Member Info for schlemiel

It doesn't work that way mate. If only it did. If it ain't economic to extract, it ain't extracted. Simples

There's a subtle buyer here. I thought we'd see a hefty sell off but no, we're seeing decent interest at 5.8p. I wonder if someone's got a sniff of news?

https://twitter.com/seeingmachines/status/1340900024864092162

Cryptic, as ever. I'm looking at the windshield but cannot see anything of note.

add - Do you know if concert party arrangements have to be publicly declared ie a market announcement or can a concert party act in secret before acting?

Moreover, how do we know that an informal understanding (does this constitute a concert party or must this arrangement by constituted by a formal, legal arrangement?) between all three parties (NCM, BHP and CGP) doesn't already exist which can then be used to actually deter a bid from an external bidder?

GM driving the take-up of Super Cruise to monetise this service can only see its inclusion rise going forward. That can only be a positive for SEE assuming of course we are still the sole supplier of eye-tracking to GM

https://seekingalpha.com/news/3645355-gm-lands-higher-price-target-from-morgan-stanley-on-connected-fleet-potential

I bet the majors can smell state subsidies and public funds a mile away now the EU appear to have a Greenland focus

Greenland relevance - snippets

HTTP://www.ies.be/files/IES-PB-The-Geopolitics-of-Supply.pdf

The Geopolitics of Supply: towards a new EU approach to the security of supply of critical raw materials?

July 2020

1 -

'In addition, the Union has established raw material-focused dialogues with certain (potential) suppliers, such as China, African Union countries and Greenland, and with other major
CRM importers, including in a trilateral EU-Japan-US framework.'

2-

'Although opportunities should be explored globally, nearby CRM-rich regions, notably Africa and Greenland, should be prioritised, given the strategic advantages of shorter supply chains and the risks posed by ongoing Chinese activity there.'

3 -

'The Union should also re-energise its relations with Greenland. The 2015 EU Denmark-Greenland Joint Declaration acknowledged the territory’s potential role as a raw materials supplier for the EU and recognised the importance of bilateral cooperation in this regard.34 Given Europe’s growing CRM needs and the importance of mineral resources for diversifying Greenland’s economy, this area should be the partnership’s focus for the 2021-2027 period'

bbb - no problem fella

Don't wait for the inevitable. Take the loss, always and buy shares in a company with prospects. SOLG, JAY, SEE, FOG. There are so many decent, viable companies out there. Why hold shares that cause distress, worry and threaten your portfolio?

I owned HUR years ago until I realised their assets at lower oil prices where uneconomic. And the balance sheet's been destroyed by the debt which has the capacity to destroy the shareholder claim. The creditor will have no choice but to take control by converting

'This should include our work with Overseas Countries and Territories, many of which are also rich in resources – like nickel in New Caledonia or rare earths in Greenland. We are determined to engage the work and support potential projects in these regions.'

'support potential projects'. Funding

https://ec.europa.eu/commission/commissioners/2019-2024/sefcovic/announcements/speech-european-raw-material-alliance-kick-meeting_en

JAY were approached by ERMA to join the alliance. I didn't know this. I thought JAY applied to join ERMA. We must have something ERMA desires and that makes securing funding for our projects far, far easier

https://www.londonstockexchange.com/news-article/JAY/bluejay-mining-joins-the-erma/14764599?lang=en

The Danish government has taken an equity stake in LSE listed JAY (one of my stocks) so western governments aren't averse to taking equity stakes in listed companies if they deem the company to be investment grade

From Hannam note dated 14 Dec 2020. Two offtakes to come, one with a funding commitment?

'Offtake discussions are ongoing with a large multinational trading company, and we note the company “anticipate[s] reaching a commercial [offtake] agreement very soon”. Bluejay expects the agreement to cover a minimum of 200ktpa and potentially up to 300ktpa, roughly 2/3 of Dundas’ annual production. The combination of an Exploitation Licence and Offtake deal would give a solid platform to explore various project financing options, in our view.''

'There is also the potential for an offtake deal to come with a funding commitment, allowing JAY to accelerate the ongoing optimisation of its PFS and commence a full Bankable Feasibility Study'

If we take Hannam's note in trust then that's two commercial-monetisation pieces of corporate news to come plus funding from EU development funds due to titanium being placed on the CRM list? And maybe more EU funding if JAY install sustainable sources of energy provision at Dundas?

I'm trying to see the downside here. I have shares in other companies which have downside risks plus upside but with JAY the only downside I can see is fluctuating ilmenite prices though that's a given for all natural resource companies

'will not constrain the debt capacity of the project. Debt financed construction for Alpala

Over the last year in Toronto, SolGold’s shares have traded in a range of 19¢ and 72¢ per share and at presstime in Toronto were changing hands for 66¢.

The junior has about 2.1 billion common shares outstanding for a market cap of about $1.4 billion.

end

For its part, Franco-Nevada said it was delighted to participate in the Cascabel project, and president and CEO Paul Brink described Alpala as “an exceptional orebody and one of the most attractive block cave development projects globally.”

SolGold updated the resource estimate for Alpala in April, outlining measured and indicated resources of 2.66 billion tonnes at a copper-equivalent grade of 0.53% and another 544 million inferred tonnes grading 0.31% copper-equivalent. The deposit remains open at depth to the north and northwest.

It certainly hasn’t been clear sailing, however. On Dec. 1, SolGold announced it would not be able to complete a prefeasibility study as planned in 2020. Apart from delays caused by the global pandemic, the company explained that new geotechnical information has necessitated a redesign of certain underground infrastructure to a location outside of the cave footprint and also said it was introducing changes to the mine design and development and mining production schedules.

