Solgold Share Discussion Threads

[lowtrawler] 24/11/2020 09:06

Arcadian, I'm sure our major shareholders have made their views clear. I suspect that it is down to management style.

Good hands on project managers like to push for early delivery and keep the pressure on to meet tight deadlines even when the deadline is unrealistic. That way, they get things earlier than would otherwise be the case. They never admit realistic dates because it would take the pressure off.

Internally, it's a good way to manage but it is not a good way to plan or build a reputation for delivery. Plans and published delivery dates need to be realistic and met consistently. At Director level, this is what they need to manage. Nick is clearly still a hands on project manager who needs to step back and act as a Director.

The newly appointed NEDs will be able to ensure plans are more realistic. They will be able to ensure dates don't get published without confidence on delivery. They can leave Nick to project manage activity if this is his style. Essentially, leave Nick to get things done, Planning to create realistic plans and allow Corporate Communications to control the narrative.

Personally, I would remove Nick from the communications process and so free up his time to work on delivery.

[arcadian] 24/11/2020 08:05

My loyalty and trust have taken a real hammering. I give in.

The real issue for me though is that in my experience delayed news is rarely good.

In this case it`s POR and the odd tweet re RIO still puzzles me.

PS If is is as detrimental as you suggest Low given our large and powerful shareholders with experience in this field I`m sure that his ear has already been bent.

[lowtrawler] 24/11/2020 07:58

MF, there is no point for PIs to broach the subject with SOLG. It needs to come from the BODs or the major investors. The new NEDs should be able to get it under control. It's just one of the reasons why strengthening corporate governance is a good move.

[greenelf] 24/11/2020 07:32

Ask schlemiel on lse about grotesque political posts?Indeed. Short memories.

[greenelf] 24/11/2020 07:21

#TruthMatters

[mirabeau] 24/11/2020 07:15

Drop the tedious, pious politics please. It's grotesque. You're not Sir Thomas More

[michaelfenton] 24/11/2020 07:07

Has anyone been in touch with the company to bring up the subject which Lowtrawler has highlighted without accusing Mather of deliberately MISLEADING SHAREHOLDERS AS SOME HAVE.

[greenelf] 24/11/2020 06:54

If you accept any behaviour, then you are part of the rotten Trumpian world view.#TruthMatters.

[greenelf] 24/11/2020 06:52

Good post LowTrawler, nail on the head.If you mess up deadlines on a 3bn mine build it will be expensive possibly fatal to the company. Trust is everything. Lies are not acceptable at any point, period.

[lowtrawler] 24/11/2020 01:10

Arcadian, you are trying to defend the indefensible. Nobody is forcing SOLG or Nick to announce dates for delivery, they do that themselves. Most organisations provide dates they know they can meet and so beat. It leads to pleasant surprises from early delivery and the reputation of the management team improves.

How would you feel if a friend was always between 2/3 hours late in meeting you at the pub and only texted you after you'd been waiting for an hour? SOLG have performed the business equivalent on dozens of occasions.

In early September, if Nick had said the PFS was running late due to covid, other unexpected issues etc. and would likely be delayed until Q1 although they'd try to get it sooner - nobody would have batted an eyelid. Instead he recommitted to late September / early October. When that deadline was missed, it was early November. On missing that deadline, it was Q4. Now, we hear from CGP that it will be Q1. Wishful thinking is not going to instil confidence.

I'm sure that SOLG are delivering everything as quickly as they can. I have no problem with the quality of their output. The issue is trust. If someone says they are going to do something, they need to deliver. Failing to do so is a breach of trust.

Importantly, delays also impact the financing required to deliver. An extra 3 months can easily cost an extra $20m. Most organisations plan with contingencies to ensure financing doesn't run out. SOLG put on their rose-tinted spectacles and realise late in the day that they need more money. It's not a good position to be in when you are embarking on a $3bn spend to build Alpala. SOLG need to build a reputation for always delivering on their promises and deadlines or they will find financing to be more expensive.

[zoros1] 23/11/2020 23:19

Arcadian.

The topic of PI loyalty has been discussed numerous times.
I will make it quite clear that I have absolutely NO loyalty to ANY CEO of ANY company. They do what they must do to make their lives comfortable and their consideration for shareholders is irrelevant to them in the long run. It has to be - we are so insignificant at the end of the day.
I have to admit here to being badly burned during the Quindell era, where the then CEO (Terry Price) literally stole the company money before bankrupting it amd sailing off into the distance.
[I note in last weeks S Times that he is back again trying to drum up business for another of his companies FFS].

