The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Hawkspear CGP can sell their Solgold shares whenever they like. Don't forget CGP got the Solgold shares as Irwin, Sangha etc swapped their Solgold shares for CGP ones as they didn't agree with NM's approach last summer. CGP wanted to package it up with the ENSA stake to make CGPna takeover target, the Solgold shares were a 'sweetener'
You beat me to it Ohwhatanight, yes Solgold has first refusal if CGP try to sell their 15% in ENSA not if CGP try to sell their Solgold shares. Hence why CGP were doing all of their restructuring to encourage a takeover of the whole of CGP as would be which would circumvent the first refusal agreement.
Interview with Henry Troya, the Vice Minister of Mining for Ecuador. Dated August 16th 2018.
https://gbreports.com/interview/henry-troya
Key bit for me from the horse's mouth:
"Investors are still put off by Ecuador’s windfall tax. Is this going to be eliminated?
The windfall tax for extraordinary earnings was our Achilles Heel since it was established by the Correa administration in 2009. We have seen that, when applied in other countries like Mongolia, it affected the mining GDP very seriously. Our windfall tax actually takes 70% of the extraordinary earnings when comparing the base price of the last 10 years and the commodity price during a high cycle. We introduced several modifications to this tax, yet we saw that the investment community could not understand why this was applied. So, president Moreno finally decided to eliminate it, and the process for this should be complete this year. This move has been very well received by the industry."
Personally, I believe that the move by BHP further supports that Ecuador is beginning to be seen as a place where the level of risk is acceptable and that they believe that this will indeed take place.
GLA and DYOR of course
Denver Gold Forum - Nick Mather presenting on Monday 24th September, 9am Colorado time. Webcast will be available on the 28th September. Historically has been a decent forum and presentation. Attendee list below, plenty of big players in the Gold space.
http://www.denvergoldforum.org/participating-companies/
Be interesting to hear tone and content given the recent developments.
https://www.denvergoldforum.org/webcast/
GLA
It's first refusal for the disposal of the 15% of ENSA shares that CGP own not their own CGP shares, hence why CGP were doing the spin co to encourage a takeover as it was the only way they could realise value for shareholders.
Hi AK, when I watched it I didn't think he was talking about price, more about cost to operate and extract/funding required etc, hence why it needed to be a big major to take this on... Hope I'm wrong and you guys who thought he was talking price tag are right, guess it's a glass half full Vs glass half empty personality that will dictate it eh, lol. Happy weekend all!
Thanks again to @pob, copied and pasted from ceo.ca:
"@pob Further excellent $SOLG $CGP update from the always excellent AFR (behind paywall). #ecuador
Summary - Rinehart has Solgold surrounded on three sides
...If "nearology" is the science of getting close to those with good geology, then Gina Rinehart's Hancock Prospecting is proving particularly adept in the case of rockstar copper explorer SolGold.
The Hancock subsidiary Hanrine Ecuadorian Exploration and Mining SA is SolGold's neighbour on more than 50 per cent of the Cascabel tenement's border, and controls acreage to the east, west and south of Cascabel.
...could Mrs Rinehart be willing to challenge BHP and Newcrest in a super-heavyweight battle for control of SolGold?
"Hancock has a standing policy that it does not comment on commercial matters," said Sophie Mirabella, Hancock Prospecting's general manager of government and media relations.
Ms Mirabella also declined to comment when asked if Hancock owned shares in either SolGold or its joint venture partner in Cascabel, Cornerstone Capital.
Should BHP and Newcrest's creep up the SolGold register ever turn into a full blown bidding war, they may also face competition from the world's biggest copper miner Codelco, which has locked up acreage on Cascabel's north-western border, plus has further tenements within five kilometres of SolGold's eastern and southern borders.
BHP's Ecuadorian acreage is about 12 kilometres south of Cascabel at St Teresa, while Newcrest has tenements that are about five kilometres east and west of Cascabel.
But exposure to SolGold can still be obtained through ASX listed resources house $DGR.AX DGR GLobal, which owns strategic stakes in several ASX listed juniors as well as several privately held and foreign listed companies."
https://www.afr.com/business/mining/rinehart-has-solgold-surrounded-on-three-sides-20180906-h1509s
Hi Monte yes he has been talking about defence strategies for a while now... I think he wants to avoid another Orbis gold where, I can't remember where I read it, I believe he didn't feel full value possible was realised. Posted the below earlier today in terms of the obvious things that the board have done to date, there will probably be others...
1. Newcrest's dilution rights are back down to 10% so, not that we would necessarily want it, Solgold could issue more shares to raise and dilute Newcrest down from their 14.54% to closer to 10%...
2. Newcrest must follow Board recommendation and 60% of non-Newcrest shares in a change of control transaction
3. The board brought in James Clare from Bennet Jones LLP to the Board - "James Clare has a corporate commercial and securities law practice, with an emphasis on corporate finance and mergers and acquisitions, focused on assisting clients in the mining and oil and gas sectors. His transactional experience includes domestic and cross-border public and private corporate finance transactions representing issuers and underwriters as well as merger and acquisitions transactions."
DYOR of course and GLA
Maybach they certainly could accumulate more but would need to alert the market for any 1% threshold passed above the initial 3% threshold required for disclosure. Therefore they could do another 0.9% without alerting the market. GLA
Interesting thoughts Hesiod. I've been reading into hostile takeover defence strategies and one thing possible would be for Solgold to buyout in exchange for shares... This would dilute BHP and Newcrest (and the rest of us) but also bring in the other 15% of ENSA. I reckon Irwin and Sangha would push for seats on the Board (as they did when they swapped Solg shares for CGP shares last year) as part of the deal but that wouldn't be a bad thing. Just a matter of whether NM and Irwin could get along... Warren has stated publically (see twitter) than they didn't agree on a few things.
It's a bit messy with us owning some of CGP (5.3% I think) and CGP owning 10% of us but would bring it all together and protect against one of the two major miners already on the register pushing to gain more than a foothold... Other's thoughts?
all my own musings of course...
Don't forget we don't know where all of the bought deal from last year have gone... We've not had holding RNS other than BlackRock... They could go to Tenstar who have 7% (but I believe they are allied with NM as they are also in most of the other DVR subsidiaries).. I've calculated I know where roughly 55% of shares are from the major shareholding document on the Solgold website... Where are the rest...?
Hi Mistermeister I've done some research in Guyana and it looks like they missed production guidance for the previous quarter and are in the process of cost cutting by laying off individuals e.g.
https://seekingalpha.com/article/4187695-guyana-goldfields-q2-miss-tests-investors-patience
https://www.stabroeknews.com/2018/news/guyana/08/27/guyana-goldfields-to-lay-off-80-workers/
I think it was a simple matter of them needing cash and BHP potentially waiting until they could see that was the case before approaching them... The Guyana Goldfields CEO was quick to point out an initial investment of $10m has brought in $35m which isn't bad going...
Just my own thoughts, DYOR of course GLA
Hi Shippy, I would be too....Solgold have been plugging this all over the place and bringing in Blackrock and JP Morgan etc and then, out of nowhere, boom BHP on board without NM knowing!
I certainly like the idea of increased competition, just wary of hostile T/O below a decent price. I see this move by BHP as a way of getting their foot in the door before potential re-valuation of the Company due to updated MRE and PEA which should significantly increase the tonnage and grade from what the previous RNS have been saying... GLA
where did you hear that lostagain? Solgold subdiaries have tenements that are next to each other, i.e. share borders, e.g. Blanca Nieves, La Hueca etc... The presentations on the Solgold website show a lot of them next to each other...?