If you would like to ask our webinar guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund a question please submit them here.
Stackhigh.
I'm a bit confused where you've got the 3.15bn from.
Financial data (e.g. FT Tearsheet) and SOLG's own slides show the shares in issue to be c3bn.
Which is consistent with the May 2023 'Share Capital and Voting Rights' RNS. (I can't see an updated Voting Rights RNS).
Then Solgold Canada sub owns another 5%, i.e. 0.15bn, but I don't think these are in Treasury and not Issued or Outstanding shares?
Forgive me, but I tend to fact-check what redknight says vs. what the reports actually say.
Clearly the Qualified Persons only verify certain aspects of the report. As per the certificates at the start of the PFS document. Separate experts for metallurgy, underground infrastructure, surface infrastructure, environment, finance etc.
Section 2.2 has a nice table showing which sections each Qualified Person is responsible for.
Carl Kottmeier from SRK Consulting is the Qualified Person who has approved section 19 of the PFS, which refers to Sales and Marketing Contracts. Not all 8 experts that redknight has listed.
The PFS also says "the QP has not reviewed any of the Expressions of Interest received by SolGold".
I agree with the text around expressions of interest and offtakes. But have no way of knowing when these were received; report only says since the 2020 fiscal year.
Time for Solgold to address this, by end-May is my guess.
Hi addicknt
I'd question whether the current IPA still applies. Given SOLG didn't meet the spending obligations under it.
I know SOLG made various proposals for amendments etc...
... but I'd still prefer a revised IPA signed ASAP. Whether International, Chile or Ecuador arbitration.
1984 - Fawzi was Head of IR & Comms.
I also understand, from people he had direct conversations with, that he was involved in Financing / Corporate Strategy too.
Not just manning Twitter.
Sure, Fawzi had worked at a number of Investment Banks so given his experience, his remuneration wasn't small.
However, the phrase "pay peanuts, get monkeys" equally applies. Particularly now.
Tiny volumes. It's not the major investors running to the exits...
We're left waiting. And whilst I agree comms have been dire, since Fawzi Hanano left to be honest, we have to trust that lack of updates is because SOLG are working through credible finance offers. Or needing to delay until some items formally signed (e.g. IPA/Exploitation Contract ratified in Ecuador).
Yes, I 'follow'
An alternative view is the company is going through various options and negotiating the best possible deal.
Will try again...
Stackhigh - do you consider a sub-£300m MCap to be too high for a company which owns 100% of Cascabel and various regionals at different stages of exploration?
I'm sure SOLG management are working through a number of viable options re: financing. Sure, it is unlikely one of these is a bid of 60p+. But it doesn't need to be at the moment.
Get a cash runway of 1-2 years and show the phased approach is possible. That may force interested parties to act.
Stackhigh - do you consider a
1984 - precisely.
Huge/Wow UT? Am I looking at a different one? £163k?
Wait until the real buying begins.
1984 - TMX or redknight?
1984 - this is Solgold, you expect that level of clarity? ;)
Page 77 of 2023 Annual Report gives details of the performance conditions.
Make it a more realistic 65p sale price Scott and I'll happily let you keep your £10m profit from share options!
Three year daily average from 17 March 2023. Prob averaging 10p currently.
BUT, on a change of control event, I (cynically) expect the 3yr average will fall away, and be awarded based on the agreed sale SP.
(30m options at exercise price of 17p. He'll profit £5.4m at a 35p sale price).
A reminder of Scott's options; he is looking for MINIMUM 35p:
0 if 3 year SP is less than 25p
50percent if 3 year SP is greater than 25p
100percent if 3 year SP is greater than 35p
I can only hope an attempt to force an initial bid, to start a bidding war.
Ok redknight, I'll bite...
- current cash will be more like $7m. ($13m at end-Dec, reducing by c$3m+ a month).
- any offtake will, I believe, restrict cash solely for Cascabel. Still need working capital and funds for regional exploration/development
- "There are between 30 and 40 parties now in the dataroom" Source? Highly unlikely.
- your reference to p235 of PFS is still wrong. As I flagged before, the EOIs were different to offtake offers for funding. The offtake offers were "material" but nothing stated these were sufficient to cover initial or total capex
- your suggestion that, should an offtake offer be received to cover capex, the SP should automatically jump to the NPV value is completely ridiculous. Companies aren't valued at NPV at the pre-construction/construction phase, and aren't valued at what is expected over the next 40 years. What about the political, operational risks etc.
Despite redknight's constantly changing speculation, I'm looking forward to Solg's big reveal over the next 1-2 months. I genuinely think it will re-rate the SP. Significantly.
What a load of waffle. Can't be bothered to unpick some of the issues with what has been posted.
Former GFD? Wow. Worrying.
1984 - generally agree.
But capitalised expenses for the regionals are running at c$108m. A large amount of that will have been spent at Porvenir.
So potentially an IPO of Green Rock would more accurately reflect the value of the Porvenir exploration and MRE.
I think the points are that an IPO would require some capital, and also result in some dilution. redknight was arguing neither would be the case.
Is a better description 'diluting but value-creating'?
redknight makes his points with such confidence, and disdain for other views, that I genuinely question my understanding of what he is trying to say.