Member Info for theiceberg

This will spend a lot of time in auctions imo. I don't the market makers know SOLG well enough or will have done any research into the deal.
They will be half asleep from the long bank holiday
(and this comes from somebody who has been on a trading floor, they will be stocked up with coffee cursing this)

I am saying that Franco value the company at that, what the market thinks?

It would be difficult for any takeover to value it at less now.

Its an amazing amazing deal.

Good Luck pricing this Marker Makers. :)

This is basically an investment at well above £1 a share.

The current discount to NPV obviously assumes an 8% return on capital over the LOM. Franco have indicated a 12% value of return. SO if we have first pour in 2025, we have 5 years of 12% interest to compound to start with. 150m at % indicates a payback of 1.5bn of poured gold. If we then factor in the LOM and the % they expect.
Now we need to do the second, so if for example we have an 8% NPV of 2.5bn with the gold and copper and 1% of just the gold is worth 150m, and the gold split of the NPV equals 1b at 8% discount NPV then factoring in we know they are paying well above the 8%NPV, particularly when you consider the initial 5 year compound at 12%.
Hope that makes sense.
These figures are not the actual figures but when I did the fag packet it came out from 10-20% NPV, far above the 8% and far far above our current valuation.
At the current MCAP, they could buy 20% of the entire company for 150m, instead they have settled for 1% of just the gold in a single project with no payback for 5 years.

A quick fag packet calculation assuming expect interest/profit, first pour in 2025.
Would be discount to NPV of 15% valuation, so valuing SOLG well into the billions.

well they've been mentioned a couple of times on here as a dream company and we have it.
1) No Equity (TICK) - no equity, when was the last time we had a company receive 150m pre DFS without giving away any equity.
2) At project value (Tick) - we need to mine 1.5bn of gold before Franco make even a dollar of profit, far far in excess of the current mcap.
3) big 2-3b Finance - the head of Franco saying they really really want to be involved in this.

FInally a not too painful get out clause at 12% interest for a company to buy out Franco, if we get a takeover.

The takeover gun has been fired, this is an amazing achievement. Worldclass cascabel, attracting the worlds number one gold royalty company.
OH yes...

My take is that funding comes in either equity or debt (some instrument).
They have said that it will not be priced on the current sp
Equity can be stand alone to the bigger 2-3bn
Debt can't imo... Nobody will fork out 150m in a debt instrument (be it stream royalty off take etc) unless they know how the 2\3bn will be raised...They need some clarity 're the route to payback...also if for example it's a royalty Then this will affect future streaming deals..
Tbh I am as interested in the details of the funding as the actual funding. It's a fascinating time to be in solg as so much important news will come in the next 6 months.

I don't want to to just continue this as there are far more important things to discuss.
However as a last post "If you are in this to make a quick buck, it's not going to happen" your comment is very clear. I didn't just selectively pick a time period, I mentioned the last month as that is very very relevant as to whether your comment is accurate..lots of people have brought in and made a quick buck in the last month.
I agree that over a seven year period the share gone up and down, of course it has, ever stock in the world has, unless that stock is sat at the highest levels ever, then there will be people who got spiked, but its irrelevant as to whether the share price is good or bad.
"However, we have been in the situation for the last 7 years ( that's how long I have been here ), where a takeover is not only imminent, but will deliver a substantial profit." If you brought in at 4.6p a share then you've made a substantial profit already!
I fully understand and expect caution but I have not taken your comments out of context. (but taking the highest point of a share from years ago and the company was pretty much a different company is being selective) There are plenty of examples of FTSE companies down 50% or more at current levels from their highest of the last decade.

I to was invested in SOLG when it did the first few drills, but I sold out as it was obvious that considerable dilution would be needed to keep drilling very expensive 1000m holes, I was partly right and wrong tbh, as the price is up from those times at the moment.

Re solg not meeting time frames(Jerry), they are no better or no worse than any other exploration company actually exploring. this isn't stuff you have complete control over. Such as the finance...Although they might expect 2 weeks and have even been told 2 weeks. 1000 things could extend that a bit, not least a last minute offer of better finance which they would be stupid to ignore or a company pulling out at the last minute or wanting to change the terms.

I will say it as I see it worts and all, but will equally call out worts and all.
It goes back a little to what Earthling tried to say that folks seem to talk the share up one day and then dwell on the negatives the next. I learnt along time ago not to trust anybody on these forums even people that seem the nicest folks.

Not trying to be rude, but we've had a lot of rubbish posted so far this morning.

SOLG isn't the kind of share to give you big reward, its not going to give you a quick buck - its just risen 150% FFS compared that's like 5 years of FTSE growth in a single month!
We've been in the same situation for 7 years - again complete BS. Cascabel is a completely different beast over that time, we now have 2 10bn+ miners on our register. We have released the first economic assessment (PEA) and are awaiting this year the first legally compliant FS to show in detail what it's worth. We are 12 months away from the DFS, filling all requirements and getting CGP to pay their way and have been told that we will be informed shortly how/what offers we will fund the 2-3bn required. We have BHP out of a standstill agreement in a few months time and have hired a big investment bank to advice us and help us with any takeover attempts.
To say we are in the same position as the last 7 years is crazy talk sorry.
finally as Jerry says, copper is nothing like oil. nothing at all. There are maybe a few hundred places (apart from a limited number of expensive ships )where you can store any quantity of oil. Copper can be smelted and stored in literally millions of places. Oil cannot be taken out of the ground and just stockpiled, mines will dig it out and just pile up the pay. The biggest impact is that mines will have an extra 3-6 months of life. There will be some oversupply but the Chinese smelters have been running on low volumes for ages now. It will take maybe 12 months for the copper to return to a normal footing, less if the stimulas plans come in.
As to the price of copper, there are very strict rules concerning the price of copper that can be quote and used, all NM is doing is following those rules and can't do anything but that.

