Member Info for TigerByTheTail

I'll also take 40p for my shares - including those I bought yesterday and those I'll buy today.
If anybody from Barrick, Newcrest, or BHP (or their advisors) reads these boards, I thought you'd like to know!

https://www.theguardian.com/business/2020/jul/16/incredible-boohoo-denying-knowledge-of-factory-allegations-says-mp

Hi Quady!
We'll have to disagree on this one, I'm afraid.
But why, I ask, do you imagine the current board are up to handling such a difficult task as financing and building a huge mine? Have they done it before? Do they have any comparable experience at all? Can't you see that Nick Mather is way out of his depth? I have some experience in corporate matters, and I find his interviews embarrassing to watch.

I'd agree that Cornerstone are not acting on their own, but in concert with a major. The likely answer is that major is Newcrest, but it isn't necessarily so.
IMO, the current public squabbling is only the warm up act before the main event. I'm expecting the major to announce themselves in the next few days as a white knight, nobly riding to the rescue to save Alpala from chaos and bad management, whilst making a bid which is lower than many here hope, but which is still a great deal higher than today's share price. By the time they announce, the major will, of course, have secured Cornerstone's shares in SOLG and its 15% interest in ENSA.
I don't think the current board can justify a "go it alone" strategy any longer. They don't have the financial connections or the mining and logistical expertise to handle a project as large as Alpala, and it shows - painfully. And the CEO has already lost the support of at least two major shareholders. In a "normal" situation a truly independent chairman would have asked Nick Mather to step down some weeks ago.
IMO, the best the current board can do now is to strike a deal with BHP (or other major) for a farm-out of Alpala. Otherwise it will end in a full takeover.
I'm happy either way - farm-out or takeover. The one option I don't want is for Solgold's current board to be left in place to pursue their amateurish attempt to build a huge mine, one which will surely end in the project going over schedule and over budget, and in Solgold's current shareholders being wiped out by massive waves of dilution.
I think today means that we can almost rule that nightmare scenario out.

Wait and see...
This isn't going away. It will get worse and worse and worse.

Hi Qalibashi!
First, 50% of Pis won't vote - just as always.
I've no idea of the split on the remainder who will vote. Speaking for myself, I'm inclined to vote for a "sack the board" motion.
Given the initial disposition of the forces, this question will be decided by the bloc vote power of BHP and Blackstone.
That is, if it ever got that far. Which I don't think it will. IMO, offer incoming shortly.

Hi Trendz!
I'm thinking Boohoo shares are still REALLY expensive. A potential 100% loss from here.
This company is done, thought the scandals may take a few months to play out.

But that's UK law.
Solgold is an Australian company.

Hi Addicknt!
I don't know about SOLG in particular, but it's typically 5% to call for an EGM.
Cornerstone have 7.6% in SOLG. It seems they have enough on their own.

Remember that 20% Cornerstone shareholder who went on record in the FT saying of Nick Mather "there is no cure for stupid"? That's in addition to the board's own shareholdings, etc.Cornerstone have 65% support of their own shareholders, for sure.
To be honest, I'm more interested in the breakdown of Solgold's own shareholders. Obviously the board start with c. 20%. And I'd assume that Newcrest and Cornerstone (c. 20%) are in the opposing camp. Given PIs will split and many won't vote at all, that makes Blackrock and BHP the key swing voters.

Hi Quady!
Cornerstone could not have been clearer about turning down the Solgold offer. And, yes, of course Cornerstone have checked with their major shareholders first before declaring that they have 65% shareholder support for their position.
As for Cornerstone's requisition for a GM to sack the board, I'd guess that Cornerstone are not acting alone. The most likely explanation is that Cornerstone are acting in cahoots with Newcrest - possibly this is all a "softening up" for a lowball takeover bid from the Australians.
IMO, the most realistic way Nick Mather can hope to stay in charge of Solgold is by cutting a new deal with BHP. But what will BHP ask for in return for their continued support? A farm-in deal for Alpala?!? Or have BHP had enough of NM, too?
I wrote this morning, "foolish is the CEO who makes enemies out of major shareholders". I didn't expect to be proved right so quickly!
Anyway, Solgold is now "in play". Let's see how the game goes.

Hi Punter2!
At first sight, yes it does mean BHP can't vote against the board.
BUT, the devil may be in the details of the actual paperwork. Cornerstone have accused the board of serious malpractice; there may well be an exemption clause in such a case.
That said, having thought it over, I think Cornerstone are acting as a stalking horse for Newcrest. I expect Newcrest to shortly come riding in as a white knight, nobly intending to save Solgold from chaos, and with a takeover bid that will be substantially higher than today's share price, but which many investors here would regard as low-ball.
If I'm right, this whole show has been well choreographed. A hat tip to RBC.

Surely, in hindsight, what smelt of desperation was Solgold's bid for Cornerstone? It never had even a chance of success.
As for today's "sack the board" requisition, I'd say the forces are evenly balanced. BHP will be the swing vote.

IMO, next move is Newcrest presenting themselves a white knight riding in to save Solgold from chaos and mismanagement and making a takeover bid.
Timing: within a week.
Price: I'm guessing 40p per share opening offer.
Then it will be up to BHP to show their own hand.
On this basis I have just added to my position here.

I think we'll find that the requisition has been carefully designed so that BHP have the legal excuse they need to break that lock up. Just saying...

Why is the share price flying?
IMO, because this is now a takeover battle. (A rather messy and complex one).

Hi Shipright!
I don't even know how to describe the situation now.
A full-scale all-in corporate dust-up might be best words I can find - think a Glasgow pub late on a Saturday night with half its punters Celtic fans and then other half Rangers fans.
But Solgold is now "in play". We will soon see who is ready to put their money on the table to gain control of the world-class copper-gold asset called Alpala. And this can only be good for the share price.
Newcrest, Barrick, BHP, it's time to lay your cards on the table...

No, it's not a standard defence. But it's a move that has been made before.
If you read the Cornerstone announcement carefully, it seems to me that the motion has a good chance of success.
Any road, one way or another, it should bring monetisation of Alpala closer.

If it comes to it, I'll be voting to replace Nick Mather and the current board. They are clearly not up to the job.
I doubt Cornerstone have made this move on their own. They must have substantial institutional shareholder support.
I know it seems counterintuitive, but this could be good news for all PIs.

I'd suggest the silence from the Boohoo board speaks volumes.
ASOS were so disgusted by the situation in Leicester that they reported it to parliament. Boohoo profited from it, resulting in a coronavirus outbreak in the city.
Are there any links still to emerge between Boohoo's directors and the Leicester sweatshops?
Meanwhile, I expect Boohoo's share price to continue its slow, inevitable decline. Bar the odd hopeful rally, of course.