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Which other major players could emerge as potential buyers?

Given the current circumstances and recent developments, several major mining companies could potentially emerge as buyers for SolGold. Here are some insights into potential acquirers:

Newmont Corporation: With the acquisition of Newcrest Mining, Newmont has solidified its position as a leading player in the gold and copper markets. Their interest in expanding copper resources could make SolGold an attractive acquisition, especially given the strategic importance of the Cascabel project.

BHP: As one of the largest mining companies globally, BHP has shown a strong interest in copper, driven by the metal’s critical role in the transition to renewable energy. BHP already holds a significant stake in SolGold and has the financial capability and technical expertise to develop the Cascabel project.

Chinese Mining Companies: Companies like Jiangxi Copper, which already have investments in SolGold, could leverage their position to gain full control. The strategic importance of copper to China's industrial plans and its focus on securing raw materials for its electric vehicle and renewable energy sectors make SolGold an appealing target.

Rio Tinto: Another major player with extensive experience in large-scale mining projects, Rio Tinto has been actively looking to expand its copper portfolio. The company’s proficiency in block caving, a mining method that SolGold plans to use at Cascabel, further enhances its suitability as a potential buyer.

Anglo American: Known for its diversified portfolio and significant investments in copper, Anglo American could also be a contender. The company's experience with large, complex mining projects could make it well-suited to take on Cascabel.

Recent news and company announcements have highlighted the strategic review SolGold is undergoing, which includes evaluating financing alternatives and potential asset spinouts. This strategic review, combined with the need for substantial investment to develop Cascabel, underscores the likelihood of a buyout​ (Mining Weekly)​​ (Mining)​​ (Mining)​.

In summary, while several companies are in a strong position to acquire SolGold, Newmont, BHP, and Chinese firms like Jiangxi Copper stand out as the most likely candidates due to their existing interests and strategic alignment with SolGold's assets.

Sign of the times...a conversation with ChatGPT can be less annoying that one with 80% of the posters on this BB...

Given SolGold's current financial situation and its ambitious plans for the Cascabel project, it's plausible that the company might seek acquisition by a larger entity to secure the necessary funding. SolGold has managed to reduce the initial capital cost for the project from $2.75 billion to $1.55 billion, but even this lower amount still requires significant investment which SolGold currently does not have readily available​ (Gold Telegraph)​​ (Mining)​.

Several large mining companies are in a good position to acquire SolGold due to their existing stakes and strategic interests:

BHP: BHP has been steadily increasing its stake in SolGold over the years, showing continued interest in the Cascabel project. The company recently purchased additional shares to solidify its position. BHP's strategy to grow its copper resources aligns well with the acquisition of SolGold, which owns one of the largest undeveloped copper-gold deposits​ (Mining Technology)​.

Newmont: With the recent acquisition of Newcrest, Newmont now holds a significant indirect interest in SolGold. Given Newmont's extensive resources and expertise, particularly in block caving operations, they are well-positioned to support the development of the Cascabel project​ (Gold Telegraph)​.

Chinese Companies (e.g., Jiangxi Copper): Jiangxi Copper, along with other Chinese firms, has shown a strong interest in securing copper resources globally. Their investment in SolGold reflects their strategy to secure raw materials for China's industrial needs. Chinese companies have a history of making substantial investments in mining projects to ensure resource security​ (Mining)​.

Additionally, SolGold's recent strategic moves, such as the royalty deal with Osisko Gold Royalties and equity investment from Jiangxi Copper, suggest that while they are exploring all funding options, including potential streaming or offtake deals, the scale of the project might still necessitate a buyout by a more financially capable partner​ (Mining)​.

Given the strategic alignments and financial capabilities, BHP and Newmont are currently the most likely candidates to potentially acquire SolGold. However, the competitive nature of the copper market means that other major players could also emerge as potential buyers.

SolGold has recently announced a significant $3.2 billion investment commitment for the development of its Cascabel copper-gold project in Ecuador. This commitment, however, is made by the company itself, and not by the Ecuadorian government. The funds required for this project present a considerable financial challenge for SolGold, raising questions about how the company plans to secure such a substantial amount​ (Mining)​​ (Mining Technology)​.

