Solgold Share Discussion Threads

[lefrene] 12/10/2020 20:12

LT, that's what I meant, although of course if CGP saw the writing on the wall they could sell into the market.

Arcadian, Rishi just sells bonds to the Bank of England, ie he does what the USA Gov is doing. Create as much money as you want. Mind you Rishi would do far better buying Solg for £10 billion and spending another £5 billion getting mining started, thana certain Mr Osbourne who decided a nice new railway was the right thing to buy in the aftermath of the 2008 whoopsie. :¬) We're all off to hell in a handcart, that's what's turned me into a goldbug, eeeeeeeeeek!

[jlondon] 12/10/2020 20:01

DD

1]So, NO denial that the FNV deal was done at USD$3 bn for the $100m streaming which equates to valuing Solgold at £1.0855p?

2] Yes, if Solgold wants another US$50m say, part 2, then it could come at a different valuation or the same as 1] depending on what the CONTRACT terms were, given it would be in 1 agreement?

3] The "whole" financial community is cognisant given it is now in the Deal Book?
So, for the off-takers, Ingo of Solgold [Executive Director Corporate Finance, formerly from Hannan & Partners] is working on that per the RNS. I think it was mentioned that the valuation is just below the USD$3b?

4] You do NOT know then about the $2b but you question that if this is so, then FNV is stepping in as "buyer" or more accurately financier to the Solgold*s share of capex? LoL, you did catch the implication of what was posted on the London South East Solgold forum today?

5] If you do NOT deny the USD$3b terms of the FNV $100m streaming deal, then the 55p carrot has been "trounced"?

6] If you do NOT deny the USD$3b, it will equate to US$35 per ounce [just simple maths of dividing $3bn by 85moz au equivalent?]?

7] So, USD$35 would fit in with the historical 24 year index range - not an issue but just sayin?

8] So, FNV*s M & A team at £1.085 valuation for Solgold [at USD$3bn not denied by DD] went DOUBLE the suitor*s potential 55p carrot?

Thank you so much DD.

As I said, tis was not me but someone on the London South East Solg forum on Sun & Mon, 11-12 Oct 2020 that stated the $3b and $2b part which I ran past you for comment.

J.L, Mon 12 Oct 2020 [Convo started well after the market closed]

[lowtrawler] 12/10/2020 19:19

LF, if a major successfully bids and wins SOLG, they do not need to bid for CGP. They can just wait for CGP to default.

[arcadian] 12/10/2020 18:49

lef

Possibly but I`m not sure that the Fed could afford us although Rishi might just afford Alpala the way he spends. Maybe The Fed and Rishi could bid together?

PS On second thoughts I think the Fed could afford Alpala on its own but only on DD`s valuation as that is always so low that even I could afford it.

[dozyduck] 12/10/2020 18:47

The FNV deal can't be taken as indicating either side would do another one on the same terms. Solg has paid a fairly high price so as to get its PFS complete - ie to get that particular ball rolling. And FNV isn't in the business of 'buying' whole companies. Its a spurious comparison

[jlondon] 12/10/2020 18:22

FRANCO NEVADA:
Ref: London South East, Solgold, Sun & Mon, 11 & 12, Oct 2020:

"I believe Franco VALUED us at 3 billion but that was alpala." [Sun]

"And also why would we give up a large percentage when it looks like we have Franco prepared to throw $2b at us for our share of building alpala." [Mon]

---
DD-Since you said I & Edison, you did not dispute the above Sun statement? You heard any different? And about the $2b?

Market only "values" [cap] Solgold at US1.124 bn [£868million @41.75p]today, Mon, 12.10.20

So, if the deal was done at $3b?, then Solgold was valued by Franco at £108.55p?

Funnily, $3b USD divided by 85 MOZ gold equivalent [ Ref:Mather* interview @2018 Mining Journal re: 85moz equiv], means that Franco paid US$ 3 5 per ounce of gold!?

Just asking if you heard different from London South East Solgold forum?
That was not from me. Ref: "Solgold gets $100m injection from Franco Nevada."- RNS,14.9.20



J.London Mon 12 Oct 2020.

