 It means a determined buyer of Alpala would have to buy ENSA, or AG, or pay a much higher price for Solgold as a whole.

En peasant, it keeps any monetization of the small projects in AG where the funds can be passed across to help finance Alpala and...
It means the other major subsidiaries of Solgold (I.e. Green Rock, Carnegie, etc. can be managed at arms length...

This must be Ingos idea...it keeps NM OUT of the picture for Alpala...its a doozy!!!!

IPO

If that were true Orthern, they would have consolidated them under Solgold Finance AG, instead of leaving it in Green Rock...

I still think it's best to IOO Green Rock as a way to monetise...

You are joking DBW...surely...?

Bubble...its the uncrossing trade that happens as MMs balance their books at the end of the day...

"An uncrossing trade is where buyers on the bid and sellers on the ask match together in a single trade at the end of an auction period. The uncrossing trade shows up with the trade code “UT” on the London Stock Exchange.

An uncrossing trade will occur at the end of an auction’s call period if there is a match between the prices of both the bid side of the market and the ask side. It is the closing price for the auction on the LSE.

For example, if there is a price where both the seller and buyer can be satisfied, then the auction will disclose an indicative uncrossing price."

So to me it is very bullish because it suggests buyers were holding out all day and maybe for the last few days and then got caught out because of the sharp rise in the gold price triggering a 5% rise in SOLG in the last two hours of trading (coinciding with the time the gold price rose from $1721 to $1764 to break resistance at $1750...

It might well also presage a RNS tomorrow as the Colonel has suggested...