Sorry not trying to rant, but lets keep things at least factual.

Interesting isn't it..it has been up to 54 i think..so current at 30p and up to 32p going from the exchange rate.

See what it can without our manipulated market trying to drag it down!

No I am not expected it :)
A very good way of valuing a stake though and one that solg has benefited from in the last in what other companies are prepared to invest at...be it Newcrest with its initial investment, BHP with its 40p one or even not so good BHP with its 22p in november. We don't know the terms of the 150m or 2-3bn but if we believe what we are told it will be bloody good.
I am Happy to wait and see.:) Like most here.

This is a genuine question that I asked before and would like an answer if anybody is able to inc zzoros. Itch the be relevant to solg indirectly 're CGP valuation.
"Since your so knowledgeable and researched give me a single example, just one, where a mining company has sold a controlling 70% stake to a big company and then received far far more for the small bit that's left?"
Feel free to change mining company to any related definition people want!

P.s. Sorry for my grammar/typos in the last post I was on my phone whilst doing gardening outside.

Zoros I am sure this is getting boring now..it is for me..we on LSE chat, we talk about shares that trade on lse and your complaining about using lse definition s just so you can think your right. If I or any said produced then that's different but I don't think anyone has..
ou out
Your just trolling imo with no facts to back up anything. Your entitled you opinion about things( that's what today is all about fighting for that freedom and winning) but let's not dress that opinion up as fact or the one and only truth.

I agree thanks for the link, Solg isn't the only show in town, but it will be on everyone's list, either right at the top, or in the top 3. Nick has said multiple times that SOLG is the biggest copper/gold advanced project that's not majority owned by a major in the world.

Agree Addicknt, The bond issue for Newcrest was nice for a few reasons, but not for the reasons of any spare cash for Newcrest.
They have raised primarily for debt conversion. Something all companies do, or should do. They might issue the debt on a 10 year bond, at year 5 they will start to make the decision to either cancel it through cashflow or reissue it. i.e issue 1bn of debt to but the 1 bn of debt back but this time with a 10 year yield again. Newcrest is not sat on a massive cash pile ready to buy or fund SOLG or GGP for that matter its pretty much all been accounted for (I think their exploration spend is due to double this year and will need funding).
The good news though is that the bond issue was 8x oversubscribed, was on a lower interest rate than their last debt and was on a 30 year deal, if memory serves me. This is quite amazing, actually this is massive.
Most miners have been reducing debt to asset ratio's as debt was deemed increasing risky and difficult to finance. Why would somebody subscribe for a BHP bond at 3-4% when you could invest in shares and get 10-15% returns. If you wanted safe you invest 50% in 2% Govt bonds and 50% in the stockmarket on tier 1 stocks.
Obviously there was still demand but it was a bit of a struggle, particularly for 30 year which had disappeared as an option.

Roll forward to now though, shares are as risky as hell even tier 1. Govt debt is exploding. So corporate debt is much more in demand. This is enhanced by QE measures and stimulas.
We can say that the top tier corporate bonds are very different to debt that solg might issue (not least because, again from memory, this can be used as collateral against Tier 1 liquidity ratios for basel and capital requirements.) but any explosion of demand for corporate debt will make most of the worlds top miners, royality/streaming companies/smelters sit up and think about what they could do with the money that's being thrown at them.
Hearing about how oversubscribed the Newcrest issue was, I wouldn't be surprised if tempting new financing packages are not arriving daily to Ingo.
This might lead to a delay of a few days even a week or so, but its worth while.
On a side note China has been hooving up copper again, no doubt due to govt help.

Btw if you go just above the graph on this website it tells you the sector is for solg its.
"Solgold is part of the Mining sector."

You do know this is the solg board?
I am pretty sure I was speaking to Mr Baxter before 95% of the current shareholders knew ggp existed.
Ggp is classified as a mining company in the indexes.
The rest is bs take it back to the ggp board and loose your money there.

There certainly isn't much on offer at these levels. Liquidity is very low today (lowest for a month, unless we get a spike)
Very little volume on TSX for CGP or SOLG either last day or so.
Certainly going to move in one direction when we get some/any volume

GGP already been brought out, £50m for 70%.
Its like SOLG selling 60% of ENSA for £400m and then still thinking its small stake it worth 1.5bn
Or even CGP selling 85% of Cascabel to SOLG and then them still thinking that there 15% is worth hundreds of millions....
Since your so knowledgeable and researched give me a single example, just one, where a mining company has sold a controlling 70% stake to a big company and then received far far more for the small bit that's left?