[lefrene] 12/10/2020 18:07

“improvements to auction theory and invention of new auction formats,”

Is that where you bid a high price for something with no money, and then get the FED to print it and give it to you, before you bring the entire derivatives market down? :¬)

[arcadian] 12/10/2020 18:01

Just in time for what`s to come

The 2020 Nobel Prize in Economic Sciences has been awarded to Stanford University economists Paul R. Milgrom and Robert B. Wilson for work on commercial auctions.

The economists were commended for their “improvements to auction theory and invention of new auction formats,” the Nobel committee said.

[lefrene] 12/10/2020 17:47

LT, if some outfit gets control of Solg without having to buy out CGP, then CGP will have to sell to that entity at the price offered for Solg, or else CGP would find themselves in the same position they are in now. ie, having to fund their 15% of the exploitation cost, which they are unlikely to be able to do.

[lowtrawler] 12/10/2020 16:56

The 15% holder of ENSA has no right of access to the site, cannot do any asset streaming, cannot pledge their shares as collateral and can't control the income paid once in production. These restrictions mean it will be near impossible for CGP to do any debt financing for their $400m which is why they are most likely to default.

[lowtrawler] 12/10/2020 16:45

The holder of 15% in ENSA doesn't get to develop anything. They sit as a minority interest and only have a financial interest in the business. If CGP want someone to pay them more than what SOLG are offering, it's not going to happen. Financially, investors are better buying SOLG shares than buying the CGP business.In the event that we have a hotly contested bid for SOLG, one of the bidders may acquire CGP to give them an edge but it's a relatively unlikely scenario.

[swanvesta] 12/10/2020 16:33

Might CGP be attractive to a mid-size producer that doesn't have the clout to compete for the whole project? There's still money to be made developing a portion of Alpala, if you have the capital needed.

[lowtrawler] 12/10/2020 16:16

Lesson - never underestimate the self-interest of a Board of Director's.

[lowtrawler] 12/10/2020 15:55

Don't worry MK. After they hand over their stake in ENSA for under $5m, the Directors can sell their remaining stake in SOLG and pay it out as a Director's bonus. It should mean they are amply compensated. Once that happens, of course, the remaining business will need to be closed and the Director's can receive a large redundancy payment.

[mknight] 12/10/2020 15:42

Funny that pubs shut at 10 p.m.. must be a discovery that shows that the virus comes out after 10 p.m..

Alwaysevolving. Still cannot believe they could be that stupid . If you and Lowtrawler are right then some shareholders are going to be more than upset should they recieve less than 10 cad per share . The CEO will need to leave the country .

[alwaysevolving] 12/10/2020 15:40

I’m with you Lowtrawler on the Cornerstone issue. I think all they have is blind hope of an offer from a major that isn’t going to come due to the reasons you outline.

Think they have royally blown off their own foot by not taking up the SOLG offer simply due to being too stubborn over a personal dislike of NM and simply to save face! Not the best business strategy as a company and certainly not in the best interest of their shareholders given recent news out of SOLG.

Guess there is still time for them to accept but I’ll be very surprised if they do.

[plentymorefish] 12/10/2020 15:38

Pubs shut at 10:00pm anyway.....

[greenelf] 12/10/2020 15:35

I'd hate to be out overnight.

[itsyou] 12/10/2020 15:02

yep and more metres drilled by then

[mknight] 12/10/2020 15:00

Itsyou

Thanks for that so maybe tomorrow at 2.30 or thereabouts .

[mknight] 12/10/2020 14:59

They are not that stupid lowtrawler.

Imho they have a deal probably with BHP
Lined up . Maybe ready to go the 15th😃

[itsyou] 12/10/2020 14:57

MK
"Thought we would have had it this morning if i am honest."

Was always going to be unlikely today; It's Thanksgiving in Canada today, so the Market is closed and no one is listening there.

[lowtrawler] 12/10/2020 14:56

Mk, nobody is going to buy cornerstone unless bidding for SOLG. They won't do anything ahead of a formal SOLG bid and only bid for CGP if they need their shares to win. In my view, that is an unlikely event and so CGP will most likely end up handing their stake in ENSA over to SOLG in 18 months.