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Perhaps this is wishful thinking on my part - but below I will outline what I'm hoping will play out over the coming weeks.

SOLG agrees to sell its 85% share of ENSA to a 'NewCo' entirely owned by BHP and NCM (aware that these two technically own some of that 85%, but hear me out). NewCo also purchases Cornerstone's share of ENSA. SOLG receives cash for the disposal of its core asset, resulting in a substantial re-rerate in share price. I will not speculate on what that deal might look like, though I imagine it will disappoint the £1+ crew (sorry).

This:
1) explains why Cornerstone have been so quiet and seemingly content (we know when they are not content, they kick up a fuss)
2) allows for Darryl's 'next cab off the rank' prophecy to remain true - Alpala is sold off, SOLG retains Porvenir and the rest of its exploration portfolio, with the opportunity to rinse and repeat. You would hope that shareholders would receive a special dividend of sorts from the sale of Alpala, with cash retained in the coffers for what SOLG is best at - exploration
3) may allow Nick Mather, up for a reelection at the end of this year that he is almost certain to lose, to maintain his seat at the table as a NED (you would imagine this might be part of any negotiated deal for ENSA, as Nick's shares are going to be necessary to sway any vote)
4) allows for Nick's 'multiple exit points' for shareholders to remain true and is aligned with Darryl's new 'next cab off the rank language'

Nick's goose is cooked at the end of the year, and whilst that does not mean that he and his companies necessarily lose out on their shareholding, it does mean that his influence over decision making at SOLG is going to be heavily watered down. It also - in my opinion - increases the possibility of massive dilution on a scale that he personally would not be able to keep up with, thus weakening his influence further (and handing over the keys to the majors).

It might be a tough pill to swallow, but agreeing a deal for ENSA that allows him, his companies and us to all benefit in the short term, and allows him to retain some form of influence over the rest of SOLG's portfolio (remember, he thinks we're sitting on multiple Tier 1s) seems to be his best option at the moment.

Thoughts and feedback welcome - writing with a slightly sore head after yesterday's fun.
SM

BnC. If SOLG is part of the same gold junior ETF that GGP is, the fund readjusts its portfolio twice a year, and one of those times is in May. The algorithm is based on momentum and one other criteria that has slipped my mind but available through a quick Google I'm sure. They decreased their holding substantially in GGP - probably due to momentum totally fizzling out there over the last 6 months or so (excluding yday and today of course!).

I am guessing that some of the after hours buys have been that, and possibly the likes of Norges continuing to build a stake here.

Good long weekend all.

Let's hope so DWB.

Another thing I've been pondering is whether BHP/NCM have asked for the EGM in light of the financial misconduct revelations. Appreciate that SOLG has dealt with that properly - bringing in an auditor and finding no more evidence of wrongdoing - but any stick the majors can use to beat the current BoD will likely be used.

The corporate governance story has been rumbling on for some time. I'm hoping that the June EGM won't be the latest chapter in that saga, and that instead we're going to be presented with a substantial update on how the company intends to progress its core asset, whether that be through corporate action or financing. Time to show your hand, Darryl.

Hi Shipright. I can't say I agree that I find the news unsurprising or remotely acceptable. This is a business that many on here like to champion the ESG credentials of; bribery, corruption and backhanders undermine the squeaky-clean approach we've attempted to take to date.

Bubble and Woody, I didn't have a ticket to the game, just went for the jolly and to catch up with some old friends in Paris. Wasn't willing to shell out £2,500 which was the going rate, and glad I didn't because by all accounts sounded like an utter sh*tshow. A friend who had a ticket to the game was mugged at knife point by some local Parisian youths. Appreciate the kind sentiments and Woody glad your lot stayed up this year, Leeds are a proper club and deserve to be in the PL.

The EGM news is very interesting, not sure what to make of it as of yet and hope that the company give us some indication as to what's on the agenda sooner rather than later. Onwards and upwards SOLGers, hopefully not much longer before payday!

Solid analysis CD. Bring on tomorrow.

Some excellent posts on here this weekend, thank you to all contributers far more knowledgeable than myself. After a heartbreaking couple of days in Paris (I am a big Liverpool fan) it's been great to read some proper insight on the train back home.

Great call Levs. Nice to see us back in the 50s. Excellent pipeline of new coming over the summer months.

Thanks for sharing this. Shaun sounds very relaxed.

