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“For six years the biggest liability on SolGold has been Newcrest and BHP. They’ve talked down the asset,” Sangha told The Australian Financial Review. “This is a case study for junior miners as to why you wouldn’t want these guys involved in your project.”
Definitely a rumble in the Ecuadorean Jungle coming and my money is on Sangha and his baseball bat to give BHP et all a damn good pasting! Bring it on!!
I really hope it goes well I have a relatively small holding of just over 100k shares now - it's all well and good this has come out now - but let's not get carried away thinking the big majors will roll over and get stumped by the little guys. History should tell you that it rarely happens. fingers crossed all the same.
At last ftjny your starting to get it.
That’s remarkably ironic coming from someone who has repeatedly and doggedly claimed that Solg were ( or are) going to production! Think you need to re-read the article Q as Sangha makes it very clear that all the bluster of going to production is exactly that - just bluster! You need to wake up and smell the roses lol
FTJNY I have read it.
Read the bit that says JV to production.
Q, that is true, but is it really likely? As for the 'go it alone' argument and all the stuff about how easy it would be to fund the development with minimal dilution - I take it you now realise it was never deliverable?
Did anyone really believe the company when it said it had $1bn already committed?
I'm afraid to say you're fighting a rearguard action at the moment, and I assume you understand just how much has changed in recent weeks?
It seems we are now being led by people who have the best interests of small shareholders in mind - and I'm guessing that should make you very happy?
Who knows where this will lead us, but the recognition of reality is the best thing that's happened for a very long time.
Morning Add …. Re your earlier post I can’t help thinking DGR may have a part to play here even after a takeover. I can see them used as a vehicle to hoover up some of the unwanted licenses from the new buyer ….. maybe even prearranged? Nick would know which ones he wants …. Then we can all embark on another 10 year odyssey lol
Dbw hope not,lol!!:)
DBW, I think that makes a great deal of sense. NM's silence at the moment is very interesting and one can only assume he's happy with the direction of travel.
Financially I’m guessing it makes (tax) sense to sell the whole lot, but an immediate deal from something Mather led to pick up certain licenses would mean most got what they wanted.
Add …. For Sangha to come out and be so brazenly ****y he must have a deal in mind for at least Cascabel…. Which could in turn flush out another …then who knows
Morning addicknt, yes I do believe Solgold when they say we had a billion lined up. As this could have been offtake or royalty agreements. It's not something a company says if it's a lie.
Yes the company is changing its position and I am changing mine along with it, as I look at facts and follow the evidence chain.
I haven't seen anything that indicates a sale of Alpala or Solgold as a whole.
So looks like we are going to production as a JV at the moment.
DBW, I am not sure a deal is in mind - else why sell a royalty last week?
Dbw yes good point let's see what happens
The people behind the royalty have a direct interest in Solgold via a large holding in CGP ….. it’s stabilises the price and eases pressure at the AGM whilst sticking two fingers up at certain shareholders who thought we were backed into a corner…. Let’s see if and where these shares are placed
mister, it is a puzzling question, but my view is that given the board knew a change of direction was about to happen, they didn't want further dilution and only saw the royalty deal as a short term fix to plug the cash flow situation.
Obviously, in any subsequent deal a buyer will take note of the arrangement and will reduce the price accordingly, but I'm guessing our lads believe that will be less painful for shareholders than issuing a load of new shares.
Q, I know you place a great deal of emphasis upon evidence. As far as the $1bn is concerned, the company never provided any - from memory it was a comment made by Ingo and nothing more.
My guess is that he'd had meetings with various potential funders and they expressed an interest, but caveated that interest by saying "come back when you've got something tangible" i.e the BFS. In my opinion there never were any firm commitments - they would have released an RNS if there had been and expressions of interest do not amount to done-deals.
Poor old Quady has been telling us for months to trust and believe everything the company says.
Now that they are basically telling us straight that "going into production" was just a bluff... he doesn't trust or believe anything the company says.
They've really crapped in his kettle.
Morning all, I don't think NM has been silent on this matter - his comments in the recent DGR Global RNS indicate he believes the best way forward for SOLG to restore shareholder value is through further exploration across the portfolio.
The company is no longer talking about production. The word isn't even mentioned in the AFR piece posted yesterday. This is the key paragraph:
"It now seems far more likely that SolGold will sell part or all of Cascabel and use the proceeds to return to its core competency; greenfields exploration."
The above appears to be what Sangha and Mather want, perhaps Irwin just wants out altogether with a sale of the whole company. I guess there is a chance we retain a small stake in Cascabel which in several years time will be a nice little earner, but it's hard to see why a buyer would want us to have a seat at the table (we're not exactly in the best shape as a company, are we!).
