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Fully aligned with that thought process Bozi,
See previous posts
10 Oct 2022 17:44 : Tax Hypothetical
24 Nov 2022 09:47 : RE: Irwin tweet
Thing I don't get however is how much actual sway and insider knowledge does Irwin actually have? His tweets imply he knows something but surely if he knew something it would have to be disclosed via RNS. Whilst I note and read his tweets with interest, I treat with some caution for the above reason and I suppose only really give them any attention at all because of his perceived 'expert' status and experience. We all know however how perception of knowledge is not always closely aligned to actual knowledge.
@orthern. Or.... SOLG has nearly £100m in the bank to continue drilling.
I get that most are annoyed/ frustrated at the distressed share price, I am too but don't think it is as black and white as we sell all ASAP or we are doomed!!
I would love for us to Sell SOLG at fair price, so anywhere around the 70-80p mark estimated for Cascabel. However a big part of me would be gutted that (at a guess) £50-100m has been sunk over the years in other tenants and various back office costs for non Cascabel so why would we want to sell all of Solg at coat price for just one of many assets.
The tenements in themselves are worth money, if further drilling discovers more assets then SOLG gets back to being an explorer
I'm certainly no M&A expert, or legal expert but if I were SOLG I would setup a spin off company for discovery, issuing new shares to existing shareholders with pretty much zero value. Sell all of Solg to minimise tax implications of just selling part (IE Cascabel). If buyer attribute no value to other tenements, then fair enough, they don't want them so as part of the sale transfer tenants to spun out company... Then problem of funding arises for drilling so buyer loans SOLG £50m to continue drilling with a clause that states they have first refusal on any discovery.
Probably cloud cuckoo land stuff and expect people to rip to shreds, but not heard anybody really talk strategy beyond the next few weeks / months here apart from take to production/ joint venture and surely something along these lines is feasible?
So if I were a buyer looking to purchase Solgold shares today, for approx £400m I'd get for around £100m cash once various fundings go through. ENSA for large part of Ecuador, 1 bone fide tier 1 discovery oin Alpala, plus test of Cascabel, plus others....nice ;-). Seems way to cheap in my book if I'm honest and don't understand why we are not already double this price tbh
Maybe he is Massive, but only an idiot would believe what they see in board such as this on its own. He has in fact posted many useful factual pieces / articles that can be used for the smart investor to make up their own mind along with other sources
Thanks LunchMoney for bringing the topic back to Solg, with some objective and quantitative info even if it is an estimate. Starting to lose track of the other assets here due to i)board disruption ii) recent merger focus and Cascabel value centric and probably more importantly iii) lack of any real news/progress around other assets.
Whilst the merger is certainly exciting and a catalyst, my hope is that Solg is a long term investment with opportunities in over 70+ tenements and thinking the next few months / years even will determine if Solg can hang on to everything and spin multiple plates vs letting assets go for more strategic value. For what its worth, I'm convinced that at least one other tenement is going to be similar in size to Cascabel in the future and there is a good chance there could be a significant asset hasn't even been rock sampled yet.
Mean this with the greatest respect, but I have come on here to talk Solgold and yours (and others to be fair) talk makes it very hard to quickly digest actual discussions about the company.
Why not join an online chat forum related to many of your posts please.
Include to agree...my opinion (please don't shoot down those that clearly don't tolerate opinions - I am entitled to one...)
-Funding is pretty much in the bag... for what however we don't know (short term cash flow, fund to sale of asset, build phase of mine?)
-Would be extremely surprised if any full funding to move towards build phase is done given current market conditions and PFS2 still to be released
-Off take agreements support my view they are still planning to take to production, however, it also supports any sale if agreements show the viability of upfront CAPEX investment
- Personal opinion, whilst I hope they take it to production, (would be a great 10 year down the line revenue for my pension and yes I can wait at least that long as I have over 30 years till retirement) I actually think everything is now positioned for a sale of Cascabel.
-Darryls comparison of value JUST BASED ON CASCABEL supports this in my opinion
-Then the problem becomes what to do with any tax issue from sale (see one of my previous posts that also welcome thoughts on)
Based on current share price
CGP : £80m or approx $120 CAD
SOLG : £375m
20% new share issue of £375m = £75 m (round to £80m)
Solg shares diluted by 20%
CGP sells its SOLGS shares for £30m, loans them to SOLG.. once friendly merger complete is there a need to even pay this loan back??
If not, net cost to SOLG becomes £50m, for that we get the 15% ENSA stake, and any other CGP type resources (not familiar to know if they are worth much)
In terms of dilution, yes we are diluted by 20% but does the £30m + 15% ENSA value + any other CGP assets make up for that?
Added bonus BHP and Newcrest are diluted by approx 1-1.5% (according to the finance guy)
Another point, if CGP do loan the £30m pre- merger, SOLG can elect to pay 20% of the deal in cash (so £16m)... they could in theory use CGP's loaned money to pay for that (lol) with the benefit of, reducing the dilution due to the current distressed share price.
Welcome thoughts if the interpretation above is correct, struggling to see anything not to like here. What have I missed?
Most interesting point around 22mins in I don’t think anybody has yet called out
“With this transaction we have an option for short term funding” referring to Cornerstone selling their shares for $30million and loaning to Solgold prior to merger.
Then goes on to add which is the most exciting bit
“But there are other options which are very well progressed and we expect to be able to say something on that shortly”
Is funding near enough in the bag?
Random hypothetical thought based on a few comments of any potential sale of Solg as a whole vs just Cascabel.
What would prevent a full sale of Solg to bidder…
New company spun up with nominal shares distributed to existing shareholders
As part of the offer for Solg, bidder offers to dispose of rest of assets for £1
Net effect, bidder buys all of Solg. It for price of Cascabel.
No tax implications
Shortfall of value for rest of portfolio passed to shareholders of newCompany.
As you can tell, I’m no tax expert but does anyone know if this is even feasible?
Hi Buddy5,
I really think you are missing the point of some of the long term investors, according to the investor call, this is a 50-100 year mining operation. Todays, tomorrows share price is irrelevant to me, I'm thinking 5-10 years (unless bought out)
GCPoppa - https://presentations.investormeetcompany.com/conferences/036e1b4d17e2/bigroom
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