George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
Quady, do you really think that the cash-strapped government of Ecuador IS in a position to be the guarantor of a $1.5bn loan to build a mine? Is there a precedent for this type of agreement?
No one is going to agree to a JV with us where we are the majority partner. Not in a million years.
This all feels quite pie in the sky, BBG.
How can we credibly 'create' $3.2bn of non-dilutive funding? And then get a placing away at 6x current SP? This is batsh*t even by your wild standards.
Who the hell doesn't like Chinese food?
Https://solgold.com.au/solgold-plc-announces-cascabel-investment-protection-agreement/
What confuses me is the $311m figure quoted in yesterday's RNS. The original IPA (shared above) was for $430m and the various calcs done on here had put both our spend and the 'balance due' at different figures to the $311m.
If the Ecuadorian government had agreed to lend us $3.2bn I think we would have risen more than 17% yesterday. This is the figure we or whoever builds Cascabel will be spending. What the RNS yesterday was light on was detail, I.e. timeframes. But we'll get that when the actual CIPA is signed, I imagine.
Fort, that was exactly my reading of it this morning. The optics of signing an agreement worth $3.2bn with a company with around £$10m in the bank wouldn't be great. This is basically as you say, a statement of intent, but it's important because it shows Naboa is onside and willing to give us some rope.
It also signals to a risk averse prospective buyer that 1) mining in Ecuador is very much back and 2) Cascabel is THE project the government really wants to work because of its size. It was a big, public de-risking event on both of those levels.
How, if at all, we raise more cash here will be very telling.
Z, sadly not, was stuck with a client until half 6 in the end. I did tune into the webinar and was fairly non-plussed. My takeaways were to expect more delays before first ore and to not buy any more shares until we've played our hand, which inevitably will involve more equity.
Apols for off topic.
ToS, I disagree - this is the first time we've been given firm assurance that Naboa is onside. Ecuador is open for mining and Cascabel is the jewel in the crown. This is excellent news for us and a long overdue re-rate.
I think once we get the cash monkey off our backs this will re-rate substantially. Yesterday/today's news is the tacit government support we have all desperately been waiting for since Naboa took over. I feel a lot more comfortable following the show of unity between SOLG and Ecuador at PDAC.
It's now a case of securing some short term funding to give us a little more runway to get a deal done or, better still, selling the project off to an actual miner!
Pinched from HH on X/Twitter.
Argonaut Securities a London based broker has published a Speculative BUY note with a 11.6 pence target price.
Liam Twigger (remember him!) is deputy chair of Argonaut.
85% upside from here. Heaven help us if that's the best we can hope for.
Q, perhaps it will focus minds on getting one of those fabled JVs done on one of our many regionals!
Z, of course he's not releasing anything material and non public in the session, but we might get something at 7am which will shape the discussion. Alternatively, he's just in town to talk through the implications of the Newmont news and assuage any concerns.
My sentiment here is similar to yours RE patience and uncertainty! It's been a bumpier road than we both would have hoped but I'm still very positive mid/long term.
MH01 - the regulars on here have told us ad infinitum that Shaun and team have spent the last 6+ months playing 4D chess / planning for every possible scenario, including the one they find themselves in now. I think it unlikely but certainly not implausible. Surely if Newmont can get Telfer and Hav off their books to the most obvious buyer in a way that is quick and painless it's a win for all involved?
Zoros, if I can get out of work in time I will attend and do my best to understand these questions, many of which are top of my list. I haven't heard the latest Sunday Roast. Do you not think it plausible we hear news tomorrow AM?
SM
"The agreement is between Semaica and Solgold.
Hence it's Solgold going forward."
This is just not true. Just as the agreements we've signed with Franco and Osisko aren't dependent on us being the company to actually build the mine for those companies to see returns on their investments.
In typical fashion your head is firmly in the sand and you're ignoring the many facts listed below that run counter to your narrative.
Why would anyone have confidence in SOLG building Cascabel? They've openly stated they're not mine builders, they've effectively shut down ~90% of the company's operations, they've sacked most of their workforce, and the former CEO has submitted court documents stating that all of the current BoD are pursuing a sale.
Today's RNS is a great step towards turning Cascabel into an asset that a serious buyer can purchase and develop.
Paymasters? Get a grip. I have no position here at the moment, I'm researching the stock as I think it looks attractive at this level. I do think it's worth pointing out that, without the settlement, the business lost more money last year than it did in FY22.
“Loss before tax of £(394)m, taking into account £187m from the settlement reached with AutoStore, an improvement of £107m versus FY22”
Does this mean that, without the settlement from AutoStore, they would have lost more money than they did in FY22?
"I advise on institutional agriculture deals"
I sell farms.
If the company wasn't up for sale, whenever a reputable trade publication pens an article stating a version of:
"SOLG shops Cascabel project"
"SOLG advances plan to sell Cascabel"
The PR guys and the execs are on the phones demanding a correction. If you are running a business you have no intent of selling, and some hack writes up a piece saying you're looking to sell it, you call them up and set them straight. The fact that no one is doing this at SOLG, and the fact that DC submitted court document stating that pretty much all of our current BoD with the exception of the new chaps want to sell Cascabel, puts the debate to bed.
Interesting private equity background for Mr Liu, too.