Member Info for ToS1963

... and in order to defend against a bid, his best weapon would be a high SP.

BrokeNovice.... hi, although he has clearly stated no sale, that is his position... wouldn’t any offer have to be put to the shareholders? Understand he seems unlikely to recommend anything but a stellar offer, but it’s not solely his call?

Novice, I know what you are saying regarding guarantees, and I never expected any, but from my standpoint it’s still annoying. Years ago, NM and his team of crack geologists thought there might be gold and copper in the hills of Ecuador. As drilling and proving that was expensive, they sought funds from the market. I did my research, knew the risks, and opted in. Years later, NM and myself by association were proven correct. The gold and copper were there in abundance. However, instead of seeking our finders reward, NM now says he would like to borrow shedloads more to get it out the ground. That’s a whole different investment case, and risk profile to the one I signed up for. I realise that as long as he keeps the majority of his shareholders onside, he is perfectly within his rights to do this. But it leaves all the LTH who don’t share that view with no option. We would be mad to exit.... our original investment, and all the risks it overcame along the way.... has not been rewarded yet. We’ve found the treasure but can’t get at it. If I had wanted to invest in a miner up front, I would have chosen a dividend payer with a proven track record. I already have 2 mining companies in my portfolio. Also, as was discussed earlier, I may no longer see the benefits of this. If I had no descendants, my investment turns to dust. That’s wrong. I understood the risks, but NM changing tack after proving the resource wasn’t one of them. He needs to create both value exit points for shareholders. Every dilution pushes both down the line.

Copperpot, you say people need to realise they have invested in a future major, but... and please correct me if I am wrong, that statement is only true in the recent past, therefore for short term holders. Long term holders did not believe they were investing in a future major mining company, they believed they were investing in an exploration company, with the risk/reward profile that entails. Trust me, those who have held for over 10 years are under no illusions regarding whether this is a sprint or not. I know it isn’t personal, and please don’t be offended, but as one of the LTH it’s irritating to be patronised in that fashion.

ColonelDrake everything in your post makes sense, I agree with it, however doesn’t that just make it even more frustrating that NM won’t consider selling off Alpala in isolation? He would no longer be under such pressure to prove up other locations, would avoid the necessity to raise huge amounts of equity, could reward shareholders by way of special dividend, whilst still allowing us to enjoy any further exploration successes down the line. Why choose to back yourself into a corner like that? I genuinely don’t understand it. He seems, as other posters have said, he’ll bent on taking this to production, or selling off the whole lot. Either of those two options would seem to me at least to present a much greater risk to my investment, and I have had no input into that decision. I do accept that the rewards may be greater in the longer term, but neither I nor the market - given where the SP is in relation to Alpala - seem to think it’s the best approach at this point.

Morning! Luckily I went to bed before it all got a bit feral last night. I don’t filter people as a rule, for fear of introducing confirmation bias in to my own views.... but as others have said below, it becomes very difficult when all the name calling and abuse starts. These are difficult times, everyone is a bit stressed out, but at the risk of sounding like the ageing hippy I am, can’t we all just be a bit kinder to one another? More importantly.... racism, and using known racist terminology is a toxic disgrace on any society. Whilst heated and healthy debate is surely what these forums are for, I would hope the administrators are monitoring and acting when lines are crossed, so that reporting or filtering is not required in order to avoid it here. Being called Eric or Ernie is ok though. Still unsure which one I am!

Zoros last post, in a nutshell, sums up my feelings - better and more succinctly than I did - as they stood last night, and proved to be correct today. Furthermore, all the new 21.5p holders looking for short term gain have to be cleared before we realise our investments. Which is sickening for all LTH at this stage.

Anon3 ... nah, my holding isn’t so big as to be uncomfortable, so perhaps I phrased the making me nervous bit badly. As with any investment, I am happier when I believe I’m getting transparency and honesty from the board. In the current circumstances with Solg, it is understandable that that may not 100% be the case. I’m sure they are keeping us as informed as possible. Not wishing for any more last minute surprises like last night though! Agree that sentiment and opinion has it that he’s got a track record of providing value let’s hope he does so here as well.

Anon3... yep, I hear you. I guess I just want clarity here. It’s natural in the late stages of an exploration lifecycle that the board will play their cards as close to their chests as regulations allow, but it usually leads to nervous shareholders like me thinking they might be hiding something! Perhaps I should just take him at face value, he is fully intent on taking this to production. Suspect his kids will seethe benefits of that, as at his age it will be more of a legacy than a career!

Anon.... from all the recent rumblings from NM and the board, it would seem, on the surface, that you are right here, and he fully intends to take this to production. Personally, I don’t think so, I think he’s talking that up to ensure best price possible for any offer. Whatever, it hopefully won’t be too much longer before we find out who is correct. In my view, last night makes even less sense in the taking it to production scenario. The funds raised are laughable vis a vis yielding a mine from scratch. All that said... I, along with most long term holders, did not invest here because we wanted to support a mining start up. We invested in an exploration company. I for one have neither the desire nor inclination to wait a further 7 or so years for a return. Should you prove to be correct, I will probably do as you suggest and stick them in a drawer. My kids will see more benefit than I will I suspect! Either way... unforeseen events nonwithstanding, we should make good money here. It’s just a question of when.

