focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
My thoughts should anyone be interested.
1) this company is currently an explorer. It eats money drilling holes in the scenery so won’t attract mainstream investors looking for divis. It means the share price is will be more volatile c/o a handful of emotional investors doing their thing
2) the shares changing hands are a piddling percentage of the shares in issue yet they define the MCap
3) The published, audited resource estimates are a bankable asset of sorts so the share price will have an underpinning which it lacked in the early days. We are probably bouncing off that backstop now.
4) you can borrow against an asset if the business case is sound so the bank balance isn’t quite the worry for me viewed through that lens
5) we have two proper mining companies with skin in the game. None of us know what the end game might look like but if one went hostile on the whole company, the board could put Alpala up for sale in defence. I’d cheerfully take a special divi and carry on since the remaining pipeline is worth a punt.
6) it could go all the way to production. I’m not in any hurry. It will be a nice asset in my ISA for the decades to come, the MCap will stabilise once a ‘normal’ mining company and the divis will start to flow
7) until then, if the share price wanders a bit low, I’m adding a few more for all these reasons. The true worth in the short term, as in any auction, will only appear and briefly if there is a corporate play.
So, keep calm and carry on I’d say. Some might trade it still, but I wouldn’t dare now, and the only reason for angst i can see is that you need Cash urgently, not Solgold.
@ BN.C .. aye am good ta. Soldiering on as you do. Hoping for an escape from the hamster wheel of work one day. End to just watch here for useful discussion and links but it sure ain’t what it used to be. Perversely, that could be a good sign!
So why is he recruiting rationally within the go for gold production strategy he’s outlined ever since Adam was a lad. If bigger predators do break cover then it will be very exciting down by the watering hole and they likely won’t until they can smell blood, BUT until then, the share price floats on the whims of PIs on negligible volumes. Take-overs don’t happen on negligible volumes so I’m chilled, but then I’m the sort who only bids in the last 15 seconds of an eBay auction.
The mre pea etc process is about creating a de-risked business proposition that financiers will lend against. Only like a survey and a self-build staged mortgage. NM said as much in his last interview, project finance not drawing on corporate capital.
Volumes traded are just noise when you look at the size of the total shares issued, and the apparent share price is driven by these “odds and sods” changing hands. Any truly substantial purchase on the open market by any suitor would immediately drive the sp north as the marketplace is soooo small. So if NM does a raise, the main players if they have any strategic ambition at all will all have to subscribe or lose ground against their rivals. We PIs are bystanders to history now. Just hold tight and enjoy the ride.
I guess it’s like eBay or any other auction. The forecast / reserve price becomes real in the closing moments before the deal is sealed. Until then, and particularly if you think it’s a way off, then keep your money in other growth / dividend bearing stock. Personally, since I’m rubbish at timing, I’m sitting tight watching the kettle slowly come to the boil.
At times we really do sound like the informed masses airing our exasperation with the England Manager. (Football, not Boris). I am willing to admit that I don’t know enough to trade this share, but having NM invested up to his row-locks is enough for me to know that he will do his best for himself, and by extension, for me. So, sit tight and pretend it’s Monopoly money. What do we know, really, beyond some basic instincts about the future of copper. That’s the wine talking btw.
I wonder if NM is currently cultivating Rio. A share issue of bhp / newcrest size would be worth 10% dilution for the destabilising effect. It’s all too cosy at the moment.
And not forgetting whoever came second in any race would likely double their money for their troubles. We need Ensa sold to keep Solgold liquid and independent.
Four years ago we got two or three boreholes a year out of alpala. It was gripping stuff. Now though, I’m not as excited by them as it’s a flow of broadly consistent data confirming what alpala is made of. It’s impact on the PEA is what matters, and so worth the wait for the grown up investor in me. For the other tenements, rock chips and early cores are exciting for the speculator in me.
Unanimously, the Constitutional Court (CC) decided on June 20, 2019 to deny and file the request for a prior opinion on the constitutionality of popular consultation to the question "Are you in agreement with the mining exploitation in the territories of the communities settled in the parishes of Lita, Carolina, Jijón and Caamaño, and Goaltal? ". The first two are located in the province of Imbabura and the last two in the province of Carchi. "The Court verified that the proposal to call a referendum submitted to constitutional control does not meet the requirements of clarity and precision required by law, such as those related to the existence of introductory recitals that allow contextualizing the questions and the non-induction of responses to the voter, among other requirements, "says a statement from the Constitutional Court.It was presented by the leader Wilmer Meneses, who called himself the common procurator of the four parishes. In those areas of the north of the country, the Cascabel project, operated by the company SolGold, is developed to extract copper, gold and silver. (I)
This news was originally published by Diario EL TELÉGRAFO under the following address: https://www.eltelegrafo.com.ec/noticias/economia/4/corte-constitucional-consulta-mineria
If you are going to use it, please quote our source and place a link to the original note. www.eltelegrafo.com.ec
Ta BN.C had a little read since. It’s like that play wot Shakespeare wrote. Much ado about nothing. That’s the one. Wonder how engineered it was .. one of the majors deploying their special operations executives perhaps. Right good tree shake, best I’ve seen in ages.