Member Info for rcgl2

Yes true Quad, but I feel it's taking on a lot of risk. I guess things might look a lot clearer if and when PFS and CFP are produced.

Quady, my concern about taking Alpala to construction is that it's a bit like saying you and I could build Crossrail. If we were given enough budget, we would hire in the likes of BAM, Kier, Skanska, Ferrovial et al. On the basis that TfL do not actually bore the tunnels and construct the stations themselves but hire in these contractors to do all the work.

But the problem is, it takes knowledge and experience to engage and manage such contractors doesn't it. How can you ensure that the contracts you are negotiating at the start are actually robust enough, are value for money, contain sufficient penalty clauses? Do you go cheap? Do you pay more for better experience? What bargaining power do you have behind you as a first time builder of a mine rather than one of the major mining companies?

If the build costs get out of hand and the contractors threaten to down tools unless you increase the spend, would Solg be able to threaten them with never being contracted on any of its projects again? BHP would be able to make that threat. If it was Solg, the contractor might say fine, but if this fails you'll be bust and won't have any future mines anyway.

Also what about the threat of conflicts? What if BHP and NCM were not best pleased and threatened the main contractors with being taken off their approved lists for future work if they tendered for Solg's contacts?

I'm not saying it can't be done, of course anything is possible and all majors had to start somewhere. But it's risky, and Alpala is not a straightforward build. If Solg was going to cut its teeth building a fairly straightforward open pit mine in an easy location, you would probably have to say this was a lower risk route to becoming a producer.

Alternatively, no one wants to buy this at 38p or above.

Unless I am misreading the circular, NM has 1.95m 60p options expiring Dec 2021, and that's all. He had 10m 60p options that expired worthless in Aug this year. The confetti options handed out to the management have now stopped, as per all the recent corporate governance updates. Therefore in 2020 NM only received cash compensation of approx $400k and no options.

I am not saying he hasn't feathered his nest from the companies he has been involved in in the past, and I'm not saying he is going to be hard up. But the pay structures have been brought under control somewhat, which is to the overall benefit of the company. NM's main interest is his 90m shares in Solg, not teasing out his annual pay for several years.

Also, we are not voting at the AGM for a pay rise for NM, as has been claimed multiple times on this board. The resolution is to increase the aggregate fees that can be paid to the board directors, since they have added several new directors and may add more. It's 400k to 600k in aggregate, across the board. It is not that each director is getting a "50% pay rise".

I had thought the insiders at CGP were going to subscribe the whole $7.7m... but according to their latest filing, the insiders are only taking 380,000 shares out of a total of 1,540,000 to be issued. I think Rosseau (Warren Irwin's fund) is an insider as well but isn't mentioned in the list here...

Proposed subscribers to the Offering include current insiders of Cornerstone, who are proposed
to subscribe for an aggregate of 380,000 Common Shares. Hugh Brooke Macdonald, President,
Chief Executive Officer and a director of Cornerstone, Dave Loveys, Chief Financial Officer and
a director of Cornerstone, Yvan Crepeau, VP Exploration, are proposed to respectively subscribe
for 10,000, 2,000 and 5,000 Common Shares pursuant to the Offering. As well, Greg Chamandy,
John Clarke, Beverley Evans and Colin McKenzie, each a director of Cornerstone, are proposed
to respectively subscribe for 100,000, 4,000, 2,000 and 2,000 Common Shares pursuant to the
Offering. Also, Maxit Capital LP is proposed to subscribe for 255,000 Common Shares pursuant
to the Offering.

Also the firms providing DMA access have to file suspicious activity and suspicious order reports. They file a lot of them. There is so much focus on this sort of stuff nowadays, the world has changed considerably from the pre-2008 days, and unrecognisably from the wild days of the 80s.

To be guilty of spoofing you have to place orders that you did not intend to execute with the intention of misleading the market as to supply or demand or price. You are of course allowed to change your mind and cancel a legitimate order. When someone is placing a very large block on the ask and letting it sit there for ages, maybe withdrawing it eventually, it's pretty hard to prove spoofing... It would be an ultra slow motion spoof. Easier to prove in the case of frequently or rapidly placing and cancelling orders, and trading off any ensuing price moves, a la the Hound of Hounslow.

HI Red, very clear thinking. Do you think this whole situation would be different if Alpala wasn't an expensive and time consuming block cave? Is the plausibility of NM's strategy stretched to its limits because of the amount of time it will take for Alpala to come to production (IF Solg took it to production)? If Alpala was a quicker and cheaper open pit, or if one of the other prospects such as Povenir was in the number one seat and Alpala was further down the queue, would NM's master plan be much more likely to deliver the results he thinks it can?

If Solg had offered 22 shares per CGP share instead of 11, would CGP have rejected it because they didn't want to end up owning a company with dubious corporate governance practices and low liquidity?

There is a story about Wittgenstein, where he once asked a friend why people assumed it was natural for men to think that the Sun went round the Earth and not that the Earth is rotating. The friend said it was probably because it just looks as if the Sun is going round the Earth. To which Wittgenstein replied "well, what would it have looked like if it had looked like the Earth was rotating?"

When I read Quady's posts I keep imagining him saying "well, what would it have looked like if it had looked like Solgold was going to production?"

Terrible RNS. I was expecting 100% gold, some diamonds, a cure for cancer and the secret to cold fusion. And all we got was 900m of 0.5%, outside the core. 20p on the cards by teatime. NM out!

It was said last night that the promised "exit points along the way" have not materialised. Possibly by our recurring nuisance. Regardless who said it, that is not the case. The SP hit 40p in October and 38p twice in the last month. Not bad exit points for anyone with an average in the 20s or lower if you really don't have the patience to wait a bit longer for higher returns.

Unless you're absolutely wadded, I would have thought the annual ISA allowance of £20k is plenty in terms of the initial amount you'd want to invest in a company like Kier, with no worries about CGT or any other taxes.

Dr Qu I was thinking the same as you, as I said in several posts. It was the tone of the letter that made me reconsider somewhat, as I said to addicknt... They really seemed to be laying it on with a trowel how important it was to re-appoint the current directors.

My gut tells me BHP and Solg are a lot tighter than is being publicly let on. NM did say how easy it was to work with them, couple of phone calls and their last placing was lined up etc etc. BHP must have been fully aware of his game plan when they agreed to their last funding.

They release a breakdown of votes for and against with percentages.

https://www.lse.co.uk/rns/SOLG/result-of-agm-hosfhxrqd197x7r.html

Interestingly last year pretty much the same percentage voted against the appointment of the 3 new directors. I wonder who that was. And an even bigger percentage voted against Brian Moller's reappointment. Quite a lot against him considering BHP were bound to vote with the board.

A bidding war against the Chinese for the whole lot? But maybe if they stay onside with NM they will have some considerable role to play in some or all of the future mines?

Zoros - thanks for your run down. Fingers crossed NM can unlock similar value enhancements here.

As I said, interesting to compare with Solg.

Haha yes guys, let's hope we will be rewarded for holding our nerve and not punished any further. At 75k down that really is brown trousers time, I'm not surprised you didn't put more in. GLA!

Half regretted buying around 90p when I was almost 50% down... now half regretting not doubling down when it was sub 50p. Not one for the nervous investor this.

Red if you think that's nuts, Tesla's mcap is more than Toyota, VW group, Daimler/Merc, BMW and Honda combined! Between them they make literally tens of millions of cars a year, while last year Tesla sold something like 400k.

It's priced as if in 30 years every single car in the world will he a Tesla. It's a mania of epic proportions.