My 2 cents on takeovers25 Sep 2018 15:50
1) We just cannot speculate about what NM would do should he cash in big time, and it's a long shot to speculate that he would retire from the exploration business, just like that; if anything I would expect him to be reinvigorated and keep going;
2) The company is not just about NM anyway; by now there are more stakeholders (investors, employees, the Ecuarodian government, etc.) and there is an important element of corporate and social responsibility in this programme, which imho leads to SOLG doing their best to remain in business and independently so if possible, to keep developing the rest of the Ecuadorian pipeline with their name all over it;
3) The part where NM wants to have an option to just sell after feasibility and before going into production, should a palatable offer come about, has been taken care by the creation of ENSA, so there is a clear demarcation between what is going on at and around Cascabel, so ENSA can be easily sold and with a varieties of solutions;
4) If any major were so keen to just splash the money in not fully determined resources, SOLG would have probably already been taken over; the fact that we are still here debating indicates that no one will put an offer to take over the entire company, even if the SOLG management were all of a sudden keen to sell; imho SOLG will sell one piece at a time, as the various projects go through the same motions that Cascabel is going through at the moment;
5) if the updated MRE and the PEA come out very good, and of course SOLG know already what that looks like, it's possible to lay down the plans for conditional debt financing already, which allows SOLG to model their future cash flows and minimize dilution before the price shoots up; that makes going to production more than feasible, considering that they already partner with the most expert company in block caving, and protect the share price until we can achieve a $0.20-0.30 / Kg CuEq valuation.
GLA!
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