As part of its optimization work, the team is also investigating improvements to metallurgy; seismicity studies to refine design of the tailings dam and processing plant sites; and sustainability improvements, including the option for hydroelectric power supply.

The deposit, 180 km north of Ecuador’s capital of Quito, lies in the northern section of the Andean copper belt, known for producing nearly half of the world’s copper.

According to the company, Alpala has produced some of the greatest drill hole intercepts in porphyry copper-gold exploration history, such as hole 12, which returned 1,560 metres grading 0.59% copper and 0.54 gram gold per tonne, including 1,044 metres grading 0.74% copper and 0.54 gram gold per tonne.

Once developed, Alpala will produce an average of 150,000 tonnes of copper, 245,000 oz. gold and 913,000 oz. silver in concentrate per year over 55 years. During the first 25 years of mining, average annual production is forecast to be 207,000 tonnes of copper, 438,000 ounces of gold and 1.4 million oz. of silver.

As for the AGM, “it was really just Nick the vote was against,” the analyst said, “and there weren’t enough votes to get him out. Nick’s a successful and self-assured guy and has some great successes and some people don’t like him for that.”

cont.......

“The big companies don’t like royalties because they take value away at a project level,” said one mining analyst who covers the company who requested anonymity. “But SolGold’s argument is they’re trying to maximize SolGold’s shareholder value and it’s very dilutive to give equity. The royalty deal preserves the equity component for equity holders and they haven’t realized the full value yet for the project … and Franco-Nevada are going to be partners and that’s not necessarily a bad outcome.”

“I’m never a huge fan of royalties but sometimes you don’t have a choice,” he continued. “Cascabel is a huge project and if their equity price had been higher or someone would offer them a higher price they would have taken it.”

What’s more, SolGold has made big strides on the exploration front in Ecuador in the last twelve months, the analyst said. In addition to the Alpala deposit at the Cascabel project, SolGold is exploring and assessing 75 regional concessions across 14 provinces in the South American country. Recently the company has released solid assays for its Cacharposa copper-gold porphyry discovery at its Porvenir project in southern Ecuador and at the Tandayaa-America porphyry copper-gold target on the Cascabel concessions.

“They’re doing great, they’re finding new porphyries and that’s part of Nick’s vision and the team he’s assembled and that value hasn’t been realized yet and you can see where he’s going with it and that’s not part of any royalty agreement. An equity raise would have diluted that stuff as well.”

cont......

Calls for the board’s replacement came shortly after Cornerstone rejected SolGold’s second hostile takeover bid. (SolGold launched its first disclosed all-share bid for Cornerstone in March 2019 and a second on June 30 2020. The second bid valued Cornerstone at about $140 million (US$102 million).)

Under SolGold’s financing package with Franco-Nevada revealed on May 11, the first US$100 million in funding gives Franco-Nevada a perpetual 1% net smelter return royalty (NSR). The agreement can be upsized by US$50 million to a 1.5% NSR within eight months of the agreement. In addition, SolGold and Franco-Nevada signed a US$15 million secured bridge loan at a 12% interest rate for a four-month period with an option to extend the maturity for another four months.

Ingo Hofmaier, SolGold’s executive general manager of corporate finance, noted in a press release announcing the royalty deal that the company had “received and considered a broad range of funding options and the decision to proceed with Franco-Nevada is based on various factors, including the size of investment, the permanent nature of this financing, Franco-Nevada’s experience and understanding of Latin America and the competitive cost of capital.”

Hofmaier also noted that in SolGold’s opinion, a 1-1.5% NSR “will not constrain the debt capacity of the project; on the contrary, we believe this financing increases the confidence in SolGold’s ability to fund the development, further affirming the overall quality of the Alpala deposit.”

SolGold said the funds would be used to complete a feasibility study and any surplus would be used for SolGold’s share of the development of Alpala, pursuant to agreements with Cornerstone Capital.

cont....

By: Trish Saywell December 18, 2020

Two years ago The Northern Miner named Nick Mather, president and CEO of Australian junior SolGold (TSX: SOLG; LSE: SOLG), as its Mining Man of the Year for his role as the driving force behind the world-class Alpala gold-copper deposit at its Cascabel project in Imbabura province in northern Ecuador. The company has attracted major companies as shareholders, including BHP (NYSE: BHP; LSE: BHP) with a 13.57% stake and Newcrest Mining (TSX: NCM; AS: NCM) with 13.49%.

But delays at the project this year and Mather’s decision in May to raise money through a US$150 million royalty and streaming agreement with Franco-Nevada (TSX: FNV; NYSE: FNV) elicited criticism from some of the company’s shareholders.

That displeasure was voiced at SolGold’s annual general meeting on Dec. 17, when 44.75% of the company’s shareholders voted against Mather’s reappointment to the board of directors.

Mather, who according to the company’s most recent corporate presentation owns about 4.37% of SolGold, could not be reached for comment.

In mid-July, Cornerstone Capital Resources (TSXV: CGP), said it wanted to replace SolGold’s entire board of directors. Cornerstone owns 7.54% of SolGold and has a 15% interest in ENSA, the Ecuadorian company that holds 100% of the Cascabel concession. SolGold owns the remaining 85%.

“As one of the largest shareholders of SolGold, it is obvious to Cornerstone that the current SolGold board is incapable of managing the affairs of SolGold for the benefit of all shareholders in a prudent and transparent manner,” Cornerstone’s chairman, Greg Chamandy, outlined in a press release. “Additionally, it is our view that the proposed Franco-Nevada royalty financing will significantly destroy shareholder value for all SolGold shareholders.”

cont.....

https://www.northernminer.com/news/solgolds-nick-mather-faces-shareholder-anger-at-agm/1003826372/