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Newcrest urges SolGold to avoid 'short term' funding fix
Peter KerResources reporter
Updated Feb 13, 2020 — 4.22pm,
first published at 3.50pm
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KEY POINTS
Half-year Revenue ($USm) 1790.0 , up 3.5%
Pre-tax profit ($USm) 459.0 , up 15.6%
Net profit ($USm) 236.0 , down -0.4%
Interim dividend (USc) 7.5 , flat 0.0%
Date dividend payable March 27
The explorer pursued by BHP and Newcrest Mining has been urged to avoid ''short-term fixes'' and raise funds in a way that prioritises existing shareholders and the long-term interests of its promising copper and gold project.
The comments from Newcrest chief executive Sandeep Biswas come as Brisbane-based explorer SolGold works on a major fundraising initiative that is expected to be finalised shortly.
SolGold has been largely funded by share placements to BHP and Newcrest over the past four years, and those placements have resulted in both big miners owning more than 14 per cent of the Ecuador-focused explorer.
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SolGold seeks funds ahead of BHP's unshackling
But SolGold managing director Nick Mather, who owns more than 4 per cent of the company directly and has close links to at least a further 10 per cent, is understood to be keen to source the next funds injection from beyond those two mining giants.
Mr Mather declined to comment this week, but some shareholders believe he is keen to bring new investors and lenders into the fold to ensure Newcrest and BHP's collective interests remain below the 50 per cent threshold that would allow them to change control of SolGold after October 2020 if they wanted.
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NCMNewcrest Mining
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Updated: Feb 14, 2020 — 7.30am. Data is 20 mins delayed.
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BHPBHP Billiton
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Asked whether he was happy to see SolGold fund development of its prized Cascabel project through high-cost finance like a metal streaming deal (where a portion of future copper production is sold for an immediate cash injection), Mr Biswas said he wanted to see long-term solutions.
''The thing that we as a major shareholder are very keen on is whatever funding is put in place is in the interests of shareholders that are currently part of the business, and that those funding arrangements are sound arrangements that look to the long-term future of SolGold as opposed to any short-term fixes or distractions," he said.
''It is an investment we are happy to be part of, it is a good long-term prospect, it has quite a way to go yet before it realises what may be its future potential. We
Apologies if already posted
https://www.afr.com/companies/mining/newcrest-urges-solgold-to-avoid-short-term-funding-fix-20200213-p540hs
Same article in the Miami Herald:
https://www.miamiherald.com/news/nation-world/world/americas/article239871783.html
Magoo, I'm in the same boat. If I can pay the mortgage off before I reach the wrong side of 40 then I'll be a very happy man.
GLA
If I were a major with desires of bidding for SOLG I would trump this bid for Cornerstone.
Greeting SOLGers,
Anyone notice the IRR of 23% and a payback period of five years? This is very impressive for such a large project with high initial development costs.
SS
Fantastic to see that you are still posting!
2011! Wow! How time flies! Hope you are keeping well :-)
News starting to filter through from earlier events:
https://www.proactiveinvestors.co.uk/companies/news/212713/theresa-may-confirms-sirius-minerals-financing-discussions-212713.html
Anyways, must return to work now. ATB to all.
SS
Great
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to hear you are still involved. Where’s Mac?
The “State aid” point if I may answer.
The IPA guarantee scheme was initially set up at a time when company’s were finding it difficult to access monies from the market. The gov clearly states the intended backing was to achieve the necessary funding from the market in a manner that gave the lenders greater confidence to lend.
The gov only act as guarantor to the loans. SM must raise as much of the capital from the markets as possible with only any shortfall being Gov backed.
Sorry no link to hand as in a hurry to head out now but search uk.gov/ipa.
Atb
___________________
Cheers! I appreciate that, i'll check it out. Like I say, I've been watching from afar and I'm not up to speed with all the intricacies like I once was.
Not hear from Mac in a while. Who know's he may surprise up with a tray full of sambuca at the next AGM.
“I worked for a couple of years close to, but not in, a Ministers private office”
—-
Gardener? Lol.. :-)
____________
Malcolm Tucker!!!! You dirty old goat!!
"You'll go far... Now f**k off!"
Haha! Great to hear from you Chem!!!
I'm really good thanks mate. It's been an interesting few years to say the very least - I'm hoping to complete my PhD in the next couple of months (who'd have guessed that?) so I'm working all the hours god sends at the moment. I hope everything is good with you.
Was great catching up with our in London, I've very rarely in London nowadays but it would be good to catch up again. If I'm ever down in there with a little spare time I will let you know. Similarly, if you ever find yourself in 'deepest, darkest Yorkshire' then please let me know.
ATB,
SS
Amplenomore, I suspect that she was addressing Robert Goodwill as he would have been located over her left shoulder in the chamber.
Thanks Myosotis!
Sheff.....it’s not actually ‘state aid’.
___________
Roulette, can you expand? I'm clearly not up to speed.
Myosotis, yes, this is a little odd...
Questions would be selected by the Speaker as opposed to the government, but this does not negate your point. Something is clearly afoot. I don't think I would be speculating wildly to suggest that state support would be a distinct possibility.
My only reservations would be EU State Aid laws, but if I have missed any posts on this then I apologise. Typically a Tory government would avoid such an action (blame Hayek) but such considerations are almost irrelevant in the current state of play.
Likewise GK. I very rarely post on these BBs, but always watching from afar.
Cheers for all your great posts over the years. I'm sure there are many more to come.
SS
Hi PAAA,
Two left feet unfortunately :(
Yeah, all good, and still very much invested in SXX - it's been a long road! Hope all is well with you.
SS
I was procrastinating whilst listening to the radio and my ears pricked. Only thought it would be right to share with you guys ASAP.
https://www.bbc.co.uk/iplayer/live/bbcnews
Skip to 12:15
- Asked about a government guarantee.
- PM met with CF in China.
- PM refused to comment as it is 'commercially sensitive'.