If BHP were going bonkers over a 0.5% royalty deal then they'll go batsheeet crazy if SOLG sell 25% or 40% of Cascabel to a competitor or players like Gina or Maxit.
It's all very well saying we want to do this and we want to do that... but at every turn you are either going to see a bid or alternative presented by BHP or you'll see BHP walk away. That event has yet to unfold but it's coming as you can't cut the Alpala cake up and expect BHP to just sit on their hands. So any move to monetise Cascabel, whether minor or larger is a provocation and likely a deliberate one by the new SOLG team.
BHP don't have to do anything until the new SOLG team present the results of the strategic review or a part sale deal which will have completion and get out clauses etc to allow BHP to counter offer as that's all part of the plan/game is it not?
BHP can't really bid until they see what's tabled. The question is...if they dropped an offer onto the table tomorrow for CGP then that potentially scuppers the Merger and AGM plans. That's the only spanner that could be thrown into the works. Or... NCM could make offer for CGP. Trouble is, once you end up with 15%, you've declared your intentions and the other 85% could get very expensive indeed... so I think it unlikely.
If we forget about BHP entirely (hard to do) then let's take a 30% stake sale of Cascabel as a starter. Let's go with $700m as example. Great... we have $700m in cash, value put on broader 70% but .... we still have $2bln+ of funding to sort. The market is going to crucify us for that potential debt burden. In fact, based on $3bln Capex, you could flip it the other way and say 70% sale and SOLG retain 30%. SOLG bank $1.3bln. $300m gets spent on exploration and $1bln goes to funding our stake share in Alpala/Cascabel. I'm sure there's advisors fees and tax implications that can eat away at $200m with ease, so really it's more like $100m for exploration post that event.
I can't see BHP allowing any of it... but for me, it only works if SOLG sell a large chunk of ENSA. Retaining 25% to 30% is just about doable but open to potential horrific cost overruns which as per Turquoise Hill debacle... can see $3bln Capex become $6bln. Block cave to that depth is not straight forward and the market will take the view that it can't be done until it is proven so rerate will be 5 years away. Not good for LTH's.
All SOLG need to do is deliver a deal that looks good value for shareholders and then see what BHP offer as a counter to that. The danger is, SOLG present a maxit/Gina style deal which is not great and BHP then just offer something minor above that.
It's either going to play out and deliver 50p+ (poor) or it's going to go Noront style and deliver 100p+. The assets are not in question and the PFS shows that 75p to 150p all doable dependent on which numbers you take on board... copper at $3.7 or copper at $6 makes a huge difference and lets face it, in 2027, copper is not going to be $3.7!
I cannot see any scenario where we could sell 30% of Ensa for anywhere close to 700 million.. just my opinion.
I think if we do manage to hold on to any of Ensa, as a minor JV partner, it won’t be more than 10% we simply can’t afford the finances attached to a large percentage… and from everything we have read from Sangha, they want a payout, not financial commitments over the next 8 years, and so do I.
That's why we need the 0.6% royalty deal to take us to DFS to obtain a larger percentage on our NPV.
“For six years the biggest liability on SolGold has been Newcrest and BHP. They’ve talked down the asset,” Sangha told The Australian Financial Review. “This is a case study for junior miners as to why you wouldn’t want these guys involved in your project.”
- FROM THE ARTICLE
Note those words - "they've talked down the asset". Their own asset! And it's true.
There is a mysterious poster who has appeared on "the other channel" called Lowtrawler whom I am convinced is a paid shill for one of the big boys. Admits to being not invested with no intention to buy - but is somehow obsessesed with SOLG. Here, he says, "just to educate myself" and to "help others".
His spiel is basically that of the big boys, his weasel words always talking down SOLG, ****ging off CGP, and dismissing the value of Cascabel.
The other channel is really low value in terms of debate (slug never gets banned there!) so this guy stands out as someone who knows exactly what to say to spread negativity, doubt and fear amongst retail investors. He only appeared when we fell to the 14p level and has been hammering away with very detailed deramping ever since.
The gloves are off and the dirty tricks department are getting to work.
the key thing in the game forward is what alternative they have at hand? with the tough wording already used, wonder how the AGM would go? better to do it via Zoom to avoid ending up at the police station.
Medi too late now for reconciliation
“BHP & NCM can go f**k themselves “
Followed by
“It’s all about taking these big companies down and embarrassing them”
Really hope they can back up this stuff ….. it’s like trash talking before a boxing match …. It fuels the fire
if they dont back it up, we go to a penny stock. Hope they are responsible investors/managers and not gamblers.