Given SolGold's current financial position, it is highly likely that the company will need to explore alternative financing strategies to meet its investment goals. One plausible route is through streaming or offtake deals. These mechanisms allow companies to raise capital by selling future production at a discounted rate in exchange for upfront payments. While SolGold has not specifically announced any new streaming or offtake deals, these financing options are commonly used in the mining industry to secure large-scale funding without immediate dilution of equity​ (The Northern Miner)​.

Moreover, given the scale and potential of the Cascabel project, it could attract interest from larger mining companies looking to expand their portfolios in copper and gold. Companies like BHP and Newcrest Mining, both of which are already shareholders in SolGold, might be potential candidates for either increasing their stakes or considering an acquisition. This scenario would provide SolGold with the financial backing needed to advance the project ​ (Mining)​.

To summarize, while SolGold might consider streaming or offtake deals to raise the necessary funds, the possibility of acquisition by a larger mining company cannot be ruled out, given the strategic interest and existing shareholder structure. These options are all on the table as SolGold moves forward with its ambitious plans for the Cascabel project.

A world full of copper, where we have made the multi-bagger and can stop insulting or patronizing each other on an anonymous BB. Wouldn't that be something?

I guess we can start stopping insulting and patronizing each other in the meantime?

This is all quite pathetic...what is it with people and their inability to be their best selves?

Https://www.reuters.com/markets/deals/anglo-american-rejects-2934-pounds-per-share-proposal-bhp-2024-05-22/

I love "Needapoo"......

A - which part of the permitting workflow is still not clear? There is nothing weird in raising finance "subject to" receiving the necessary permits, which as we know is not easy in general and certainly not easier in Ecuador?

B - There are degrees of "cheap" that would still be palatable to some investors even undervaluing the company.

Red, my friend, sometimes you just think too much...

@FTJNY, I have had a number of e-mail exchanges with ST, and every single time I had to ask him to stop diverging from the topic of my questions, which by the way he never ever answered. He just starts talking about how great everything is without explain in which tangible way, he starts talking about other great investment opportunities that I did not ask him about, anything other than what I want to talk about. To be honest, after my rather blunt comments to Scott about how embarassing the Comms were and than the result is ST, I wish the company just did not engage until they actually have something consequential to communicate.

@Stackhigh, long term holders are not basing their investment hypothesis on the same principles as traders do, so your point is rather out of place. There have been and there will be plenty of peaks and troughs before the long term holders decide they have held enough. Traders will hold for shorter periods of time trying to benefit from price movements.

Good luck with your investment/trading strategy.

And of course I hope ypu guys are right. But my point is that on a facts basis we just don't know anything more than whatvI wrote, the rest is just hope and speculation.

IMHO:

1) as Scott commented once some time ago, some money was freed up and he bought some shares, which he can only do in Canada as that's where his pension fund is. So I would not stress on the tiny buy, he likely had some extra and added up even if the amount was immaterial.

2) The majors can take all the time they want (assuming they are interested in eventually making a move on SOLG) and if anything can also agree among themselves to keep doing nothing to starve SOLG. So I would not hold my breath.

The only think that we know for sure are that 1) cash is running out and SOLG needs to announce some funding rather soon, 2) they hope it's not dilutive. The rest as usual is our speculation.

GLA

I think for balance, if I am not mistaken, the point was that gold could shoot up and/or the DJ could crash.

Agree on copper, 10800 next level to look at.

Gold on the other side, I think it will either try to shoot to 2700 or will retrace to 2100.

HfH, to be honest IMHO I don't see SOLG selling assets other than Cascabel. It's been difficult enough to do any deals on the main asset, imagine the other ones.

Besides, even from the NM days, the other tenements were put under the other 100% owed companies in view of flogging Cascabel and restart the exploration-to-monetization cycle with the rest of the portfolio.

I can imagine JVs for any of the other tenements, but then in that scenario it would only be capital for those projects so it would have no significant bearings on SOLG as a whole.

That is just my opinion of course.

GLA

Theoretically, if any technical movement is at play here, after a clear retracement we might enjoy a wave up to 12.80/14.1, depending. We shall certainly see soon enough if that is the case.

GLA

I concur with Add. If we look at the Fib extension from 4th march to today, we seem to be in for either a 14% or a 39% retracement, which is of course less desirable than a 14% or 39% raise, but it's in the predictable range of things after such a quick raise. I would wait until the end of the week to express a view one way or the other.

Https://www.ft.com/content/59298650-540a-43cd-86f8-a6c6db0aa906