Hi Frank, I too am an old guy. This silver surfing thing’s a lark, you’ll love it. Anyway, to answer your point, as with any exploration company these days, environmental concerns are (rightfully in my view) well considered, and the risks associated factored in. Solgold has, to this point, an excellent track record of engagement with the Ecuadorean authorities, and all indicators to this point would suggest that the present government is on board. In my view, any future government in Ecuador will also have to embrace mining. There have been many bumps along the road, as I am sure you know, and there will certainly be a few more, but at the end of the day, the Cu/Au is in the ground there, and most of it will come out. Investing in exploration companies is not for the faint hearted (or impatient) though.

Hi Phat thanks.... have you got a link or something to where/when he said that? Isn’t that a shareholder decision if and when the offer is made? Not doubting you, but how and why would the CGT on part be greater than the whole? I am no tax expert (obviously!) but how can any exploration company ever succeed then? Hopefully NM doesn’t mean his own personal CGT bill is the blocker here!

So this bid... if and when it comes.... if all the majors want a piece (I think you are correct in that) what’s the problem? Solgold can use the funds for further exploration surely, and repay the loyalty of their long suffering shareholders into the bargain? So what exactly is he defending against? That’s what exploration companies are all about surely? Maybe I am being thick. Wouldn’t be the first time.

Copperpot.... It just felt rushed to me. No prospectus, very little time allowed to digest the offering, which was a bit unclear. Basically, it was pitched as a fundraiser to restart exploration post Covid. That, to me, is baffling. And worrying. It was just another example of NM seeking, and getting, more funds, without publication of a clear and tenable plan or strategy regarding how anyone who invested would benefit. That, to me, is rushed. As a complete aside, I was once asked by Fred Goodwin to pitch in more funds to RBS at short notice. Didn’t end well. Before anyone jumps at me for saying that, I am in no way suggesting those two events are similar. This is really got me puzzled, and I am hoping ultimately it’s a good thing, but I have long lost patience here.

In order to balance some of my posts, which I agree might seem negative (I’m very angry with Solg BoD) I do think something is happening here. Last nights rushed fundraiser, and today’s trading have both been very strange, and whilst I appreciate some of the speculation on here, I truly have no idea what’s going on. For so long now, with this blooming share, I’ve thought something was about to happen. There have been SO many false dawns with this.
Maybe this time.

Bozi not boxing!

Boxing, I hear you, and I guess we have different reasons for investing in Solg. To my mind, the investment case for Solg has never been around copper production. Even last nights little fundraiser made no mention of mine creation, or copper production. If I wanted a South American copper producer in my portfolio (I do) the investment case around ANTO (for example) is far more coherent. I, along with many others, have Solg in their portfolio as an exploration company, the benefits of which are around the prove/sell/repeat scenario I outline. Owning Solg is like owning a house builder share who repeatedly asks investors to dig into their pockets to purchase land and build houses, yet never sells any. It’s infuriating. I have financially assisted proving one of the worlds biggest Cu/Au resources. I would now like to reap the rewards of that, or at very least have a board who were focussed at least in part on that. If NM seriously wants me to invest more money for creating a mine, and producing copper, he needs to clearly, categorically, publish a 5 year plan, and in particular how and when investors will be rewarded. If he’s serious about that what was last night about? He’ll be building a mine, not proving further assets in the years ahead.

Iceberg... if that’s the true reason, the rushed nature of it shows a worrying lack of foresight from the BoD! Are we saying without Covid they would have run out of cash?

Quadys post got me thinking some of the reasons behind for some of the disagreements on strategy on these boards. I am a LTH. I investigate a company before I part with my cash, try to understand how why and when that investment will provide me with a return, then sit back. I don’t follow charts, don’t sell spikes, but dips, sell on news etc.... over time, I am either right or wrong. I sell when I believe my initial investment has failed, or a reasonable profit realised. Sometimes I sell if I need cash, but otherwise, I leave well alone. I do short term trade occasionally, on those rare occasions when I think there’s a chance of a quick buck. Confess that these short term trades have more often gone wrong than right, but recent opportunities included DEB and FLYB... so distressed companies really. Timing was critical for these, and it was more gambling than investing really. Timed DEB right, but FLYB wrong. Anyway.... alone among my portfolio sits SOLG which doesn’t fit into any of these categories. I invested because they seemed to be proving up a massive Cu/Au discovery in a previously unexploited area, with a reasonably supportive government. As an exploration company, the investment principle was based on selling that resource once proven, and exploring elsewhere. At that point, I receive a ROI. Or.... for multiple high risk reasons, my investment fails. It’s exploration. I understand that. SOLG have done none of the above, and I’ve held for so long, I couldn’t bear it if I got out now and it took off. It’s the only stock that has ever frustrated me to this extent for so long.

Thanks Quady. I’m not underwater here, but nor have I made money on my investments over the years.... hence why I chuckled to myself a bit at your “not boring” phrase!