I must admit being disappointed to hear that most BBQs in Aus are now gas. I can get on board with hybrids but for me it has to be charcoal.

For me this share at this price is one of the best 2-3 year investments around at the moment. Happy for the price to be wallowing around the 11p mark as it's presenting me with an excellent opportunity to increase my holding as and when funds become available. It's one to stick in the bottom drawer and forget about for a while, particularly if you're the type to get frustrated with the short term price action.

Damers, your #1 around keeping SOLG as a subsidiary is exactly the sort of creative thinking I was referring to. I'm sure post-takeover the SOLG employees with good relationships with local gov would be more than happy to stay on and assuage any concerns (for a healthy fee, of course).

It seems strange to believe that SOLG could *build* Alpala faster than anyone else when it took several years and two delays to produce a credible PFS. Of course a major such as BHP would be able to mobilise faster than SOLG. As addicknt points out, BHP will also have its own relationships at government level in Ecuador, and I have little doubt that they - amongst their other dirty tricks - will have dropped numerous not-so-subtle hints to the government that they are a more capable partner than little old SOLG, when it comes to building a Tier 1 mine.

Ultimately we have a government in power who want Alpala built and revenue generating as quickly as possible. If BHP buys SOLG I don't think they are going to start playing hardball with the permits. That said, at a local level the picture will be different, and that would likely require some creative thinking.

"All I am saying is try not to dismiss the speculation or interesting thoughts just because they don't appear in an MD&A or RNS"

By definition it wouldn't be speculation or 'interesting thoughts' if they appeared in an MD&A or RNS.

LunchMoney is simply calling out the nonsense on here which is factually incorrect. You can spin it all you like Colonel as 'speculation' but some of it is just plain wrong, case in point being the idea mooted by yourself and BBG that the company finding an employee with their fingers in the till and hiring a consultant to look at the books is somehow part of 'due diligence'. You can waffle on about the man reaching the moon all you like, but some of us are frankly bored of reading the daily (and ever changing) twaddle about what might happen here.

Lunch, keep posting and calling out the rubbish mate, serious prospective investors will appreciate it.

BBG - I hope you're right mate.

Colonel - I have no idea how a company currently valued at £633m could spin off its core asset and achieve a valuation of $2-3bn.

BBG, back in December you wrote: "I will bet my left testicle that we have mapped the PFS and BFS, and we are revealing the numbers to a select few who have capacity to bid during the next 11 months."

At least your poor mother in law will only have to suffer whatever the right b*llock can muster up.

Carefreeinvestor - great, reasoned and balanced post. I'm slowly accumulating here, currently at around 50% of my target holding. Have no issues with the SP in the short term as for me this is a 2-3 year hold, hopefully with an average around the 12p mark.

"Anything else you want to rustle up or are you now out of gas?"

If you're trying to imply I'm not invested here or deramping this share, you're wide of the mark. We just don't all live in the "every day is a bid day FOMO is king" dreamland that you do.

Of course Colonel, but if BHP and NCM are joining forces, I would assume they would have the backing of the big insti investors, and PIs who are simply fed up of being invested here and would take 50p tomorrow. Moreover, the more influence they have on the board, the greater the possibility for dilution on a scale not yet seen here. Mather & his various holding cos simply won't be able to keep up if that is the case.

I'm also acutely aware that our CEO still holds no stock in this company, unless I've missed something.

smickster, as the older guard / axis of Mather is eroded, there is greater opportunity for BHP to lobby for 'friendlier' faces on the BoD, negotiate an agreed deal more aligned with their own interests (and possibly NCM's) that the BoD will then recommend to shareholders.

"The city spivs are annoyed that their contact Ingo has been moved aside and a new powerful CFO brought in."

Wild, baseless speculation.

"I think the market is slowly realising that SOLG will not be going cap in hand (on a significant level) and the city spivs will not be getting a cheap entry."

Based upon what exactly? When we need cash we will need cash. And we will raise it at the price the market is willing to offer us.

Like you Colonel I'm hoping for a bid sooner rather than later, but recent events and SP action imply that one isn't coming anytime soon. I still haven't read a good reason on here as to why BHP won't wait until after the next AGM before making their move. What is another ~6 months when they have waited this long, and might be able to sew up the asset for cheaper?

Nice to see your name crop up, The Italian, used to thoroughly enjoy your posts back when. I haven't had time to get stuck in to the MD&A yet but hoping for some good discussion later on today.