The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I would have thought if the Franco Nevada deal was so bad, then you have to stop it, before it is signed, if Franco Nevada haven't completed a site visit, and there is no other feasible option other than a site visit how much time before the deal is signed, 4 weeks tops ?
if the point was true then they would need EGM before then to kick out the current board, sounds like horse ****e to me
all smoke and mirrors
L2, the PEA was done based on Copper @ 1300, page 4 of the latest presentation, is still stating
"*8% discount rate. $1300 gold & $3.30 copper USD"
http://www.solgold.com.au/wp-content/uploads/2020/07/SolGold_Corporate_Investor_JULY17_websiteupload.pdf
This hasn't changed, but expect the PFS to use different figures, anyone care to put a marker in the sand for PFS copper, gold & Silver prices ?
Quady, there was an update on better recovery figures, so assumed that was why we dropped from .3 to .2, yes my figures include the pricing of the inferred, what we need to remember Alpla is open in a north west trending line, as the current mine life is 55 years on what we know, what is the point in proving up more, and i think NM alluded to this in one of the QA sessions
Quady, drilling at Cascabel is done, the figures for the PFS will be taken form the current MRE
Mineral Resource Estimate #3:
• Mineral Resource of 2,663 Mt @ 0.53% CuEq for 9.9 Mt Cu, 21.7 Moz Au and 92.2 Moz Ag in
the Measured plus Indicated categories.
• Mineral Resource of 544 Mt @ 0.31% CuEq for 1.3 Mt Cu, 1.9 Moz Au and 10.6 Moz Ag in the
Inferred category
https://www.rns-pdf.londonstockexchange.com/rns/2405L_1-2020-4-28.pdf
Current values below
Copper 6,385.00 11200000 71512000000
Gold 1800 23600000 42480000000
Silver 19.24 102800000 1977872000
115969872000.00 Dollars
92775897600 Pounds
I would assume we haven’t had a bid for Solgold or just Cascabel, as the majors will have their own processes and procedures to follow, why would a major buy a resource of this size or company based on what is currently only the PEA, the majors will wait for the PFS, as this will bring more clarity to the asset, the majors do not need a BFS, as they will fund the development of the asset with their cash reserves
Yes a low ball offer could arrive on NM desk from a major before the PFS, but it would be dealt with contempt, why would NM except a low ball offer, if he wanted to, why didn’t he offer the company to BHP @45p when they brought 100M shares ?
Any why has NM set options out for 60p, because NM believes that was an achievable share price, with the delivery of the PFS and hopefully updates on the other properties Solgold is currently(hopefully) drilling we should see the share price increase Q4 this year
And if we do get an offer Q4 then hopefully there is more than one bidder
One thing that has been overlooked is the current arrangement with BHP, means that their votes will align themselves with the current BoD, and hence BHP votes are currently on NM side, come October this could well change
BHP 282,721,826 13.64%
20-18 - Cornerstone to Requisition SolGold General Meeting to Replace Entire SolGold Board
http://www.cornerstoneresources.com/i/pdf/NR20-18.pdf
BHP are on SOLGOLD doorstep
"BHP Billiton to enter Ecuador
BHP Billiton (AU:BHP), the world’s largest miner, will begin exploration in Ecuador having been awarded two concessions in Imbabura Province, close to where SolGold (LN:SOLG) is exploring the Cascabel copper-gold project. "
Quady, We all know that NM mentioned that the Tax implications would be horrendous for Solg, but having a dig around the only thing I can find is the following
Are there any transfer taxes or capital gains imposed regarding the transfer of licences?
The Organic Production Development Law modified the Capital Gains Tax Law, which previously stood at 22 per cent, which now applies a scale ranging from zero per cent to 10 per cent on the earnings obtained from the transfer of shares of mining companies.
https://www.lexology.com/library/detail.aspx?g=a64f43ba-37cf-4b1b-a523-2da91b2b8c48
So a sliding scale, but would assume a 10% tax bill for the transfer of the asset
French version here if you want :)
https://www.sedar.com/GetFile.do?lang=EN&docClass=12&issuerNo=00013027&issuerType=03&projectNo=03079210&docId=4754504
The drop dead date will be before BHP come out of their lock down(14th Oct ?), the PFS should hopefully increase the NPV of the alpla project, and hopefully by then we will have some drill results from the other projects
Less than 4 months for this, if we get to the end of the year without a bid it will surprise me, and hence NM is doing the right thing to prepare for production, and then we can all either get out, or wait for the returns come 2025