Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
After the announced merger/take over with/of CGP and the presentation I think we need to look at things in the cool light of day. What has changed?
You might say everything has changed now, but I don't think that is true. I think we are still proceeding to production. If we say that the 'For Sale' signs are up, then we are saying we are trying to sell Solgold cheap, i.e. it is a forced sale. I don't think any of us want that. Things might have changed to the extent that all options are now open, but I think we are still working to taking Apala to production and should someone come along with an offer we can't refuse, so much the better.
I am presuming that CGP allowed the merger/take over to go ahead now is probably that they no longer had to deal with Nick Mather, but I guess that , for a long time that joining up with Solgold was the one act that would give CGP potentially decent value, and they knew it. Of course the CGP shareholders may turn the deal down and then what happens?
Frog
Then we get their 15% of Ensa for 3.5 million next year I guess... granted our share price will collapse if the merger is voted down... but they basically have no other choice really.
DF, it seems pretty straightforward to me; we needed to agree the merger in order to deal with concerns from interested parties and to get a transaction completed.
Sorry DF, one other point. You say if we're up for sale now that means we're trying to sell cheap. Personally, I don't think it means anything of the sort and yesterday DC gave a pretty clear indication of what he thinks we're worth. It was almost as if he were advertising the fact to both investors and any potential bidders.
Mind you, having said that, I don't know what your definition of cheap is.
I don't know if this has already been discussed, but can anyone give a reason as to the very specific, caveated point of Solgold being able to to pay Cornerstone 20% of the deal in cash? considering we all know we have none.
cheers Lunch
11 trade popped up gla
What crossed my mind was the sale of one of the other prospects, that would produce enough cash to help subdue the dilution caused by the extra CGP share issue
Which other prospects, StukeyBlue?
Porvenir aside, i can't agree. Projects can't be valued until there's a resource estimate and better still, an economic study. It's impossible to value an asset without knowing how much metal could be in situ and how profitable it would be to extract.
So, aside from Porvenir, everything else carries a nominal value. That's why it is so important to continue regional drilling. It's the best value add.
This was reiterated by Darryl yesterday.
Bozi
Any one of them. I don't feel we know the whole story on the outliers, plus there was a block very near to a Lundium (?) mine that they might know about the geology there, and for a time was mentioned in dispatches..
I was not stating fact, just a suggestion
Without checking I'm pretty sure it's Porvenir that's nearest Lundin's ground. Once we get a PEA on that i think it's far to move it up the value curve.
I was just saying on the point generally. It was something i picked up from listening to yesterday's call this morning and whilst I'm favour of slimming down our portfolio, I've had to take the view that there's nothing to be gained until we can at least put some JORC figures on the licence in question.
Thst said though, if Cascabel is worth 78p to SOLG shareholders (and potentislly a little more besides) is it unrealistic to think Porvenir might be worth 22p to SOLG shareholders?
Just on the off-chance someone wants to star the bidding off at a quid...
Bozi
The reason for this statement about potential sale, is that for a company with very little cash, why include a clause to the effect they could pay 20% (circa £30m) in cash for CGP shares?
StukeyBlue- the more cash we can give them the fewer new SOLG shares will need to be printed, so it benefits us as SOLG shareholders.
Also, CGP have a holding of SOLG stock that can essentially be placed with new investors. It's basically a placing of existing shares. CGP receives the cash proceeds and loans them to SOLG.
SOLG would therefore have enough cash to settle CGP holders 20% cash 80% SOLG stock. However, SOLG won't want to do this if other funding avenues that are going to push the company on in 2023 don't yield something fruitful. In such a case CGP will get all stock amd SOLG will still take the proceeds of the placing for working capital.
So it boils down to can SOLG get a better deal for a sufficient level of finance for 2023 elsewhere. If they can, CGP will get cash. Of they can't, they won't.
Bozi
I am on that page, but it was stressed yesterday the 'merger' was intended to be wrapped up quickly, and it was also suggested that CGP could sell their SOLG directly to a third party. Nothing guaranteed .
Thanks Bozi for that clear explanation.
Stukey, I thought I read that the merger was to be completed 'late Q4'.
Cut out Christmas and two weeks in October so 9 weeks left, not long
What's the significance of an 11 trade bubble?
1 is for an rns.
Looking very positive at last whilst all else is looking down and out. Have a good evening
Those ducks are getting louder and louder ;))
Code 1 trade ONWARDS AND UPWARDS GLA ,see you 7am novice !!:):)
Thanks StukeyBlue.
I must admit I'm not sure if we're talking about the same thing or if you're coming at this from another angle.
Agree nothing is guaranteed, but it sounds quite likely from what Darryl said that they will sell the stock, and that SOLG can call the funds if necessary (this would appear to be a given).
Lets see what comes about.
Let's hope for a stonking Morning Glory at 7am.
Some of you LTHs might not even remember what that feels like...
Sean, I will never forget that day mate.....SP jumped few baggers to circa 80p re speculation about the Solomon islands asset (where our name originated....) I even managed healthy trade that day which if memory serves me right ended at circa 50p.....:)
Bring that or even much less on.....
I got 46 p on the way down