The day any shareholder starts becoming emotionally attached to the boss of a company that they have invested in - is the day you take your eye off the ball.

Finally - and I have been quite vociferous in this - I am NO fan of NM, I think he is a poor performer and very inefficent. I for one would be more than happy for someone else to hold the reins @ Solg.

I'm not in it to be his friend. I'm here to make money and prop up the capitalist ethos I believe in!!

Sleep well - I do every night.
Regards
Z

[arcadian] 23/11/2020 23:01

Zoros

The points I miss you list so clearly and they seem to amount to a total lack of faith in the man and his management. Given your condemnation it is surely hypocritical to own shares in a company he part owns and manages. From your denigration however I must assume that you must have already sold your shares although I have known cases where greed overrides any other consideration, dissatisfaction, morality etc and if this is true in your case why complain? Just be patient, sit tight and at some point one hopes, take the money.

I think NM has a good track record and he is paid to run the company. Let him get on with it and wait for the outcomes. You will sleep better I`m sure.

[arcadian] 23/11/2020 20:20

Low

The masochist said to the sadist "Hit me" and the sadist said "No"

We small investors are recipients, not in the driving seat but you can leave if the pain becomes unbearable.

PS I would be disappointed if that happened as I do appreciate your conservative fact based, analysis
I do share share some of your frustration ..

[lowtrawler] 23/11/2020 19:09

Tibszol, missing deadlines for SOLG predates the virus. There will be occasions when events are outside their control but this applies to virtually every event. Often, as with the PFS, we are promised delivery in days only to find it being many months. I have personally fired people for missing deadlines and have zero tolerance for serial offenders. Under promise and over deliver should be their approach.

[tibszol1] 23/11/2020 18:31

The very nature of the mining industry is its unpredictability, anyone having a problem with that should put their money into a bank account, see how 1/2% interest grabs you!!

[greenelf] 23/11/2020 17:55

? Makes no difference?People invest money based on not so truthfull estimates..Big difference between 2-3 weeks and 3 months!!

[tibszol1] 23/11/2020 17:27

Why are people getting their knickers in a twist about so called missed deadlines, it`s not as if Solgold is liable to millions of dollars in penalty payments. NM gives guidelines on certain completions assuming everything goes smoothly and exactly to plans, but currently with covid-19, Ecuador is not the easiest of working environments and no doubt Solgold frequently will be relying on sub contractors doing what is required, on time.
NM could just as easily say absolutely nothing until whatever it is, is ready for release to the market, but it`s obvious that NM likes to keep everyone abreast of all developments, no doubt he has his reasons.
PFS and conditional funding agreements will arrive in due course when all the "t"s have been crossed and all the "i"s dotted, whether this quarter or next quarter, makes no difference, better a fully watertight professional job than some half baked rush job.

[michaelfenton] 23/11/2020 17:23

All companies miss deadlines. Yes it is unfortunate but mostly caused by his enthusiasm. And something else is going on that we do not know about which is likely to be good news?

[arcadian] 23/11/2020 17:09

They do miss deadlines and that`s unfortunate but we have to remember that they have a lot going on as they try to do the drilling stuff and prepare to mine always looking over their shoulders in case a predator is nigh so maybe we should be a little more tolerant before joining the current vogue for calling people liars and vote for the resolutions if you support NM or against if you think he doesn`t know what he`s doing. I`m in the former camp.

[lowtrawler] 23/11/2020 16:45

Zoros, the PFS was due to be published end September and Nick was still saying in early September that it was tight but he hoped to publish then or thereabouts. In early October, Nick said it was due to be 3 or 4 weeks delay. The MD&A, published last week, changed it to Q4 and gave a huge list of outstanding activity needing completion. I don't think it will surprise anyone if it slips into Q1.

SOLG and Nick constantly tout deadlines which are missed. Just in the last few weeks: Porvenir assay results in 3 weeks; Drill 2 at Porvenir on-site by end October; Rio Amarillo due to commence drilling in October. These are not isolated incidents. The new Director's need to address the issue as it is harming their reputation.

[huncher] 23/11/2020 16:21

See Tuesday has come early for the Bullion Banks this week - how do they keep getting away with it.

[zoros1] 23/11/2020 16:17

So between now and the last time NM spoke mid Nov, are we saying that NM lied to us about the date of the PFS (IE: December quarter)?
Since when does anyone listen to what CGP has to say???
Z

[lowtrawler] 23/11/2020 16:13

The PFS is jointly published by SOLG and CGP.